first direct - informal overdraft fee

red98

I have a first direct 1st account. In March I made a mistake and forgot to transfer money into the account which was needed to cover a direct debit due out. This resulted in the account being overdrawn by 251.33. I moved the money in the next day when I realised my error.

The account has a £250 'free' overdraft limit but obviously the prior day I was over this. I therefore expected to incur charges. Having looked at the terms and conditions I thought I would be paying a £25 fee for using an 'informal overdraft'. Fair cop since it was my mistake. My next statement confirmed a charge would be applied but didn't state how much it was, just that it would be '1 * informal overdraft fee'.

2 months on and the fee still hasn't come out of the account. Somewhat puzzled I have looked online and account now says no charges due to be applied for current period. Looking back one month it shows a charge was applied but that the charge was 'nil'.

I'm confused, has there been a mistake or is there some leniency applied for a first time error? Anyone else have experience of this? Obvious thing to do would be ring them and ask, but if the charge has not been applied in error I would prefer not to bring this to their attention! The account has always been in credit before and after this one mistake (in actual credit, not using the 250 free overdraft).

matttye

Likely to be leniency for first time error.

I would ask them, or make sure there's plenty of money in your account in case they do take it.

Gromitt

It's as per the T&Cs:

Arrangement fee waivers

We will not charge an Arrangement Fee:-

• for arranging a formal overdraft facility; or
• provided within the last six months, we have not agreed to an informal overdraft request from you
• for Informal Overdrafts if covering funds are paid in before the end of the day
• if debited Arrangement Fees (or interest) cause your account to go overdrawn or further overdrawn
• for informal requests of up to £10.

It seems you match more than one of those, so there should be no charge.

red98

I must have missed that (fairly important) part of the T&C's. Good to know there is some sort of de minimis criteria.

dalesrider

What is your actual overdraft limit?

1st time over will not be charged anyway. As per above

red98

All customers accepted for the account get a £250 interest free overdraft (or did at the time I applied) so that's what I have. I have never asked for any overdraft more than that initial amount on the account. Seems it might come in useful if I were to make a mistake with timing of payments again though.

dalesrider

Used to be £500 as standard, with the 1st £250 interest free.