Am I being wrongly charged by my bank?

mrecuk

Last month a Bill came out unexpectedly early from my account. As a result of this it made me go overdrawn. I could not settle the debt before the 3:30pm grace period that Lloyds give you to settle any overdrafts before they incur any charges and because I don't have an overdraft the money was returned to my account which incurred a returned item fee of £10 which is fine.

The problem I have is that I have also been charged a £5 unplanned overdraft fee and a £6 overdraft usage fee on top of the £10 returned item fee.

A) Can they charge me for an unplanned overdraft fee and an overdraft fee?

it says on their website that if they don't approve an unplanned overdraft then the money will be returned to my account incurring a £10 returned item fee (which I got and I accept), having said that, if they rejected an unplanned overdraft (which they clearly have as they've charged me the returned item fee and not allowed me to have an unplanned overdraft) why have they then charged me for using an unplanned overdraft (and for some reason an I overdraft fee) as well.

I just can't work it out. Is it just me being dopey or have they wrongly charged me? If someone could explain it I'd be rather greatful!

colsten

Difficult to comment without seeing all the transactions on your account. Overdraft charges are generally for the month prior to the last, so you need to go back to your previous statement in which they should have advised that you will be charged.

If you can't find the transaction(s) that made you overdrawn, best if you take your question to Lloyds - they need to be able to explain to you what exactly the overdraft charge relates to.

YorkshireBoy

Malcnascar wrote: »

Just a thought, was the bill claimed under a direct debit arrangement? If, as you say, the direct debit was claimed early then you have a case to ask the originator to reimburse you for the charges you incurred. The originator has to sign up to direct debit guarantee which is there to protect the consumer against errors etc. Google Direct Debit Guarantee and see if you have grounds for a claim.

Probably better to approach the bank, since they're bound by the PSRs to put you back in the position you'd have been in had the "unexpected" DD not been presented...and that includes correcting any negative CRA data reported by the bank, which the DD originator obviously won't be able to do..

GingerFurball_2

mrecuk wrote: »

Last month a Bill came out unexpectedly early from my account. As a result of this it made me go overdrawn. I could not settle the debt before the 3:30pm grace period that Lloyds give you to settle any overdrafts before they incur any charges and because I don't have an overdraft the money was returned to my account which incurred a returned item fee of £10 which is fine.

The problem I have is that I have also been charged a £5 unplanned overdraft fee and a £6 overdraft usage fee on top of the £10 returned item fee.

A) Can they charge me for an unplanned overdraft fee and an overdraft fee?

it says on their website that if they don't approve an unplanned overdraft then the money will be returned to my account incurring a £10 returned item fee (which I got and I accept), having said that, if they rejected an unplanned overdraft (which they clearly have as they've charged me the returned item fee and not allowed me to have an unplanned overdraft) why have they then charged me for using an unplanned overdraft (and for some reason an I overdraft fee) as well.

I just can't work it out. Is it just me being dopey or have they wrongly charged me? If someone could explain it I'd be rather greatful!

a) Yes. You are charged £6 for overdraft usage if at any time during a monthly billing period you use an overdraft facility, whether agreed or not.

b) To be charged £5 in unplanned overdraft fees, your account would have had to have been £10.01-£24.99 over your agreed limit for a period of 1 day. Did you have any debit card transactions take place either the day before, or after, the direct debit which bounced? Or had you gone overdrawn at any other point during the month? If this is a charge that went out yesterday, then check your statement between the 3rd of February and the 2nd of March.

If it's the first time this has happened then just call up and ask for a refund.

Lloyds_Bank

mrecuk wrote: »

Last month a Bill came out unexpectedly early from my account. As a result of this it made me go overdrawn. I could not settle the debt before the 3:30pm grace period that Lloyds give you to settle any overdrafts before they incur any charges and because I don't have an overdraft the money was returned to my account which incurred a returned item fee of £10 which is fine.

The problem I have is that I have also been charged a £5 unplanned overdraft fee and a £6 overdraft usage fee on top of the £10 returned item fee.

A) Can they charge me for an unplanned overdraft fee and an overdraft fee?

it says on their website that if they don't approve an unplanned overdraft then the money will be returned to my account incurring a £10 returned item fee (which I got and I accept), having said that, if they rejected an unplanned overdraft (which they clearly have as they've charged me the returned item fee and not allowed me to have an unplanned overdraft) why have they then charged me for using an unplanned overdraft (and for some reason an I overdraft fee) as well.

I just can't work it out. Is it just me being dopey or have they wrongly charged me? If someone could explain it I'd be rather greatful!

Hi mrecuk

You're absolutely correct to state that no unplanned overdraft fee will be applied in relation to a Direct Debit being returned to your account. However, the fact that you've received this charge may suggest that you've used an unplanned overdraft at a different time in the same month.

As another user has already stated, overdraft charges debit in the second calendar month after using the overdraft i.e. if you've received these charges in April, they'll relate to overdraft-use in February.

If you're unsure what may have caused this, or if this isn't the case & you believe we've made an error, please give one of my PhoneBank colleagues a call on 0345 3000 000/01733 347 007. They’ll be able to access your account & clarify what’s happened.

Thanks,

Graeme

Mrbowie

Hi just checked my bank Lloyd's, and I have been charged nearly £10 overdraft fees for the last 2 months even tho I havnt touched my £100 planned overdraft I don't think I should be be charged just for having the facility should I? Thanks

Archi_Bald

If you have not used your overdraft, you should not be charged. What did Lloyds say when you asked them what the charges are for?

Mrbowie

I havnt rang then yet thought I'd double check on here if I'm right first. I have had and used an overdraft previously and was charged which was correct, but 2 months ago I paid my overdraft off but kept the faculty to have a £100 overdraft in case if emergencies but have definatley not used it. Thanks I'll ring them later

slink85

Mrbowie wrote: »

I havnt rang then yet thought I'd double check on here if I'm right first. I have had and used an overdraft previously and was charged which was correct, but 2 months ago I paid my overdraft off but kept the faculty to have a £100 overdraft in case if emergencies but have definatley not used it. Thanks I'll ring them later

im confused, if you have an unused overdraft, why was the DD returned? if presumably your overdraft would have covered the payment.

jimjames

slink85 wrote: »

im confused, if you have an unused overdraft, why was the DD returned? if presumably your overdraft would have covered the payment.

Someone piggybacking on an old thread, no link to the OP.

jonesMUFCforever

Mrbowie wrote: »

Hi just checked my bank Lloyd's, and I have been charged nearly £10 overdraft fees for the last 2 months even tho I havnt touched my £100 planned overdraft I don't think I should be be charged just for having the facility should I? Thanks

Check your account from 3 and 2 months ago - the second page of the statement tells you what the charge is for and when it will be debited.