What are my options?

neilem

My account which is primarily used for trading is based in Luxembourg, but they have offices in UK and various other locations around Europe.

They have multiple sub-accounts for different currencies (international trading). When I originally setup my account I wanted the dollar sub-account and requested as such, unfortunately this was done over the phone (verification phonecall). So I traded in dollars in American companies, but my capital was in the GPD subaccount, so effectively I was taking money out of a sub-account without any money there. This obviously draws a penalty.

So my capital is sitting in another account untouched, and I am receiving a debit interest which is accrued daily, since the dollar sub-account has a negative balance (10.4% p.a.) - all without my knowledge (sure, I could have checked on the website if I had known). The only notification to alert me was by email on the 14th August, the sub-account first went in the red on 28th May.

They said they would lower the p.a. charged to 6.8%, which lowers it slightly, but not really enough to put a dent into the total penalty charge. Do I have a leg to stand on? should I accept the lower p.a. charged? What should my next move be?

Wywth

neilem wrote: »

My account which is primarily used for trading is based in Luxembourg, but they have offices in UK and various other locations around Europe.

They have multiple sub-accounts for different currencies (international trading). When I originally setup my account I wanted the dollar sub-account and requested as such, unfortunately this was done over the phone (verification phonecall). So I traded in dollars in American companies, but my capital was in the GPD subaccount, so effectively I was taking money out of a sub-account without any money there. This obviously draws a penalty.

So my capital is sitting in another account untouched, and I am receiving a debit interest which is accrued daily, since the dollar sub-account has a negative balance (10.4% p.a.) - all without my knowledge (sure, I could have checked on the website if I had known). The only notification to alert me was by email on the 14th August, the sub-account first went in the red on 28th May.

They said they would lower the p.a. charged to 6.8%, which lowers it slightly, but not really enough to put a dent into the total penalty charge. Do I have a leg to stand on? should I accept the lower p.a. charged? What should my next move be?

Why have you got a Luxembourg based bank account?

Why don't you get a UK based account?

I suggest in the circumstances, you find a lawyer that specialises in Luxembourg law (assuming that is the legal jurisdiction of the terms of the contract you entered into with the bank)

neilem

Wywth wrote: »

Why have you got a Luxembourg based bank account?

Why don't you get a UK based account?

I suggest in the circumstances, you find a lawyer that specialises in Luxembourg law (assuming that is the legal jurisdiction of the terms of the contract you entered into with the bank)

It's with TD Direct, someone on here recommended them for US stock trades. Luxembourg is where the bank is located.