Bank Charges?

Discussion in 'Off Topic / Chit-Chat' started by PM, 22 Sep 2008.

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  1. PM

    PM Member

    Messages:
    611
    Location:
    London
    I just got charged £25 for being past my limit by £60

    I thought it was illegal now, does anyone know what's going on? :(

    Thanks again HSBC :mad:
     
  2. Mark Evans

    Mark Evans Expert

    Messages:
    6,492
    Location:
    newark notts.
    not sure, its unauthorised borrowing mate, it stinks but they can do it.when ever you think your near your limit just up your overdraft limit so you dont get stung. then lower it again when your finacialy better off.
     
  3. nickyc

    nickyc Member

    Messages:
    208
    Location:
    Nottingham
    Have a look on www.moneysavingexpert.com
     
  4. a1Matt

    a1Matt Member

    Messages:
    2,518
    Location:
    Bromley
    They are allowed to charge you a fee. It is supposed to be 'reasonable' though.

    Personally I'd contest it as not being reasonable. If you don't go over your limit very often there is a good chance they will refund it.
     
  5. howardish

    howardish Member

    Messages:
    63
    Location:
    Southend On Sea, Essex
    I work for a bank quite heavily involved in the charges case *cough*LTSB*cough* (though not directly with the charges side of things) banks can charge for going overdrawn past your limit..this should all have been laid out at the start when you open the account...
    however, the charge should be reasonalble (a £25 charge for a couple of quid IMO isnt!)
    and also, yes if you havent done it before just ask, say you werent aware of the charge and they are more than likely to refund it.
    Also, ask nicely..sounds stupid but the moodier you are the less likely they are to agree to refund it.

    HTH
    Howard
     
  6. SuperColey1

    SuperColey1 Member

    Messages:
    2,677
    Location:
    Lincoln UK
    The current situation is that the Banks lost the first case at which point of course they appealed so it is all now in limbo until the second stage is done.

    They are allowed to charge a fee but the case is all about proving that it doesnt cost £X to administer the letters and control the account as it is mostly automated.

    Most people who have claimed have then been told go to court at which point the case gets so far and is then stayed pending the result of the high court case.

    Check out the threads on consumeractiongroup.co.uk

    Some people have been successful though because you can appeal against your case on grounds of hardship (proper hardship not short for a week or 2. lol) at which point the banks try and make a deal quick because they dont want to set a precedent before this case finishes as it would mean admitting fault. They call it a 'goodwill gesture'. lol

    Can you tell I have been researching. he, he.

    AC
     
  7. a1Matt

    a1Matt Member

    Messages:
    2,518
    Location:
    Bromley
    Good general rule of thumb that one - it's nice to be nice. I have found you nearly always get further when being nice :D
     
  8. aaronnorth

    aaronnorth Member

    Messages:
    3,955
    Location:
    worksop, nottinghamshire
    my aunty got charged £16 for £1 over :wideyed:
     
  9. JamesC

    JamesC Member

    Messages:
    1,276
    Location:
    Bexley, Kent
    I'm sure Martin Lewis said the other day that anything over £15 is considered unreasonable.

    James
     
  10. howardish

    howardish Member

    Messages:
    63
    Location:
    Southend On Sea, Essex
    If only the majority of my customers realised that :lol:
     
  11. SuperColey1

    SuperColey1 Member

    Messages:
    2,677
    Location:
    Lincoln UK
    The insider that is being used by the claimants suggests it costs in the region of 30p for the administration and this is what the whole case is based around!!!!

    The amount overdrawn doesnt matter for this case as it is the charge that is being challenged. Overdraft interest covers the mount overdrawn. Its just the one off charge for going overdrawn which costs the bank the same amount in 'admin' wether you are 1p over or £1000. Bad debts and non payers is a different matter entirely.

    AC
     
  12. Superman

    Superman Member

    Messages:
    1,804
    Location:
    Cheltenham
    If you go over your overdraft limit then you should be charged - simple as.
    Sometimes its a mistake or a miscalculation on your side - tough luck.
    I've had it, paid it - couldn't be bothered to kick up a fuss - then got it refunded as the bank saw it was something of a one off.
    It's in the T&Cs of the accounts so you've agreed to it.
    Can't believe people that there might be a chance that people will get their money back.
     
