Reeling from the Reality Check

Historybuff

Just checked old current account and have found that despite agreeing to freeze charges and interest, the bank have ADDED £95 of charges and interest! So in effect the overdraft has gone up £45 instead of reducing by £50 and they are going to reduce the overdraft limit by £50! How do they work that out! So by going on the payment plan to try to reduce my overdraft it is just going to grow bigger! And they have the cheek to put in writing that they are HELPING me reduce my overdraft! I'm speechless!

hohum

Historybuff wrote: »

Just checked old current account and have found that despite agreeing to freeze charges and interest, the bank have ADDED £95 of charges and interest! So in effect the overdraft has gone up £45 instead of reducing by £50 and they are going to reduce the overdraft limit by £50! How do they work that out! So by going on the payment plan to try to reduce my overdraft it is just going to grow bigger! And they have the cheek to put in writing that they are HELPING me reduce my overdraft! I'm speechless!

Oh hate and loathe. Do they have the new daily charges? They are evil.

Over the years my bank has 'helped' me by: selling me a credit card when I was a student; trying to sell me ppi when I was not eligible to claim (never took it!); tried to persuade me to take a loan to clear my overdraft when I was in insecure employment; bought me in for an. 'Account check' which actually was about trying to sell me contents insurance; kept me spiralling by adding charges on top of charges...they unfortunately will not do the gradual balance reduction without rescoring.

I also know that their employees have to ask me if I want crappy products I don't need when I come in to use their services, otherwise they will face concerns over their performance.

This is why adverts featuring the words 'helpful banking' make me want to hurl the TV out of the window

Anyway, ranting over...are you self managing your debt repayment ? Am just thinking one of the debt charities probably have lots of experience of this and evidence that your bank are not playing fair. Maybe chat through with one of the charities to give you a boost to write the next letter ? So very boring having to keep arguing with them but you're totally right to keep on.

Historybuff

Thanks Hohum, they really take the biscuit. I've even sent them a statement of account showing how much I can afford to pay them and told them all the other creditors have frozen interest and charges. Why do they think they can do this. The overdraft will just spiral and get bigger! 'Helping' me, I don't think so, helping themselves more like!

tootallulah

And that is why you are fighting so hard to be debt free, you will beat the bank. I would write immediately and also copy the banking ombudsman, that usually helps them see reason. Brilliant news on the car boot.

Eager_Elephant

Hi HB

Just did a trawl on the diaries and yours looked interesting so I have had a quick read.

I think the reason the charges have gone on is because you were probably notified of them 28 days ago and they have gone on as normal.

The arrangement you set was only confirmed on 28/4 so I think these charges will still be applied but no more after that - I agree with the advice to write and ask for them to be removed especially as you gave them fair warning when you were under the overdraft limit.

Unfortunately some debts will increase in the first few months of a DMP while the interest and charges stop.

It is also quite normal to get reminder letters, all of these will be automated. Most banks have to pass debts on to their debt collection arm and then on to another recovery arm and in the mean time all letters have to be sent no matter the arrangement so that it can move around the bank.
Be prepared for the debts to eventually go out to debt collection agencies as you will need to amend standing order details - debt agencies are best because they are the people that will be accepting full and finals which means you can clear your debt in a shorter time frame - Win, Win situation!!

Seasidegal58

So sorry to hear of all the aggravation just as you thought things were getting settled. Some excellent advice above from the posters. Also if you can't get any sense from the department you've been dealing with, a letter to the Chairman/CEO of the bank along wouldn't go amiss. He'll never see it, but his Private Office will and as the banks are trying hard to be everyone's friend (on paper at least), they'll wing it over to the department concerned and tell them to sort it out pronto!

Historybuff

Thanks all. I spoke to the bank today. They are going to refund the interest and charges made on the account and they confirmed that interest and charges will be suppressed for the term of the payment plan. They said it could take up to seven days to show on the account. I will wait that long and keep an eye on it. If it doesn't happen I will contact them again. In the meantime I will prepare a letter to send them if need be. Just shows you have to keep a tight rein on things and check carefully. Feel a bit better now.

Historybuff

Just checked online and interest and charges already refunded to one account, but not the other. I'll have to get on the phone again tomorrow to sort that out. But prompt action from the bank, so can't fault that. Feeling a whole lot better about it. Total is finally going down!

Historybuff

Still raining, so it's going to be a de clutter and clean day today. Tackling the kitchen/diner, utility room, hall, stairs and landing. Some furniture to shift and books to sort. Looking forward to this afternoon...I want to finish my book! Got another two from the market stall last Sat. Books are so much better than Kindle.
This evening I want to make space in my 'office' to get the table up and sewing machine out. Having a go at making envelope cushion covers from some lovely Smith and Smith material.
Thinking about my poor relatives who have gone on holiday on a narrowboat on the canal this week...so glad we decided not to go with them!

Historybuff

So been on the phone to the bank again to get the interest and payment plan sorted out on the other overdraft. After telling the whole story yet again they have agreed the charges and interest should not have been put on, but that I will need to keep a very close eye on each of the overdrafts as they start to reduce because if a payment is not received in time and I go over the limit I WILL be liable for the charges.
This should not happen because I have set up a standing order, but I will keep checking just to make sure.
This is why I decided to manage my own payment arrangements!