Crazy Charges - Advice Needed

Mark_G

I have gone 4 transactions over my overdraft limit to a tune of £42.
My Bank (Bank Of Scotland) has charged me £30 for each transaction they paid + £28 monthly charge + interest, Totalling £148+ interest so far.
I get paid every friday, so this week coming there will be my pay less my overdraft in the account.
They told me that the charges will come out of my account on the 12/6, the day before I get paid, in between this I have 2 DD's due to come out of my account, they also told me the DD's would be paid before the charges were applied to the account.

So the knock on effect will be that the DD's will be paid, which then leaves me at my overdraft limit of £100, then they will apply the charges taking me over my limit, which then they will send me another letter saying that they will be charging me for each of the charges which took me over the limit.

How crazy is that!!

I asked to see the Manager to see if I could persuade him to drop the charges, as I am a single person, earning less than £200 a week and these charges would just snowball and I cant afford them, they said "no you shouldnt have gone overdrawn"
Which is a fair point, but when you are a low earner, sometimes it cant be helped. A bit of help would not go amiss from the banks sometimes.

So I have just filled out the template letter for claiming charges and I am handing it to them tommorow.

Which does'nt help me in the short term, so any suggestions??
I owe approx £9000 across 5 cards, I have no savings, £200 household income per week.

1 of the cards is linked to a loan that I had with the bank a few years ago, I could withdraw cash from that to help prop up my current account, would this be a good short term solution?

LozBingley

Mark_G wrote: »

How crazy is that!!

Very but its what happens to a lot of people

Mark_G wrote: »

Which does'nt help me in the short term, so any suggestions??
I owe approx £9000 across 5 cards, I have no savings, £200 household income per week.

1 of the cards is linked to a loan that I had with the bank a few years ago, I could withdraw cash from that to help prop up my current account, would this be a good short term solution?

Short term yes! Try to stop further charges coming out of your account and snowballing out of control. Also get all your charges back on any account you have had in the past 6 years (closed or open). Get a credit report if you can't remember how you've had accounts with. It should also show you the most likely accounts that had charges as they record your payment difficulties.

Finanlly, try to pay off your highest interest accounts first by over paying them! Don't just pay the minimum 2-3% a month aim for nearer 10% (if you can afford it) and budget your spending better. If this means getting a cheap ready meal, a couple of cans, and a dvd to watch on a Friday rather than going out with your mates for a drink and curry then this is the sacrifice you have to make. (oops hope that didn't offend anyone)

mo1_2

i was in the same situation not long ago,till someone told me to take more control over my money,my wages were being eaten up every week with bank charges and d d failing,the banks wont listen to you so i oened another account with another bank had my wages paid int that so they couldnt touch it,and reclaimed all my charges,hope this helps.

Mark_G

Thanks for the replies.

I don't drink anyway and only go out once in a blue moon, my only sin is that I smoke, but i been cutting down the last 2 weeks with a view (and will power) to stop by the end of july. Food wise I maybe spend £30 tops a month + essentials like milk and bread inbetween.

My main card i pay £100 into it every month which is about £40 more than the minimum, the rest I can only afford to pay the minimum.

I have been looking some of the forum threads on here, and I am going to contact my local council to see if I can get any help on housing and tax benefits. I already know that I am not entitled to working tax credit this year as last year I worked some overtime which took me over the limit.

Is there any other benefits I can consider trying to see I am entitled to?

Is it worth trying the Bank again and asking if they would consider waiving the charges for this time only.

I forgot to mention this is the first time in a year that I have used any of my overdraft.

GarethR

Mark_G wrote: »

Thanks for the replies.

I don't drink anyway and only go out once in a blue moon, my only sin is that I smoke, but i been cutting down the last 2 weeks with a view (and will power) to stop by the end of july. Food wise I maybe spend £30 tops a month + essentials like milk and bread inbetween.

My main card i pay £100 into it every month which is about £40 more than the minimum, the rest I can only afford to pay the minimum.

I have been looking some of the forum threads on here, and I am going to contact my local council to see if I can get any help on housing and tax benefits. I already know that I am not entitled to working tax credit this year as last year I worked some overtime which took me over the limit.

Is there any other benefits I can consider trying to see I am entitled to?

Is it worth trying the Bank again and asking if they would consider waiving the charges for this time only.

I forgot to mention this is the first time in a year that I have used any of my overdraft.

Id try asking them again & see what they say, if they take the same snotty attitude then I would tell them your going to claim them back through the Financial Ombudsman, they may change their tune then!

Halifax did this to me years ago, Im now getting revenge by claiming the lot back!

LozBingley

Mark_G wrote: »

I have been looking some of the forum threads on here, and I am going to contact my local council to see if I can get any help on housing and tax benefits. I already know that I am not entitled to working tax credit this year as last year I worked some overtime which took me over the limit.

Go for it! If you don't ask you'll never get it! Get all the money you are entitled to and the sooner you ask the sooner you can claim!

Good Luck