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    • ross1994
    • By ross1994 13th Jun 19, 7:24 PM
    • 7Posts
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    ross1994
    Current Account Buffer - Overdraft Hell
    • #1
    • 13th Jun 19, 7:24 PM
    Current Account Buffer - Overdraft Hell 13th Jun 19 at 7:24 PM
    Hi All,

    Looking for advice for a compliant I'm going to raise with my Bank. Any consumer law or FCA reg advice that I can quote would be much appreciated.

    Scenario as is follows:

    I have a secondary current account with a high street bank, the account is not used however I've kept it around as I was advised by IFA not to close the account in close proximity to a soon to be made mortgage application.

    The account has not had any transactions (inbound or outbound) for roughly 3 months or more and had a balance of 3 for an extended period of time.

    Around 2 months ago a yearly subscription I have which I had forgotten even existed took amount of 7.99 from the account.

    Unbeknown to myself at the time and until approx 1 month after when I received a letter saying I was in an un-authorised overdraft the bank had processed the transaction and had my account at a balance of - 4.99.

    Upon receiving the letter I immediately payed the account into credit again and moved the subscription to my primary current account. I also phoned my bank and explained the situation and as a gesture of goodwill they agreed to refund the unauthorised overdraft fee that was to be charged.

    Whilst all is good and well with the above they were unwilling to remove the arrears marker they put onto my credit file for the 1 month the account was overdrawn. Their response was that the account comes with a "buffer" facility which for convenience allows transactions of upto 20 to go through when there are not sufficient funds in place. When I informed them I had never heard of such a feature I went through several call centre handlers before someone could explain what it was and how it worked, when I questioned it they refereed me to their terms ands conditions and offered to send out a copy via post.

    Can anyone provide guidance on how to complain about this matter officially to said bank, specifically any legislation or FCA rules that I can reference.

    Cheers,
    Ross
Page 1
    • Gary_Dexter
    • By Gary_Dexter 13th Jun 19, 7:47 PM
    • 6,569 Posts
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    Gary_Dexter
    • #2
    • 13th Jun 19, 7:47 PM
    • #2
    • 13th Jun 19, 7:47 PM
    If it’s in the Terms and Conditions then you agreed to it when taking the account out.

    If you didn’t read those then that’s not the banks issue.

    The reporting is an accurate representation of what happened so they’re no obliged to remove it.

    Just be grateful they refunded any fees and charges which again, they’re not obliged to do.
    • Terry Towelling
    • By Terry Towelling 13th Jun 19, 8:32 PM
    • 1,972 Posts
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    Terry Towelling
    • #3
    • 13th Jun 19, 8:32 PM
    • #3
    • 13th Jun 19, 8:32 PM
    What is the outcome you wish to achieve? If you wish to complain that the bank has not properly applied its own T&Cs then you will need to be sure what they are and how they've been misapplied by the bank. If you also want to complain that your prospective mortgage application will have been hampered by their 'incorrect' actions you might also need to demonstrate this. Do you know if your mortgage application will be affected? Have you spoken with the chosen provider?
    • ross1994
    • By ross1994 13th Jun 19, 8:40 PM
    • 7 Posts
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    ross1994
    • #4
    • 13th Jun 19, 8:40 PM
    • #4
    • 13th Jun 19, 8:40 PM
    Ideally the outcome I would like here is a correction to credit file. I think I would have a hard time arguing that they've not applied there own T&C's correctly. I think its perhaps the later as you suggested that I would like to tackle.

    In regards to mortgage application being affected, word from a mortgage broker is that a late/missed payment marker in the last 3 months on a file rules basically all high street lenders out
    • Dobbibill
    • By Dobbibill 13th Jun 19, 8:45 PM
    • 3,801 Posts
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    Dobbibill
    • #5
    • 13th Jun 19, 8:45 PM
    • #5
    • 13th Jun 19, 8:45 PM
    Hi Ross - welcome to the forum.

    The bank was very courtious to refund the unplanned charges and have done so as a 'good will gesture' as you said.

