My bank Changed the goalposts to charge me more?

MAFFEWS

Hi, Im new here, i hope im posting in the correct place?

Basically im looking for some advice on my bank charges.
Im with a well known bank, i had a student account with them for a number of years, and i am currently paying off my overdraft.
When i first got the account i was given a £300 overdraft which i extended to £700 a year into my studies. My student loan was paid into this account throughout university and of course i left the account minus £696.01 when i left university. I was jobless so account defaulted and was passed to a credit collection agency.
I recently decided to get my finances in order, since i now have a job. But to my horror the amount owed is now £947?? I requested my statments from the bank, which i received, all statments since my overdraft increase state:

credit interest rates : 0.1000%
arranged overdraft interest rates: 0.000%
unarranged overdraft interest rates : 20.500%
arranged overdraft limit : £700

HOWEVER my final statement (6 month statement) states:

credit interest rates : 0.1000%
arranged overdraft interest rates: 0.000%
unarranged overdraft interest rates : 20.500%
arranged overdraft limit : £695
(MY ARRANGED OVERDRAFT HAS BEEN REDUCED BY £5, I AM NOW OVERDRAWN ON AN OVERDRAFT)

Remember i am being charged £300 interest on a £696 overdraft, To me it appears the bank has manipulated my approved overdraft limit in order to charge me interest for an unapproved overdraft?? Can they just reduce my approved limit so that i can be charged more? is this legal or am i missing something in the small print??

If someone can explain this i would be greatful.
Thanks

BMN

Yes they can change your overdraft limit.

Can I just clarify a few things though.
When did the arranged overdraft limit change to £695?
Did you keep your address details up to date with the bank? Did you receive any correspondence regarding this?
When did the account default?

Atidi

MAFFEWS wrote: »

Hi, Im new here, i hope im posting in the correct place?

Basically im looking for some advice on my bank charges.
Im with a well known bank, i had a student account with them for a number of years, and i am currently paying off my overdraft.
When i first got the account i was given a £300 overdraft which i extended to £700 a year into my studies. My student loan was paid into this account throughout university and of course i left the account minus £696.01 when i left university. I was jobless so account defaulted and was passed to a credit collection agency.
I recently decided to get my finances in order, since i now have a job. But to my horror the amount owed is now £947?? I requested my statments from the bank, which i received, all statments since my overdraft increase state:

credit interest rates : 0.1000%
arranged overdraft interest rates: 0.000%
unarranged overdraft interest rates : 20.500%
arranged overdraft limit : £700

HOWEVER my final statement (6 month statement) states:

credit interest rates : 0.1000%
arranged overdraft interest rates: 0.000%
unarranged overdraft interest rates : 20.500%
arranged overdraft limit : £695
(MY ARRANGED OVERDRAFT HAS BEEN REDUCED BY £5, I AM NOW OVERDRAWN ON AN OVERDRAFT)

Remember i am being charged £300 interest on a £696 overdraft, To me it appears the bank has manipulated my approved overdraft limit in order to charge me interest for an unapproved overdraft?? Can they just reduce my approved limit so that i can be charged more? is this legal or am i missing something in the small print??

If someone can explain this i would be greatful.
Thanks

Have you asked the bank?
They would presumably be the best people to explain this to you.

SomebodyToldMe

I would ask the Bank to explain the charges, then check statements for how much they charged when you were unemployed- you can claim these charges were unfair.
If they don't refund you the money- get Financial Ombudsman involved IMHO.
Good luck

Atidi

SomebodyToldMe wrote: »

I would ask the Bank to explain the charges, then check statements for how much they charged when you were unemployed- you can claim these charges were unfair.
If they don't refund you the money- get Financial Ombudsman involved IMHO.
Good luck

You can claim what you like ... but such a claim will almost certainly receive short thrift ... IMHO

The FOS won't help in such a claim; it's not their role.

antrobus

MAFFEWS wrote: »

..... I was jobless so account defaulted and was passed to a credit collection agency...

If a borrower defaults on an overdraft, I'm not so sure it matters what the original limit was.