Over Charged for Business Banking Charges

Wolvesboy

Hi,
We run a small 'work from home' business but turning over approximately £80K per annum. Over the last 12 months we have been over charged on debit interest on our arranged overdraft. This amounted to £2500 over the 12 month period, and this has been a huge drain on our business. The bank repeatedly denied anything was wrong and stated the process must be correct as it was automated. Finally they have acknowledged the error and apologized in writing and repaid the £2500.
The impact of the error has been huge as we have defaulted with some suppliers and lost credit terms. In addition the £2500 would have generated revenue of £5000 and hence the business has lost £2500 income.
Do we have any course for compensation and/or assistance to help rebuild our business. If so, how would we go about it and who could we possibly speak to. What should we expect of the bank regarding put this situation right.
Thank you all for any responses

warm regards
:mad:

greyteam1959

Your first course of action in this situation is to approach your bank.
They will have a complaints procedure.
Follow this, & then if you are not happy with the result, contact the Banking Ombudsman.
I would suggest you do everything in writing & keep copies of all documents.
Not really much help I'm afraid............

Wywth

Wolvesboy wrote: »

Hi,
We run a small 'work from home' business but turning over approximately £80K per annum. Over the last 12 months we have been over charged on debit interest on our arranged overdraft. This amounted to £2500 over the 12 month period, and this has been a huge drain on our business. The bank repeatedly denied anything was wrong and stated the process must be correct as it was automated. Finally they have acknowledged the error and apologized in writing and repaid the £2500.
The impact of the error has been huge as we have defaulted with some suppliers and lost credit terms. In addition the £2500 would have generated revenue of £5000 and hence the business has lost £2500 income.
Do we have any course for compensation and/or assistance to help rebuild our business. If so, how would we go about it and who could we possibly speak to. What should we expect of the bank regarding put this situation right.
Thank you all for any responses

warm regards
:mad:

Are you sure you are not confusing profit with turnover somewhere along the line?

Nearly always a fatal mistake in any business.

Otherwise, 100% RoC in just 12 months? Heck if that could be shown to be true, I would definitely be in.

You should have contacted me earlier... :cool:

Annisele

Information from the Financial Ombudsman Service here.

Assuming you don't have any employees, you sound like you'd be a micro enterprise and therefore would have access to FOS - but you should go through the bank's complaint process first.

I do think you'll struggle to show that you've lost out by £2,500 - for the reasons Wywth gave. But if you can show that you've lost money as a direct result of the bank's wrongful actions, you *might* be able to get that back.