Bank charges on fee free account

Vaa190381

I have a NatWest fee free basic bank account. Unable to have an overdraft, credit cards etc.. on disability benefits which only get paid when DWP or UC days. I am being charged £1.55 every month I'm guessing for for few years, defo last 12 months. Why am I being charged for them taking money out the bank that's not there then returns next day I get charged from the bank then also whoever my missed payment was for. And letting payments to keep trying to pay knowing what dates I have told them when my money goes in. In very hardship right now 4 teenagers try to feed. Now I'll have to put my only way of transport my car up for sale as it's too expensive to run. So homebound. Are NatWest allowed to charge that every single month? Thanks Vicki x

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/6654086/bank-charges-on-fee-free-account

"Fee free" banking will usually state in the terms & conditions, even in the key facts document, what services are considered "normal everyday banking" and are not charged for, while other services will still be subject to a schedule of fees.

Looking at the standard Natwest Fee Information Document

https://www.natwest.com/current-accounts/select_account.html#https://www.natwest.com/content/dam/natwest/personal/permanent/current-accounts/documents/fee-information-document/nw-fee-information-document.pdf

the charge of £1.55 is relating to a declined payment.

If this is occurring every month, do you have a standing order or direct debit scheduled out of sync with your payment dates for money received?

molerat

Refusing a payment due to lack
of funds
• Unpaid Transaction Fee
Charged if you instruct a payment
that would create an unarranged
overdraft and we decide not to
make the payment (1 fee per
charging period (£1.55)).
£1.55*

So you need to take control and arrange your scheduled debits so that they coincide with your account being in sufficient credit. On the plus side it seems you only get one charge per period rather than one per transaction.

itsthelittlethings

Are you getting all the benefits you are entitled to?

eskbanker

Why am I being charged for them taking money out the bank that's not there then returns next day

You've answered your own question - you're being charged because the money isn't there when it's needed to satisfy the direct debit (or whatever other form the regular payments take). The timing is nothing to do with the bank, so if you want to avoid this happening your choices are:

1. Make sure that there's enough money in the account before the scheduled payments go out
2. Amend the schedule with the companies concerned, so they only happen after you've been paid
3. Cancel the scheduled payments and make manual ones instead

Not saying that any of these will be easy, but they're the only ones I can think of that would avoid charges for unpaid transactions.

MyRealNameToo

Because there is a hell of a lot that goes on behind the scenes in banks and insurance companies that most people, not even front line staff that work in these places, are unaware of. These sorts of things have impacts hence why the the OFT and FCA did their impact analysis on the somewhat similar issues with credit cards on late payment and over limit fees and determined that £12.50 is easily justifiable.

Obviously yours isnt a credit card but then yours is also only a little over 10% of the fee too.

retiredbanker1

In my day it was £10/£15 for unpaid direct debits.

I had never heard of this Nat West fee before.