Disproportionate Bank Charges - advice

edwardajames

Hi all,

I am after a quick bit of advice with regards to what I view as slightly disproportionate bank charges. The situation is as follows:

I have an account with Natwest which has an arranged overdraft limit of £50. I took that £50, and used it. I did that late 2012. Nothing happened for ages. I thought I'd leave it.

Then, in September this year (over a year after I took out the £50 from the overdraft) I was charged .73p interest, which took me over the arranged limit. They then charged me the standard rate of £6 for unarranged overdraft usage. I didn't notice for roughly a week, by which time I had been charged a further £6 a day for being in the unarranged overdraft.

This month, having paid off the unarranged bit, I was charged another .75p interest, which started the cycle again, and didn't notice AGAIN. I fully accept this 'not noticing' business was my problem, but it's not an account I check regularly.

I have no paid off the entire lot back up to zero, but expect that there will be further charges next month.

I was wondering whether these charges were unfair and/or disproportionate considering the original offence was less than £1, yet the fine is many times that.

I've copied my current bank statement online below, which demonstrates the above.

Any advice on whether it's worth trying to get Natwest to give the charges back will be gratefully received. I realise it's not much money in the grand scheme of things, but it's still money I can't really afford...but if the consensus is that I should just not leave money in an overdraft and that I should suck it up, then so be it.

Thank you in advance,

Ed

DateOrder by Date Type Description Paid in Paid out Balance
2 Nov 2012 OTR CALL REF.NO. 0935 , TO A/C - 50.00 -£50.00
2 Sep 2013 INT 12AUG A/C - 0.73 -£50.73
2 Sep 2013 Charge ARRANGED OD USAGE , 12AUG A/C -6.00 -£56.73
6 Sep 2013 OTR CALL REF.NO. 0000 , FROM A/C 6.73 - -£50.00
3 Oct 2013 INT 11SEP A/C - 0.75 -£50.75
3 Oct 2013 Charge ARRANGED OD USAGE , 12SEP A/C - 6.00 -£56.75
3 Oct 2013 Charge UNARRNGED OD USAGE, 12SEP A/C -24.00-£80.75
11 Oct 2013OTR CALL REF.NO. 0984 80.75 - -

dunstonh

I fully accept this 'not noticing' business was my problem, but it's not an account I check regularly.

Yet you knew it was up to limit and would go over because of your transaction.

I was wondering whether these charges were unfair and/or disproportionate considering the original offence was less than £1, yet the fine is many times that.

Since the banks won the court case, there is no such thing as unfair charges.

Any advice on whether it's worth trying to get Natwest to give the charges back will be gratefully received.

You can play to their goodwill but that is what is required. They cant be forced by anyone to refund the charges and it will be up to them if they do. You must not under any circumstances say they are unfair or disproportionate though. Otherwise you will get the standard "we wont the court case" letter back in response.

edwardajames

I have to admit I knew it was up to -£50, but I also was under the impression it was £50 of interest free overdraft, or I was for a whole year until the first 0.75 interest deduction happened, which wasn't a deliberate transaction and I wasn't aware it would go over before it happened. That bit I find odd.

Yes, I've heard about the court case, but am unaware of the specifics and the guide on this website does suggest that 'disproportionate' charges may still be queried.

Thank you for your comments in any case. I get the impression it is unlikely they will be particularly sympathetic.

Atidi

edwardajames wrote: »

I have to admit I knew it was up to -£50, but I also was under the impression it was £50 of interest free overdraft, or I was for a whole year until the first 0.75 interest deduction happened, which wasn't a deliberate transaction and I wasn't aware it would go over before it happened. That bit I find odd.

Yes, I've heard about the court case, but am unaware of the specifics and the guide on this website does suggest that 'disproportionate' charges may still be queried.

Thank you for your comments in any case. I get the impression it is unlikely they will be particularly sympathetic.

What made you think the overdraft was interest and/or fee free?
If you have something in writing to that effect, contact the bank providing a copy (ensure you keep the original)
They should refund all the charges & fees.

Are you never paying anything into this account???
If not, why not? If you don't plan to pay anything into the account, I suggest you pay off what you owe and close the account.

edwardajames

I may have got confused. Nevermind. Thank you for the response. I had it initially as a bills and rent account when I shared a house, but have consolidated more recently.

Essentially I have now paid it off, and will close the account as you suggest.