    They are obliged to report factual information to the CRAs and looking at your bank statement, this will be factual - it isn't something that can be changed retrospectively. They have done nothing wrong.

    The impact of this one off will lessen over time.
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    • Ben8282
    • By Ben8282 13th Jun 19, 8:47 PM
    • 3,552 Posts
    • 1,967 Thanks
    Ben8282
    • #6
    • 13th Jun 19, 8:47 PM
    • #6
    • 13th Jun 19, 8:47 PM
    I think it is perfectly normal, on most current accounts, that the bank would pay a direct debit? which resulted in the account becoming 4.99 overdrawn. Looking at it from a different point of view, what if this direct debit had been for something which is reported to CRA's? Would you prefer the bill to be unpaid and a late payment marker put on that account rather than the bank account?
    I do appreciate that in this case the subscription is probably not reported to CRA's but at least it is paid when otherwise it would not have been.
    I am slightly confused at the use of the term 'buffer' here .I'm not sure tit is the correct terminology for this situation.
    It really is your responsibility to be aware of direct debits due to be taken from your account and to ensure that there are sufficient funds in the account to cover them., especially if an account has no overdraft facility whatsoever and no fee-free/interest free overdraft 'buffer'.
    • Terry Towelling
    • By Terry Towelling 13th Jun 19, 9:03 PM
    • 1,972 Posts
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    Terry Towelling
    • #7
    • 13th Jun 19, 9:03 PM
    • #7
    • 13th Jun 19, 9:03 PM
    Ideally the outcome I would like here is a correction to credit file. I think I would have a hard time arguing that they've not applied there own T&C's correctly. I think its perhaps the later as you suggested that I would like to tackle.

    In regards to mortgage application being affected, word from a mortgage broker is that a late/missed payment marker in the last 3 months on a file rules basically all high street lenders out
    Originally posted by ross1994
    Understood. This area is not my forte (as is probably obvious by now) but you haven't been late for a payment or missed a payment - you've slipped into an overdraft 'buffer' by a very small amount on an account that is set up to allow this and is entirely inconsequential as far as your overall financial position is concerned - is that viewed in the same light?

    You also don't have to accept the broker's word for it. Maybe the products they promote might be affected but that doesn't mean all will be.

    Maybe a gentle 'complaint' (no legislative threats) to the bank through their official process with all the relevant information and the reasons why it's so important might help. It might not, but because it seems like you don't have any real right to demand the removal of the marker, you have nothing much to lose by giving them the full sob-story.
    • Ergates
    • By Ergates 13th Jun 19, 10:48 PM
    • 603 Posts
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    Ergates
    • #8
    • 13th Jun 19, 10:48 PM
    • #8
    • 13th Jun 19, 10:48 PM
    Ideally the outcome I would like here is a correction to credit file.
    Originally posted by ross1994
    What do you mean "correction" in this context? From what you're saying, it sounds like the file *is* correct - your account did go into arrears did it not?
    • LobsterMemory
    • By LobsterMemory 14th Jun 19, 5:42 AM
    • 246 Posts
    • 184 Thanks
    LobsterMemory
    • #9
    • 14th Jun 19, 5:42 AM
    • #9
    • 14th Jun 19, 5:42 AM
    Overdraft Hell


    Overdramatising a tad?
    • BoGoF
    • By BoGoF 14th Jun 19, 6:53 AM
    • 5,299 Posts
    • 5,166 Thanks
    BoGoF
    So basically you forgot you had a direct debit and it is the banks fault?
    • wizzywig27
    • By wizzywig27 14th Jun 19, 8:40 AM
    • 1,319 Posts
    • 837 Thanks
    wizzywig27
    have to say, I am not sure that going into an arranged 'buffer' would result in an arrears marker!

    I think the bank in question is Barclays (might be wrong) but there is indeed a 20 buffer - with charges. In fact I think TSB also do something similar.

    Anyway, have you checked your credit file to see what is reported?
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