New Natwest arranged overdraft fee

splitpin2011

I opened my current account as a student account in 2001 with a fee and interest free £2,000 overdraft limit. Since graduating the account reverted from a student account to a current account with no monthly fees and the overdraft remained with just interest to pay.

Over the years Natwest have tried to get me to surrender this account and 'upgrade' to a fee paying account with benefits I don't want or need. I have always refused.

I checked my account online yesterday to find that they have now started to charge me a fee of £6 per month if I go into my overdraft, which I did briefly once.

I understand that I am relatively lucky to have a fee free account, however, they have begun charging me for an arranged overdraft which was already included as part of my account.

I went into my local branch and was told it was the same for everyone and I could upgrade my account to eliminate these fees.

I do not feel Natwest have the right to start charging me for an arrangement which was free. Where do I stand on this?

dunstonh

I do not feel Natwest have the right to start charging me for an arrangement which was free. Where do I stand on this?

Natwest and you are both constrained by the T&C of the account. Natwest have the right to amend T&Cs by providing you notice of any changes. You say you were a student in 2001. It is unlikely that 12 years later that you are still a student. So, at some point, you would have ceased to qualify for a student account and would have been moved to a standard current account or a packaged account (as you declined packaged - i have too as do many others - then the standard current account would apply).

splitpin2011

Thanks for the response.

As I said, between graduating (2004) and up until recently the account was defaulted to a standard current account, maintaining the £2,000 arranged o/d but without any fees attached to the account. Now, suddenly, they have decided to charge me a fee, for a previously fee free arrangement, on a standard current account that has not changed since 2004.

Well I suppose they can change their terms as easily as I can change my bank!

TheMoney

That would depend on how they charge for overdraft use. Some banks charge interest, some charge a set fee.

Atidi

splitpin2011 wrote: »

Thanks for the response.

As I said, between graduating (2004) and up until recently the account was defaulted to a standard current account, maintaining the £2,000 arranged o/d but without any fees attached to the account. Now, suddenly, they have decided to charge me a fee, for a previously fee free arrangement, on a standard current account that has not changed since 2004.

Well I suppose they can change their terms as easily as I can change my bank!

They would have been required to advise you in advance of any changes to their terms and conditions, and you can reject such changes, but that means they will close your account with them. So yes, ditch & switch is the way to keep in control.

If this is your first time you have been charged, or even the first time in years, then a simple call should see the fee waived/refunded as a goodwill gesture.

splitpin2011

Well I have found a current account with a different bank. This one has all the perks relevant to me for a tiny monthly fee.

So I really have to thank Natwest for giving me the incentive to look elsewhere!

Thanks for your interest and input in this thread.