Abbey-Instant Overdraft Request Fee

BR34095

I am not sure if this has been mentioned elsewhere but if not I think it should be looked at carefully. Today (06 Aug 07) I have received a VERY disturbing letter from the Abbey, setting out new charges to come into effect soon. One major change is the INSTANT OVERDRAFT REQUEST FEE. I will quote from their literature.

"We will treat you as having asked for an Instant Overdraft if you request to make a payment which would cause your account to go overdrawn without an Advance Overdraft in place or cause your account to go over your existing Advance Overdraft limit. Different service fees and interest rates will apply.
An Instant Overdraft Request Fee will be payable by you each time you request an Instant Overdraft and regardless of whether we agree to give you the Instant Overdraft requested. Payment of the Instant Overdraft Request Fee may result in you becoming overdrawn (or, if you already have an overdraft, further overdrawn) even if we do not agree to give you the Instant Overdraft you asked for."

Charges are set out as follows

0 to 9.99 BPS "requested" charge of 5.00 BPS
10 to 19.99 BPS....10.00BPS
20 to 29.99 BPS....25.00BPS
30+BPS...............35.00BPS

Oh yes, and a Instant Overdraft Monthly Fee of 25.00 BPS

Hey folks, its not a punitive charge, it's a fee for asking for it!!!
Back Door Bank Charges!!

An example is given
No Advance overdraft on your account. Cheque paid causes you to go 12.00 overdrawn. Next day a card payment for 8.00 makes you 20.00 overdrawn. Next day a DD for 200.00 puts you 220.00 down. Charges as follows

Instant Overdraft Request Fee (IORF) for the cheque 15.00
IORF for the card payment......................................5.00
IORF for the DD...................................................35.00
Monthly Fee........................................................25.00

Total.................................................................80.00

And if they had rejected the DD for example, you would still be charged the 35.00 for "ASKING" for it.

I cannot believe the cheek they have for attempting this.
Martin, PLEASE look into this for us!!

toniq

wow,

That sounds like some back street loan provider!

Is that beacuse you have annoyed them byclaiming charges and they have put terms on your future banking?

Id bank elsewhere.

regards

BR34095

No, THIS IS TERMS AND CONDITIONS NOW FOR ALL ABBEY CUSTOMERS. All Abbey customers will be recieving notification in the post soon, if they have not already got it.

Yes I have annoyed them. They have not refunded ALL of my charges, cancelled my overdraft, closed my Internet access, and put a debt collection agency on me, even though my acount is now overdrawn less than my oversraft was!!
I am going to fight on, I look forward to them taking ME to court for the money. I would love a chance to explain to a judge what has happened!

toniq

Its disgusting the lengths banks will g to.

I wish you much much much luck, i claimed from natwest and had a parachute acct which was up and running for my day to day stuff before the claim was settled , so i escaped their wrath!

Let me know how you get on.

toni

ianeverton

I can confirm this applies to all current account holders.

I have never incurred charges so have no reason to claim anything from them but i have received notification of changes to terms and conditions.

I just love their terminoligy to try and make it appear as though it is not a "fine" for going over your overdraft.

BR34095

That is just the point. I am sure that Abbey and all other banks are sure of the inevitable, and are changing this to get araound the law as it is now and as it will be. If they can say it is not punitive, they can try to say it is justified and LEGAL. I am sure all other baanks WILL follow suit. This must be brought to more peoples attention, and fought somehow, as the banks will win if they are allowed to. I am sure that it could somehow be shown that this is just the same charges by a different name, and just as illegal if the pressure groups and the OFT act on this now?

nickmack

BR34095 wrote: »

This must be brought to more peoples attention, and fought somehow, as the banks will win if they are allowed to. I am sure that it could somehow be shown that this is just the same charges by a different name, and just as illegal if the pressure groups and the OFT act on this now?

It's been a tactic for a while since people started reclaiming. Banks are trying to 'disguise' the penalty, by pretending it's a service charge.

Even the courts are aware, but it remains to be seen, whether they'll be allowed to get away with it.

wisbech_lad

Seems OK. People never bothered much about bank charges (i.e. moving banks) before it was thought they could be reclaimed. So if the banks can repackage them in a legal format - why not?

964rh

We got this as well, imoh its just Abbey introducing new 'laws' to suit them.

Surely they shouldn't be allowed to do this with the OFT test case thing happening? It looks like they know they were in the wrong so now just introduce something that makes it even more of the customers fault!

Next it will be you have gone od by 0.01p so I'm going to send my Dad round cause he's bigger than yours!!!!

BR34095

I am not an expert by any means, but this bit about, "An Instant Overdraft Request Fee will be payable by you each time you request an Instant Overdraft and regardless of whether we agree to give you the Instant Overdraft requested." Is that legal?
Can a charge be put on a service they have NOT provided?
Next we will have the plumber coming round, being asked to fix the leak, saying no and charging us a fee for us asking him to do it!! (Cos it is in his terms and conditions that he can)

wisbech_lad

BR34095 wrote: »

I am not an expert by any means, but this bit about, "An Instant Overdraft Request Fee will be payable by you each time you request an Instant Overdraft and regardless of whether we agree to give you the Instant Overdraft requested." Is that legal?
Can a charge be put on a service they have NOT provided?
Next we will have the plumber coming round, being asked to fix the leak, saying no and charging us a fee for us asking him to do it!! (Cos it is in his terms and conditions that he can)

That's called a call out fee... Pretty standard. You call a technician, but they can't fix the problem, still need to pay a call out fee.