False information has led to penalty charges - should I take it further?

Watson

In mid-November I rang the Bank of Scotland helpline about a direct debit which I knew would be refused as I'd been slow in transferring enough money into the account to cover it. The chap I spoke to mentioned something which I'd never heard of: he told me that the Bank have a "Once a year goodwill gesture" scheme under which customers can ask for one particular bank charge to be rescinded. Since the missed direct debit was about to incur a charge of £39, he asked "Would you like me to wipe that one out for you?" and of course I agreed.

I asked why no-one else had ever mentioned this goodwill gesture scheme, and he said he'd no idea. A few seconds and a bit of keyboard activity later, he said "There you are, sir: that charge won't be happening".

Well, you can probably guess the rest: today, the charge did go through. And as a result, there were insufficient funds in the account to cover another direct debit, this one for my monthly mortgage payment.

I rang the helpline. The young woman I spoke to had never heard of this once-a-year refund scheme.

She immediately offered to refund the £39 charge and also the £25 charge which today's refused direct debit had incurred. And at my request she's arranging for a letter to be sent to me in which the bank accepts responsibility for the mistakes.

So I have two questions:

The chap who gave me the totally incorrect information committed a serious error. Should I take this further?

and

When I rang my building society they told me that an automatic penalty charge of £25 has gone through on my mortgage account because the direct debit was refused. What are my chances of getting the Bank of Scotland to give me that sum, since it was, after all, their fault?

Many thanks.

JHW

MABLE

A friend of mine who banks with Lloyds went over his overdraft limit by £5.00 and incurred a penalty charge. He rang them up and said this is the first time it had happened and they advised him they operated a goodwill policy, as you mention in your post.

The advisor made notes on my friends account and was given a call reference no at the end. Hence the penalty was never imposed.

I'm sure your bank would be able to trace who you spoke to as no doubt notes were left on the account. Also because the other person wasnt aware of the goodwill policy it does not mean you were given the wrong information in the first place.

Watson

MABLE wrote: »

...because the other person wasn't aware of the goodwill policy it does not mean you were given the wrong information in the first place.

That's an interesting possibility, which hadn't occurred to me. Thanks.

I think that when I get the promised letter, I'll reply raising exactly that point.

JHW

krisskross

It sounds as if you 'sail a bit close to the wind'. Perhaps it would be a good idea to arrange a small overdraft to give yourself a bit of leeway.

Badger_Lady

I don't think you need to "take it further" in respect of the adviser's "wrong information" (which, as above, was probably a clerical error that the bank has now resolved).

However, your mortgage fee is more interesting... Have you spoken to the mortgage company to explain the situation? They will probably also have a "goodwill" type opportunity.

I agree that it was the fault of your bank, but it could be difficult to persuade them to compensate you. If your mortgage company digs their heels in, go down this route, but try your best to get it waived in preference.

Watson

Badger_Lady wrote: »

I don't think you need to "take it further" in respect of the adviser's "wrong information" (which, as above, was probably a clerical error that the bank has now resolved).

I really can't see it as a clerical error to tell me that the bank offers a particular service and then inform me that a sizeable charge has been removed from my account when in fact the first appears to be inaccurate and the second definitely was. The chap was so specific about it, about what he was doing and what he'd done, that I'm hard put to it to explain what actually happened.

However, your mortgage fee is more interesting... Have you spoken to the mortgage company to explain the situation?

Yes, I have. "The charge has gone through automatically and can't be rescinded" they said, adding "Maybe you could get it back from your bank..."

JHW

Watson

krisskross wrote: »

Perhaps it would be a good idea to arrange a small overdraft to give yourself a bit of leeway.

Thanks for the thought, but I already have (and am close to the limit of) a not-so-small overdraft

JHW

Paul_Herring

Watson wrote: »

Thanks for the thought, but I already have (and am close to the limit of) a not-so-small overdraft

JHW

It sounds a bit like you're using your overdraft as a slightly longer term loan than an overdraft is meant for.

Have you considered getting a loan out to cover the overdraft amount and try and run your account closer to the positive side of £0? You'd be paying a lot less in interest, and probably less in future fees.

Watson

Paul,

Thanks for that. Excellent advice, of course. Unfortunately, my finances being in something of a mess at the moment, I already have an existing loan, too.

JHW

Iamthesmartestmanalive

Watson wrote: »

Paul,

Thanks for that. Excellent advice, of course. Unfortunately, my finances being in something of a mess at the moment, I already have an existing loan, too.

JHW

and yet you want to blame someone else

Your lucky they agreed to refund any of the charges as they are entirely discretionary

Accept your lesson and move on

If you kick up a fuss about your own mismanagement their discretion in future will go out the window

Watson

Iamthesmartestmanalive wrote: »

and yet you want to blame someone else

Not for my own mismanagement, I don't. But I do consider it a serious breach of conduct for a bank employee to state categorically that a charge has been rescinded when it hasn't, yes.

In general, I take your point, though.

Nice, modest name, by the way.

JHW