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Overdraft fees with only postal notifications

Hi,

I'm looking for advice on whether I can make a complaint to my bank and request interest fees removed (refunded?) on the basis of not receiving any email or text notifications about overdraft fees. I literally did not know for 5 years I was in my overdraft on an account I stopped using. Specifically I know that around 2018/2019 there was a change around text notifications for overdrafts, but not entirely sure about the consequences of it for arranged overdrafts. I can't post links but "overdraft fee notification rules uk" google should give links to what I'm referring.

What happened to me: I had a current account with Smile bank (online only co-operative bank). Opened in 2014. The system was rubbish (in my opinion), very hard to view my account online, one of the old style chip and pin devices required to log in (no app I don't think), so in 2019 I decided to stop using it, without informing them or closing the account. The mistake I made was that I forgot I had an arranged overdraft. I spent money on my debit card thinking I'd empty the account, but actually went into my overdraft by ~£100. I assumed that the card would stop me spending when I reached £0, stupid mistake as I said, I didn't understand overdrafts & debit card spending as well then as I do now (debit cards only let you spend the money you have, right? :D ). I didn't think about the account again. I would get monthly emails saying "you have a new paperless statement, log on to view them". I would try to log in periodically but could never get in and gave up. I have now found out that they changed their system sometime between 2014 and now, and so at some point I did not have an online account any more, which is why I couldn't log in (I have checked and I did not receive any email about this change of system).

So last month my credit rating binged down and the report told me which account it was. I went to smile and had to call customer support (when I was told I didn't have an online account), set up my online account on the new system and saw that the overdraft ran from £100 to £550 and now into an unarranged overdraft (£500 arranged). Not bad really for 5 years of borrowing. I asked their customer support if they could reduce the fees, the support agent I had was quite belligerent (in my opinion) and after speaking to their manager told me there was nothing they could do and that the interest fees would stand.

My question is did they have a responsibility to try and inform me of the fees and being in my overdraft via text or email? They had my phone number and email, and, as the support agent told me, they were an internet only bank. They had an address but it was out of date, the customer support person implied they sent letters to my old address, and it was my fault for not updating the address. I checked my emails from them, they did send two types of emails over the years, paperless statement and 'you have a message'. Both requiring me to log in.

I'm wondering if it's worth the fight or to let it go. I am not going into financial hardship over it, although it's not an easy amount of money to find on short notice. They gave me two weeks grace period to clear the overdraft or work out a payment plan with them based on my income & expenses.

Thanks for any advice.

Comments

  • p00hsticks
    p00hsticks Posts: 13,917 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 29 January at 7:24AM


    My question is did they have a responsibility to try and inform me of the fees and being in my overdraft via text or email? They had my phone number and email, and, as the support agent told me, they were an internet only bank. They had an address but it was out of date, the customer support person implied they sent letters to my old address, and it was my fault for not updating the address. I checked my emails from them, they did send two types of emails over the years, paperless statement and 'you have a message'. Both requiring me to log in.

    I'm wondering if it's worth the fight or to let it go. I am not going into financial hardship over it, although it's not an easy amount of money to find on short notice. They gave me two weeks grace period to clear the overdraft or work out a payment plan with them based on my income & expenses.

    Thanks for any advice.
    Personally I think you are unlikely to win this one.

    They've been communicating regularly via e-mail telling you that there are statements and secure messages for you online (I doubt that any bank would include any detailed info in an e-mail as it is not a secure method of communication), and it doesn't sound as if you made any attempt to follow up with them on why you were unable to log on. 

    And they've been communicating by post but you failed to inform them of a changed address.

    I've never been a customer of Smile myself, but often banks have settings that you set to say how you wish them to communicate with you and it may well be that either they don't cater for text messages or you didn't specify that you were happy to receive them.  

    So I think they've done everything required of them, but unfortunately you've dropped the ball....
  • Hoenir
    Hoenir Posts: 5,604 Forumite
    1,000 Posts First Anniversary Name Dropper
    They had an address but it was out of date, the customer support person implied they sent letters to my old address, and it was my fault for not updating the address. I checked my emails from them, they did send two types of emails over the years, paperless statement and 'you have a message'. Both requiring me to log in.


    On this basis you intend arguing it's the bank's fault for not contacting you ? Probably better to use your energy to agree a workable repayment plan. The quicker the debt is repaid the sooner your credit history will improve. 
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