Natwest overdraft fiasco. can I claim compensation?

guitar0211

Hi,

I am new to this site, but I would just like to say I think the whole idea is brilliant; kudos to the team that started it.
I need some advice on my Natwest overdraft. Basically, as a second year student in 2010, I was granted a 2000 pound overdraft (it was supposed to be much less). Anyway, I didn't ask questions as I was new to personal banking and just assumed Natwest knew what they were doing. soon after I discovered they were charging me interest every month, from between £15-£30. Again, I went with it as I assumed this was the terms of the overdraft. Anyway, I graduated last year, and was therefore placed on a graduate overdraft. I discovered last month that for the first year graduate overdraft is not supposed to be charged interest at all, and I was being charged every month. So I informed them of this blunder lasting three years, and they paid me back all the interest they took off me, which was £400.
What I would like to know, is can I claim compensation, based on the fact that they screw up for years and didnt even notice?

Cheers

grumbler

I have to warn you that "compensation culture", although being promoted by "the team", is not popular on the most boards of the forum, including this one.

I'd say, be happy and move on.
Had you not made far too many assumptions too instead of just reading the T&C?
They refunded the interest and essentially gave you free overdraft for many years - and they had no obligations to give you either a student or graduate account with a free overdraft.

JuicyJesus

I agree with grumbler. They've put you in the position you would have been in had the mistake not been made. That's a fair offer, especially given you didn't actually tell them for three years - if you'd noticed earlier, and not just assumed it was correct, the whole issue could have been corrected earlier.

YorkshireBoy

"Compensation" should put you back in the position you would have been in had the problem not arisen. They've done this already haven't they?

Sometimes you can be compensated for 'distress and inconvenience', but that doesn't seem to apply in your case.

They only thing you could possibly try and 'claim' is 8% interest on the amount refunded.

older_wiser

guitar0211 wrote: »

Hi,

I am new to this site, but I would just like to say I think the whole idea is brilliant; kudos to the team that started it.
I need some advice on my Natwest overdraft. Basically, as a second year student in 2010, I was granted a 2000 pound overdraft (it was supposed to be much less). Anyway, I didn't ask questions as I was new to personal banking and just assumed Natwest knew what they were doing. soon after I discovered they were charging me interest every month, from between £15-£30. Again, I went with it as I assumed this was the terms of the overdraft. Anyway, I graduated last year, and was therefore placed on a graduate overdraft. I discovered last month that for the first year graduate overdraft is not supposed to be charged interest at all, and I was being charged every month. So I informed them of this blunder lasting three years, and they paid me back all the interest they took off me, which was £400.
What I would like to know, is can I claim compensation, based on the fact that they screw up for years and didnt even notice?

Cheers

I don't agree with any of the previous repiles we all sign up to the terms and conditions when opening an account both the customer and bank should follow these. you have been out of pocket over the past few years but i doubt you'd get much in compensation unless your credit rating has been affected.

JuicyJesus

older_wiser wrote: »

I don't agree with any of the previous repiles we all sign up to the terms and conditions when opening an account both the customer and bank should follow these. you have been out of pocket over the past few years but i doubt you'd get much in compensation unless your credit rating has been affected.

So in other words, you do agree with the previous replies.

older_wiser

JuicyJesus wrote: »

So in other words, you do agree with the previous replies.

No i think if he wants to get compensated by the bank for the errors they made then i'd say go for it

it depends whether he thinks the amount that would be given in compensation is enough to justify making a complaint. Its afew words on a paper or you can usually make complaints online now.

They did break the terms and conditions of the contract they entered into when opening the account if the customer had done this for 3 years i wonder how lenient the bank would be.

innovate

I suppose the bank could ask for some compensation from him because he didn't verify with them that his assumptions would override the T&Cs he had signed up with. That could have caused the bank some distress.

Ridiculous?

Yes. Just as ridiculous as the OP wanting some additional compensation under the circumstances described by the OP.

chanz4

Compo crew are out, what would we do without it. Be an adult!

alanq

I don't know what the Ts&Cs stated 3 years ago but all the banking Ts&Cs that I recall reading include something on the lines of the current NatWest Personal Banking Ts&Cs.

"9.1.3 You should read these statements, and tell us as soon as possible if you believe there is an incorrect entry in any statement."

I think it highly likely that the OP has also broken the Ts&Cs of their account. Either they didn't read the Ts&Cs that they agreed to for the account that they applied for or they did read them and failed to inform the bank of a suspected mistake at the earliest opportunity.

innovate

alanq wrote: »

I think it highly likely that the OP has also broken the Ts&Cs of their account.

Agree, and as a shareholder (it's Natwest, after all, so we sort of all have shares in them), I now feel quite distressed about such a customer. As a shareholder, I think I might be entitled to claim some compensation from the OP.