Charges for going o/d

milliesmama

I have a step account with natwest and with my tax credits being screwed up this week direct debits have gone out causing me to be o/d by £2. Natwest have charged me £38 (which i cant afford) causing me to be even further o/d. I have had no notification of these charges, they have just come off my account straight away. The only income I have is benefits-can they take them?? What can I do?

rusty-london

The first thing to try would be to call the bank and try to explain what has happened and see if they will take the charges off for you.
It's not guaranteed to work, but it's worth a try.

rail.link

I thought you couldn't go overdrawn on a basic account ?

jonesMUFCforever

rail.link wrote: »

I thought you couldn't go overdrawn on a basic account ?

Some banks would have charged for an unpaid direct debit anyway.

milliesmama

it was a charge for an unpaid direct debit-but the whole reason behind opening a basic account was so it was not possible to get in a mess again. i called the bank and they wont reduce or scrap the charge as it has already been applied to my account.

mrs_deadline

£38 is absolutely ridiculous especially if the Tax Credit system was to blame.

My suggestion would be to put in a written complaint in which you explain:

- the underfunding that led to going OD was outside your control
- your only income is benefits of x amount
- the charge is disproportionate to the £2 OD
- the charge is y% of your benefits
- the charge is causing you immediate hardship
- you want the charge refunded to your account
- you are being a responsible customer by requesting this in good faith before it causes more charges to snowball
- you are sure they would wish to act in a customer's best interests now they are in possession of all the facts.

Make sure to mention the word "hardship" in the subject line because under the Banking Code they are supposed to consider cases of financial difficulty sympathetically and positively. That shouldn't include piling on charges when you're in the middle of a tax credit c0ck-up. Give it a go and good luck!

jonesMUFCforever

If the tax credit system is to blame then surely they should pay?

milliesmama

if only it was that simple......i now have a second charge of £38 (a second dd went off :mad: ) for £6...so again £38 charged. can they just take a charge without informing me first?

iceicebaby

milliesmama wrote: »

if only it was that simple......i now have a second charge of £38 (a second dd went off :mad: ) for £6...so again £38 charged. can they just take a charge without informing me first?

They can if it is in the T&C of your account.

have you contacted them as advised above ?

jonesMUFCforever

Is it charged already or will it be debited at a later date?
If money is that tight for OP they should consider paying by an alternative way to direct debits and standing orders.
As I see it it is not only the bank that will charge but the beneficiaries as well for an unpaid direct debit - a double whammy!

Dylanwing

A £2 overdraft and a £6 direct debit, and that costs £76, money which OP clearly cannot afford. Definitely go for the hardship letter, and it might be worth talking to the CAB, maybe they can knock some sense & compassion into Nat Worst. Are you able to set up a new account elsewhere, to avoid any further snowballing? Preferably one that gives 28 days prior notice of charges, rather than an 'on the spot' fine. I hope that you can sort this out, as you are far more important than Nat Worst profits.