Yorkshire Bank Overdraft Charges

Alik8

I have today received a letter saying that I will be charged £6 for using an authorised overdraft limit of £50. Apparently they changed the charges in December so that you can have £25 free of charge, then you get charged £6 for anything over this. The information I have received today reads "Monthly Planned Usage Fee - This is the fee you incur once every calendar month if you end any business day overdrawn by more than the buffer amount (unless that position was created by us adding fees or interest). Please refer to your account tariff for further information"

Now I have always understood that a buffer is anything for going OVER an agreed limit. £6 seems excessive for using what the bank has agreed for me to use, and for £50. Does anyone have any advice/similar experience? I'm really not happy about it!

DCFC79

Complain about it or move banks if you don't like it.

Dont go overdrawn then you won't need to pay the fee.

MARTYM8`

Alik8 wrote: »

I have today received a letter saying that I will be charged £6 for using an authorised overdraft limit of £50. Apparently they changed the charges in December so that you can have £25 free of charge, then you get charged £6 for anything over this. The information I have received today reads "Monthly Planned Usage Fee - This is the fee you incur once every calendar month if you end any business day overdrawn by more than the buffer amount (unless that position was created by us adding fees or interest). Please refer to your account tariff for further information"

Now I have always understood that a buffer is anything for going OVER an agreed limit. £6 seems excessive for using what the bank has agreed for me to use, and for £50. Does anyone have any advice/similar experience? I'm really not happy about it!

Get your money back - by opening another account elsewhere and doing a switch to YB?:D

PaulW922

It is a new charge they have introduced and whilst it is not especially good value we got plenty of notice so all you can really do is stay in credit or go elsewhere. The 'buffer' is whatever the bank says it is. As long as it is clear I don't think there is much you can do other than vote with your feet.

thebritishbloke

MARTYM8` wrote: »

Get your money back - by opening another account elsewhere and doing a switch to YB?:D

Heck, you could spend 25 months in your overdraft and one switch would cover the fee. Not a bad deal! I think YB are trying to recoup some of the money they've lost through Switches haha.

Alik8

PaulW922 wrote: »

It is a new charge they have introduced and whilst it is not especially good value we got plenty of notice so all you can really do is stay in credit or go elsewhere. The 'buffer' is whatever the bank says it is. As long as it is clear I don't think there is much you can do other than vote with your feet.

I appreciate that, however reading the information, it is rather misleading. A buffer to me is is you go over an agreed limit by mistake and the bank is trying to help by limiting the excessive charges. I used to work for the bank, and I definitely would not have been happy putting a limit on an account with these fees! I now know why I left! I may very well switch, and I never thought I'd say that...

colsten

Alik8 wrote: »

Now I have always understood that a buffer is anything for going OVER an agreed limit.

That's correct, and the overdraft information on the YB website confirms this

Planned borrowing
Planned borrowing is when you have agreed an overdraft limit on your current account with us in advance. If you have agreed planned borrowing with us you may be subject to the following:

Monthly Planned Usage Fee will be charged once every calendar month if you end any business day overdrawn by more than the planned borrowing buffer amount.

Interest will be charged at the rate shown in your account tariff.

The Planned Borrowing Buffer Amount means you can be overdrawn by up to the planned borrowing buffer amount before you incur the Monthly Planned Usage Fee.

I can't see anything misleading.

GaryAnderson

I think the best action for you to take is to complain with the bank. From your post I see you say 'apparently' the charges changed, if you were not made aware of these changes, tell them. Fill out an online complaints form if your unhappy with the charges or contact the customer services team - it's worth it, you will probably get the charges reversed, I'd be surprised if they don't.

System

They are simply following many of the other major banks in applying a fee in addition to interest from December last year.

To be fair, they reduced their £35 penalty fees to £15 at the same time.

The Clydesdale & Yorkshire fee structure is identical.