MSE News: Got a Santander current account? Find out if fees shake-up affects you

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  • jay29mcr
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    Herbalus wrote: »
    If you know about these charges, why would you and your wife not check your balance and allow the account to be overdrawn over your agreed limit for over two weeks?!

    Most bank accounts have charges that are bad news if you're not keeping track of your money.

    She put £80.00 in it previously to take it under the agreed overdraft limit but the charge was still added so it put it over again.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    As annoying as these charges are, as unfair as they seem, and with APRs (if they were calculated) way higher than payday loans they have been challenged through the courts and the case fell apart. So they're here to stay.

    There are two ways to avoid them.
    1. Keep within the limits.
    2. Ask nicely for the charges to be removed or reduced as a goodwill gesture.


    1. We sometimes have a low balance in Halifax and First Direct. As you say, with First Direct it doesn't really matter if you go overdrawn. But when our Halifax account is low I try to check it daily to make sure it doesn't go overdrawn. (Halifax charge similar fees to Santander.)
    I know this doesn't help you with what has happened in the past, but at least it can be something to be aware of for the future.

    2. Always worth a try to ask them nicely. If the charges have been applied correctly according to the terms and conditions (which it sounds like they have) then there is no point going in all guns blazing.
    But if you are nice and polite, remind them what a good customer you have been then they will probably refund the fees the first time it happens.
  • colsten
    colsten Posts: 17,597 Forumite
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    jay29mcr wrote: »
    Santander has to be the worst bank in the UK.
    News out today: Almost 4 times as many accounts were moved to Santander in Q2 2014, compared with their nearest rival. This doesn't sound like the UK's worst bank to me.
    http://www.paymentscouncil.org.uk/media_centre/press_releases/-/page/3177/
    jay29mcr wrote: »
    The charges are tantamount to criminal in that if you are even £1 above your agreed overdraft you are charged £6 per day with no cap from August 2014.
    Criminal would be if they were breaking any law - which they don't unless you know differently?

    The cap per statement period on the Everyday account is £150. Going into an unarranged overdraft is asking for trouble and charges - and why do it when the charges are clearly published?

    jay29mcr wrote: »
    My wife has (unfortunately) been with Santander for over 10 years
    so she has little excuse for not knowing the charges structure, and the tools available for managing er account (e.g. text messages when certain limits are reached etc)
    jay29mcr wrote: »
    We have tried to contact the bank to request a freeze or close the account and pay the £300 agreed overdraft as a debt but they threatened to sue us if we did that.
    They will not take you to court if you settle your overdraft. Simply not credible what you are saying there.
    jay29mcr wrote: »
    As you can probably understand these types of charges are just not realistic for a long time customer who is currently receiving benefit but this particular bank just will not listen.
    charges are the same for all customers
    jay29mcr wrote: »
    How do i resolve this issue with Santander
    If it is the first time your wife got into an unauthorised overdraft, she can politely ask whether they would waive the charges for her. Going in all guns blazing won't help.

    Hop over to the Debt Free Wannabe board to get some help with your debts.
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    colsten wrote: »
    Criminal would be if they were breaking any law - which they don't unless you know differently?
    They said tantamount to criminal. Not actually criminal.

    Borrow £1 of your overdraft for a week and you have to pay £7 (plus pay the £1 back).
    If you borrowed £1 from a payday lender for a week it would be against the rules for the lender to charge you more than £1 (plus pay the £1 back).

    I understand that overdrafts aren't covered by these rules so the banks aren't breaking the law. But it is virtually the same, so I think "tantamount to criminal" is a reasonable phrase for them to have used.
  • colsten
    colsten Posts: 17,597 Forumite
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    I never understand why people don't simple treat overdraft charges as a deterrent.

    If, in an exceptional situation, you need more than your arranged overdraft, ask for a higher overdraft. If your credit history is considered good enough for further credit, you will get it.

    Although, as in the case of jay29mcr, asking for a higher overdraft would probably be counter-productive, as he says they have already got problems paying back their existing debts.

    It all comes back to living within your means.
  • TigersEye
    TigersEye Posts: 184 Forumite
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    jay29mcr wrote: »
    Not those on the everyday current account.

    I agree with you worst bank ever:mad::mad::mad:
    I am at a Crossroads in my life and deciding which path to take:coffee:
  • Herbalus
    Herbalus Posts: 2,634 Forumite
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    TigersEye wrote: »
    I agree with you worst bank ever:mad::mad::mad:

    If those who say it's the worst bank ever have incurred large charges, and those like me who disagree have been paid £hundreds in interest, it actually all boils down to who gets the most out of it, and those who use the published terms to their advantage who win. It's got less to do with the account and more to do with how you deal with your affairs.

    I don't mean that horribly. I mean that as an encouragement to get the most out of what you've got.
  • MikeBer
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    I didn't watch my account like a hawk, and so...

    I had a small balance in my Santander Current Account as my TV License (£12/month) was coming out of it by Direct Debit. No other activity... except for the £1/day "overdraft arrangement fee". Now I suddenly find myself >£300 in debit!

    This fee is grotesquely out of proportion and Santander should be ashamed for their money-grabbing. Why isn't the Financial Ombudsman (or ?) looking out for the customer?
  • dingdong3000
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    I guess people with no overdraft does not get affected by these changes.
  • eskbanker
    eskbanker Posts: 31,561 Forumite
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    MikeBer wrote: »
    I didn't watch my account like a hawk, and so...

    I had a small balance in my Santander Current Account as my TV License (£12/month) was coming out of it by Direct Debit. No other activity... except for the £1/day "overdraft arrangement fee". Now I suddenly find myself >£300 in debit!

    This fee is grotesquely out of proportion and Santander should be ashamed for their money-grabbing. Why isn't the Financial Ombudsman (or ?) looking out for the customer?
    Why isn't the customer looking out for himself, he's the one either getting the monthly statements or the ability to keep an eye on his account online, plus SMS alerts, etc?
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