Annual Overdraft Review (A+L)

floppyhairuk

Has anyone else had their overdraft go through annual review, and had their limit lowered, I've had mine dropped from £2000 to £1000, in the first year it was interest free, so it was easier to live in Overdraft so I could pay the credit cards and loan off faster.

The £2000 overdraft limit was inherited when I switched to A&L a year ago, promising to match my overdraft

On wednesday I paid £200 to my blackhorse loan account, to help reduce it

As of thursday they reviewed my account, when I was £800 into my overdraft, they lowered it to to £1000 limit, the same day as £300 (3 x £100) of direct-debits left my account, - but they didn't, because my overdraft was £1000, so the DirectDebits bounced, and I got a nice £25 penalty charge.

I calmly rang A+L and they told me that they do not have to give any notice about a reduction in overdraft limit (because it's in the T&C), they don't have to remind customers about the annual review (because it's in the T&C). And they did post a letter after the event, to tell me they had done that, but because the postal strike, - no letter, no email, which as the postal strike isn't their fault, they don't care.

So now I have an over-agreed overdraft limit going on my credit record, and 3 failed direct debits going on my credit record.

Just as I was starting to pull out of the hole, I will now have £25(AL), £16(Egg Card), (£16 Egg Money) and £12 (Capital One) charges appearing, totalling £69 worth of charges.

Any advice, on this issue? Can I ask A&L to reconsider the charges, amend the overdraft or at least get them to give notice in future?

simongregson

Vote with your feet and change banks!

You have been responsible enough to arrange an agreed overdraft to cover your expected payments. It is not reasonable to charge for these bounced payments. The bank have a telephone, they should have phoned you, they are aware that there was a postal strike. If they had made an effort to contact you about reviewing your overdraft, you could have either paid in money to cover the shortfall or cancelled the direct debit payments

Crap customer service, although I'm sure some on here will bleat 'it's in the terms and conditions'. I assume that you have contacted them to ask for the charges back?

When you change banks, set about the process of reclaiming the charges from A&L, who will no doubt pay out once the OFT case is settled.

Milarky

floppyhairuk wrote: »

they told me that they do not have to give any notice about a reduction in overdraft limit (because it's in the T&C), they don't have to remind customers about the annual review (because it's in the T&C). And they did post a letter after the event, to tell me they had done that, but because the postal strike, - no letter, no email, which as the postal strike isn't their fault, they don't care.

Have you checked this for sure? Can you point out the term mentioning no-notice reductions?

djh1697

Ring them and ask for a form to close your account, they will (or should) pass you on to a retention team, they don't want to lose your custom.

Explain first you are closing the account because of the charges, when you have sorted that out, THEN ask them to reinstate your overdraft facitily

YorkshireBoy

djh1697 wrote: »

Ring them and ask for a form to close your account...

To which they'll reply..."certainly, just pay us the £800+ you owe us, keep a stable account balance for 10 working days, and we'll send you a cheque for the closing balance. Is there anything else we can help you with?"

YorkshireBoy

Milarky wrote: »

Can you point out the term mentioning no-notice reductions?

There isn't one in the standard T&C's Milarky. In fact they state...

21.7 You will repay everything You owe to Us when We ask for it. This includes both Your overdraft and any fees and/or interest that You owe. We will not ask You to pay an overdraft that runs for a fixed period before the end of that period, unless You have broken these Terms and Conditions. We may change Your limit or withdraw Your overdraft at any time after telling You in writing.

http://www.alliance-leicester.co.uk/currentaccounts/ec03964.pdf

Perhaps when you use their overdraft matching facility separate T&C's apply which overide the standard ones?

welsh

A and L just sent me this e-mail about my overdraft which I use some months:-

Dear Mr *******

This is a reminder for you to view your latest monthly account transactions,
including any credit interest you may have earned, on your Premier Direct Current
Account and PlusSaver Account through the Alliance & Leicester Internet Banking
service.

Remember, you will not receive a separate bank statement in the post.

These transaction details are only available online.

Important Changes To Your Account - Simplified Overdraft Fee Structure

Below are some important changes to the fees we charge if your Premier Direct
Current Account is overdrawn. We will no longer charge you interest if you go
overdrawn, instead the following fees will apply:

Existing Fee Name
New Fee Name
Description of fee
Changing from
Changing to
Authorised Overdraft Fee
Overdraft Usage Fee
This fee will be applied when you use an overdraft within your agreed limit.

5.9% EAR**
(0.48% per month)


0% EAR
50p per day*
(but capped at 10 days per monthly charging period - the most you could pay in that period is £5)
Unauthorised Overdraft Fee
Exceeding Overdraft Limit Fee

This fee will be applied if you exceed your overdraft limit or you go overdrawn and you do not have an overdraft facility.
A £25 fee for the first day that you exceed your overdraft limit and a further £25 fee if you continue to exceed your overdraft limit for more than 4 days in a monthly charging period
£5 for each day that you exceed your overdraft limit
Failed Transaction Fee and Paid Item Fee
Payment Review Fee
Payable if a transaction is presented for payment and there is not enough money in your account. A decision will be made as to whether to pay the item or return it unpaid.
Failed transaction fee of £34 per item

Paid item fee of £25 per item
£25 per item
(You will not incur the Payment Review Fee for items below £10)


The buffer zone will be withdrawn. However you will no longer incur the Payment Review
Fee for items below £10.

*Overdraft Usage Fee – this does not apply in the first 12 months from the date you
opened your account.

These changes will come into effect in 30 days time.

If you are concerned about overdraft fees please remember that there are a number
of ways in which we can help you. There is no charge to set up an overdraft and it
won’t cost you anything if not used. We can also discuss your overdraft limit and
review your account to see if we have a more appropriate product for you
(for example, we offer an account called Choice Account, which has a small monthly fee
and a different overdraft fee structure). If you do have any concerns please do not hesitate to
contact us on the number on your statement.

** EAR means Effective Annual Rate.

welsh

oops didnt format properly, basically instead of charging 0.48% a month, they will now charge 50p a day for authorised overdrafts up to £5 a month. Not very helpful at all