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Bank charges

I've been a good boy for a few years and have lost track of any new laws or guidelines regarding bank charges. However my son is not being very good at the moment so I'm helping him sort out a few things.
One question so far. If the bank have to return a DD due to lack of funds then they slap on a bank charge. Now, if that bank charge puts the account o/drawn are they allowed to then charge for unauthorised overdraft ?
Thanks

Comments

  • dunstonh
    dunstonh Posts: 121,297 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    have lost track of any new laws or guidelines regarding bank charges.

    There hasnt been any changes in laws or guidelines since the banks won the court case many years ago.
    If the bank have to return a DD due to lack of funds then they slap on a bank charge. Now, if that bank charge puts the account o/drawn are they allowed to then charge for unauthorised overdraft ?
    yes

    Perhaps the best thing at this stage is educate your son to the requirement to have responsibility for his finances. Catch him now before he makes a big mess later.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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