RBS - 50p overdrawn - £24 charges

silkyuk9

My son has told me today that he has received a letter from RBS informing him that he is being charged £5 per day for being 50p overdrawn. Is this legal? The letter has arrived this morning, Monday and was posted Friday before. He has just left one job after years of service and is kind of broke until he gets his first months wage from his new job. Knowing he didnt have any money in his account as such obviously a DD has come out which has taken the ammont over his limit by 50p

Surely the interest rate on this is way beyond the beyond but for 50p £6 per day is bloody robbery and its up to £24 from today.

Any advice? He is borrowing £24 to pay it but its scandless.

Banks will lend you their umbrella when its sunny no problems, but when it rains they want it back

Wywth

silkyuk9 wrote: »

My son has told me today that he has received a letter from RBS informing him that he is being charged £5 per day for being 50p overdrawn. Is this legal? The letter has arrived this morning, Monday and was posted Friday before. He has just left one job after years of service and is kid of broke until he gets his first months wage from his new job. Knowing he didnt have any money in his account as such obviously a DD has come out which has taken the ammont over his limit by 50p

Surely the interest rate on this is way beyond the beyond but for 50p £6 per day is bloody robbery and its up to £24 from today.

Any advice? He is borrowing £24 to pay it but its scandless.

Banks will lend you their umbrella when its sunny no problems, but when it rains they want it back

What is this "kid" (your term) doing setting up direct debits on his bank account for, especially if he hasn't yet got any income? Who did he think was going to fund this expenditure?

Yes it's legal, if that's what the terms and conditions your son agreed to (normally they do charge £6 per day). I don't think there is any interest applied is there?

If this was his 'first offence' he could try requesting the charge back as a gesture of goodwill, but even then they may only offer the first £6 charge incurred back.

dunstonh

My son has told me today that he has received a letter from RBS informing him that he is being charged £5 per day for being 50p overdrawn. Is this legal?

Yes it is legal. Taking money without permission has consequences.

Any advice?

Use it to show your son how he should control his finances and the consequences of what happens when you do not.

Banks will lend you their umbrella when its sunny no problems, but when it rains they want it back

Still no excuse for taking their money without getting their permission first.

Most banks will refund charges on a first time error. It's effectively a get out of jail free card that once used, you dont get a second chance.

safestored4

I bank at NatWest which is part of RBS so the terms and conditions of the account are presumably the same.

Around the beginning of 2011 I received a leaflet with my monthly statement headed "Important Information About Unarranged Overdraft Interest And Fees". This reads "From 1 February 2011 we no longer charge interest on unarranged overdrafts ...." and goes on to say "With effect from 1 February 2011 we are introducing a new Unarranged Overdraft Fee. The fee is £6 for each day for which an Unarranged Overdraft Fee is payable."

The fee will have been automatically have been applied by the RBS computer system and if this is the first transgression will likely be refunded in full, provided your son is reasonably apologetic for his error.

Meadows

silkyuk9 wrote: »

Surely the interest rate on this is way beyond the beyond but for 50p £6 per day is bloody robbery and its up to £24 from today.

Not interest alone but also admin and it will be as per the T&C's he signed up to with the account.

I am sure if he approaches them humbly as a first error on the account they may waiver the charges, not not if he goes in ranting and complaining.