Bank overdraft interest on dual accounts

Peanutsboss

I have multiple accounts with Nationwide and have found that if one account is overdrawn but the other is in credit, I am charged for the overdrawn account when overall the two accounts together add up to a credit balance, so overall I am not actually overdrawn but still being charged.

I want to claim back the interest charged on one overdrawn account when my two bank accounts have totalled a credit balance. I spoke to Nationwide this morning but they stated the charges are based on individual accounts and not the account holder. They stated that you could be overdrawn by £100 in one account but have a credit balance of £100,000 in the other and you would still be charged interest on the £100 overdraft. I think this is drastically wrong.

I also asked them to provide me with a breakdown of how these interest charges were calculated but they could not. They explained that charges are calculated by the system on a daily basis so there is no way they can provide me with details of the charges. So are consumers just meant to accept that interest charges on their account are correct? this seems to contravene consumers' rights.

If a consumer was charged an 'additional' fee on their restaurant bill but the owner was unable to provide a breakdown of the charge, I'm pretty sure the consumer would be able to have this charged removed.

Has anyone else had previous experience of the above? If so, I would be very interested to hear whether you managed to submit a successful claim and how consumers rights fare in these circumstances.

AliceBanned

They are two separate accounts so you will be charged interest on the overdrawn one.


Do you have online banking? If so it is easy to quickly transfer money across from one account to the other - that way you wouldn't be overdrawn on either account if you keep an eye on them and move money when you need to.


I can't answer the bit about the breakdown of charges but someone else may help.

Peanutsboss

Thanks for coming back to me.

I may just have to keep a more regular eye on the balances of my two bank accounts and ensure I transfer enough money across to cover any unexpected or larger bills.

It does seem a bit harsh to charge when one of the accounts is overdrawn but overall they are in credit but if there's nothing I can do to claim back the money I don't want to waste my time pursuing it….

Thanks

Alice_Walker

Why do you have multiple accounts? There may be a more effective way of achieving the same aim.

You can find out the relevant fees/ interest for your account on the website.

[Deleted User]

Peanutsboss wrote: »

I may just have to keep a more regular eye on the balances of my two bank accounts and ensure I transfer enough money across to cover any unexpected or larger bills.

This is called good money management and only you are responsible for it.

You cannot normally link two accounts which are operated separately regardless of which Bank you have them with.

Why do you keep two accounts? Is one for savings and one current?

You can request a breakdown of charges made to your account recently, but you won't be getting any back on the basis that you have money elsewhere I'm afraid.

Peanutsboss wrote: »

It does seem a bit harsh

Not really.
Keep both accounts in credit and you won't have this "problem"

ERICS_MUM

From an accounting point of view the bank needs to keep your accounts separate - the account in credit is included in the liabilities side and the overdrawn account in the assets side.

This is a Bank of England requirement.