Smile Formal Overdraft Fee

adl999

Just a warning to all long term Smile account holders...

I've been a Smile current account customer for many years (since 1997 I think) and had an available overdraft of £1000 for most of that time, but don't think I've used it much - certainly not in the last 7 years.

Every year I get a secure message saying the overdraft limit has been renewed, which I might read, or just ignore.

However, I read the message I received today, labelled 'General', which stated "A formal overdraft service charge of £20 is payable where we agree a formal limit over £500.00."

I saw a thread on here about these charges being brought in around 2008, but looking through my saved secure messages, this year's is the first to mention the fee.

I do not recall ever agreeing to this charge, so have emailed them to reduce the O/D limit to a non fee paying amount (and refund any unnecessary fees already paid). I await a response.

Adl999

premierfella

Do you have Smilemore at the moment?

I mention this because, as I understand it, the free Smile current account doesn't come with the £500 fee-free formal overdraft (i.e., unless I have misread, you would be charged £20 formal overdraft fee after 12 months on ANY formal overdraft amount) AND they could slap you with a £20 service charge for reducing the overdraft limit (unless they treat your request to move from Smilemore to Smile current account as opening a new account and qualifying for the 12 month £500 fee-free overdraft)

I understand why they have the £20 annual charge, but it does make Co-op and Smile uncompetitive compared to most of the competition in this respect for customers who just have formal overdrafts set up as a buffer to avoid fees if they accidentally overdraw.