Removing an agreed overdraft in error - Advice please

Zooneycat

I was wondering what people think. I have had my bank account effectively frozen 3 times in 12 (Or 7 banking days) days by error. Basically, my agreed overdraft gets removed in its entirety with no warning.

First time was on Boxing day - account operating again on 29th Dec, second time was day before my Daughter's birthday (I went to buy her a balloon and candles!), which wasn't rectified until 5pm 4th Jan, by which time they'd bounced 4 DD's. Then frozen again on 7th Jan, rectified on 8th. I only found out it had been removed for the 3rd time when I was trying to pay a DD they'd bounced on the Monday! I was about to go food shopping after paying off the DD, so of course I couldn't.

I have an agreement in place to reduce my overdraft each month. This hasn't been a problem for the last few months, but after speaking to them on 23rd December, somebody did something to my account, which removed my agreed overdraft every few days, effectively freezing my account, so no funds available.

My bank offered me £50 compensation the first time, £100 the second time ( I accepted these, as I was assured it wouldn't ever happen again), but now they have come back with £250 for the last time. I haven't accepted it as yet. I am terrified they're going to do it again. I now have to carry a small amount of cash on me at all times now, just in case they've done it again. When they remove the overdraft, and then reinstate it, I cannot use my card until the next working day. So it's been massively inconvenient, especially given it was over the Christmas and new year period.

There has been an in depth investigation into how this happened, and it's been concluded that it was human error on all 3 occasions. Not only have they managed to screw up my online account, but they even sent out a letter outlining my overdraft terms, with an agreed overdraft level set as £0, and reducing terms of £100 a month. How does that work?!

Do you think this is an acceptable level of compensation? I don't know whether to accept it or not. I can refer it to the FSA.

SeduLOUs

I'd put some money into a different account or get a credit card out (or if you have neither, a reasonable sum of cash) to ensure you aren't relying on this bank account to get by day to day, and then I'd let them carry on doing what they are doing.

At the rate the compensation amounts are escalating (£50, £100, £250) you'll be quite rich by the time they finally sort it out.

paragon909

Have you ever thought about putting money into the account to cover bills instead of relying on credit, If you have bill any responsible person makes sure they have the money to cover it.

The level of compensation is take responsibility for you're own banking and bills.

Zooneycat

Thanks for the replies.

I got myself into debt. I'm trying to get myself out of it, hence why I am reducing the overdraft. At the time when they bounced my DD's, I should have had over £800 available funds. My DD's amounted to £250.

I don't have a credit card. I'm trying to pay those off too. I'm looking at moving accounts, as this has become a joke, but my credit rating isn't great due to the credit cards.

Archi_Bald

Zooneycat wrote: »

I'm looking at moving accounts, as this has become a joke, but my credit rating isn't great due to the credit cards.

There is a new generation of basic accounts that are available to people with a bad credit history. One main characteristic of these accounts is, however, that they do not come with any overdraft facility. E.g. Nationwide FlexBasic

Zooneycat wrote: »

I can refer it to the FSA.

You can't, for two reasons:

1. the FSA does not longer exist, and they never dealt with consumer complaints
2. the consumer complaints body is the Financial Ombudsman Service (FOS)

You can contact the FOS any time you like but you need to give your bank up to 8 weeks to sort out the formal complaint you have to make to them.