Yorkshire Bank Signature Current Account - Successful Refund of charged current A/C

thundyuk

Hi all,

Just sharing a success story and have a question.

In 2009 I took out a bank a/c with YB to replace an existing basic account that could not have a Switch/Cheque guarantee card or overdraft.

I was told at the time only a Signature Current A/C had this option and it was £10 a month, so I took it thinking I didn't want to change banks. Over time the charge also rose to £13.50 by 2019.

It turns out this was not true and another account was available but I wasn't offered this.

I took this complaint to YB via this website's resolver tool. YB had a turn around of about a month on the complaint, and I can't fault their process they asked relevant questions and gave me a full refund totally £1817 (net). No problems at all, one letter, and three phone-calls later all was well.

The exact circumstances were:
I required the option to take an O/D and was told only a paid A/C had one.
I did not take an O/D till twelve months after opening the paid account however this doesn't matter as I merely needed the option.
I never used one of the facilities of the account (electronic device insurance, travel insurance, etc etc)

Just sharing so everyone can get info.


Right so on to my question. The gross refund was about £1950 (roughly 500 interest and 1450 charges) but I was charged £100 in tax - I can provide exact figures if necessary... so why am I paying tax?

This is 20% of the £500 in interest so presumably it's income tax on the interest over the ten years I had the account.......basically PAYE on extra income.

Is this right? Can I claim this back somehow?

THanks

Ergates

If you can, you'd need to take it up with HMRC

eskbanker

thundyuk wrote: »

The gross refund was about £1950 (roughly 500 interest and 1450 charges) but I was charged £100 in tax - I can provide exact figures if necessary... so why am I paying tax?

This is 20% of the £500 in interest so presumably it's income tax on the interest over the ten years I had the account.......basically PAYE on extra income.

Is this right? Can I claim this back somehow?

It's fairly common for 20% tax to be deducted from the interest elements of such refunds but whether or not you can reclaim it from HMRC depends on the rest of your income taxation this year, i.e. have you used your Personal Savings Allowance and/or starting rate for savings?

topcat105

You need to fill in a form R40. You can do it online or request one by post.
I have just done this as I was taxed at 20% on the interest on my PPI reclaim.
If you don't earn over £1000 per year in interest you should get it refunded.
Hope this helps

thundyuk

Thanks Topcat. My gross income is around £30k so I've used the free allowance.

Rich2808

Hopefully the OP never went on holiday - so had travel insurance - or drove a car - so had breakdown cover - or never had a mobile - so had mobile cover or owned a camera/laptop etc - so had gadget cover - on the back of this account?


Just because you didn't claim - doesn't mean you didn't benefit from the cover provided with this account.


Sorry - but as a Yorkshire customer all this 'I didn't know' really doesn't wash if you are over 18 and an adult. When did pretending to be dumb become an excuse to freeload off others - because your 'compensation' has to be paid for?!

Ben8282

thundyuk wrote: »

The gross refund was about £1950 (roughly 500 interest and 1450 charges)
THanks

That is an awful lot of interest. Whatever APR are they paying you interest at?
In my opinion you should have received no refund at all.
You have benefited from the various insurance products offered by this account for 10 years. The fact that you have never made a claim is not relevant; when people take out insurance they normally hope that they will never have to make a claim!
You have had 10 years to think about this. 10 years! Acording to your previous posts, you would have had a ccj at the time when your account was upgraded so that is probably why you were not given an overdraft at the time rather than you not wanting one. In fact, with a ccj, you were lucky to get your account upgraded at all.

EssexExile

Rich2808 wrote: »

Hopefully the OP never went on holiday - so had travel insurance - or drove a car - so had breakdown cover - or never had a mobile - so had mobile cover or owned a camera/laptop etc - so had gadget cover - on the back of this account?


Just because you didn't claim - doesn't mean you didn't benefit from the cover provided with this account.


Sorry - but as a Yorkshire customer all this 'I didn't know' really doesn't wash if you are over 18 and an adult. When did pretending to be dumb become an excuse to freeload off others - because your 'compensation' has to be paid for?!

The OP was told he needed to have a paid for account to get a Switch/Cheque guarantee card or overdraft. That was not true, it was missold, he got his money back.

Rich2808

EssexExile wrote: »

The OP was told he needed to have a paid for account to get a Switch/Cheque guarantee card or overdraft. That was not true, it was missold, he got his money back.

I used to believe in Father Christmas – my parents told me he existed - and one day I found out he didn’t exist. Can I sue my parents for compensation?

Did the OP walk past countless other banks and building societies on the way to their local Yorkshire bank branch – that also granted overdrafts and debit cards.

I think we could all claim we were ‘missold’ products by playing dumb – which is the problem with our current compensation culture. Never my fault as an adult with the right to vote?

Simple fact is the OP has had travel insurance, breakdown cover, fraud protection, mobile phone insurance and gadget insurance for years – for free!

I haven’t claimed on my household insurance for 10 years – maybe I can get a refund on the premiums for being missold it – after all I haven’t used it?!

thundyuk

That's such a failure of an analogy I don't even know what to say.

Plus you're wrong about everything anyway so why bother.

Thanks everyone else

G_M

Rich2808 wrote: »

I used to believe in god the father, son, the HG – my parents sent me to Sunday School where I was told me he (they?) existed - and one day I found out he didn’t.

They used to take me to church and make me put money on some plate for the vicar each sunday - Can I sue the Church for compensation?


and see

https://forums.moneysavingexpert.com/discussion/5983839/sse-gas-and-backbilling-rules