  13. Mark Evans

    Mark Evans Expert

    Messages:
    6,492
    Location:
    newark notts.
    kinda what i was thinking but didn't want to say, management of accounts is key, i used to end up in right financial messes, until i took control and managed my accounts better. never looked back since.if it looks like your going to go into unauthorised overdraft, just up the level.
     
  14. SuperColey1

    SuperColey1 Member

    Messages:
    2,677
    Location:
    Lincoln UK
    People arent 'thinking' they will get their money back. they already are, albeit the ones that can claim hardship caused to get their cases through the staying period.

    If you check the contract you initially signed with a bank it probably states 'admin fee' rather than the amount to be charged and with all things it is being disputed wether a company should be allowed to charge that amount for an automated process. Especially as they often charge for being overdrawn when you actually weren't!!!

    If you are in the situation where you have a direct debit coming out tomorrow. You haven't enough money in your account to cover it. Not a problem because tomorrow is pay day.
    You are paid via BACS (automated) you are charged via direct debit (Automated) They both automatically process at midnight (or 2am for some banks)
    Your conclusion and mine should be that you weren't overdrawn. Wrong. Most banks make sure they make payments before they receive money and then charge you for being overdrawn when you weren't as the outgoing and income both happened at the same millisecond automatically. This is also being disputed.
    I don't mind paying a reasonable amount if I default in my bank but were I to go overdrawn and then be charged a fee on top of interest when I had not defaulted before and the bank has had my money in good faith to do with as they please making money on the markets then I would rightly feel peeved.

    You are the lucky one Clark. Not many people get their charges back by asking. In fact if you look at the forums on this subject then there are some unbelievably terrible practices and responses from the banks including at the minute recalling overdrafts with one months notice (this is happening a lot at the moment)

    One instance I read was that someone had a £500 agreed overdraft which they used and never went past, paid the interest etc. The bank sent a letter saying they were withdrawing the overdraft 1 month from the letter. The person rang the bank to say they couldn't afford to pay it back that quickly and guess what. When their week's pay went in they couldn't get at it. The bank had frozen all transactions, refusing to pay direct debits and then charging 'commission'. This is illegal and this case was sorted fairly quickly with the bank deciding against being found out in court and making a 'goodwill' gesture of compensation on top of refunding the 'commissions'. refunding the direct debit payee's charges and reinstating the overdraft with an agreement to repay it monthly for a year.

    There are thousands of cases like this and I have been hit by a couple this year just the same. Its been a bad year but the banks make a rod for their own backs and have got away with it for too long.

    AC
     
  15. SuperColey1

    SuperColey1 Member

    Messages:
    2,677
    Location:
    Lincoln UK
    The other one that people can fight is when a debt collection agency drops one of those threatening letters through your letterbox saying they are chasing payment of a company you were using.

    This is illegal as first the company you owed the money to have to send you a letter of assignment to tell you that they have passed the debt onto a different company.

    You can refuse to pay this debt collection agency until you have this and are legally entitled to do it. If not anyone could send you a letter asking for money that you owed to someone else.

    If they take you to court for non payment when you have not received this letter of assignment then your solicitor only needs to point this out and the case will be thrown out!!

    Bad practices everywhere all in the name of the mighty dollar.

    AC
     
  16. Superman

    Superman Member

    Messages:
    1,804
    Location:
    Cheltenham
    The matter is that the banks are refunding the money because people are kicking up a fuss and the small amounts mean that is doesn't warrant a legal challenge in each case. So thats why the test case with all the banks together was brought on.

    Whilst I don't have any problem with people who are hard up getting assistance from the bank to repay, I've seen/heard cases that those who's own fault has caused the financial problems getting away with it in this way.

    I've been reviewing certain arrears management policy today at work and noticed how "softly softly" banks are now cos they're scared of getting people to repay the money they owe - money which they can easily repay, but are getting round things by saying the right things. I would hate to be in arrears but then that's a different story, I must be old fashioned.

    I don't blame people asking for their money back, if they want it back and can get it fair play. I just think it's wrong. Similar to everything being totally politically correct.

    I must sound like an old grump.
     
  17. SuperColey1

    SuperColey1 Member

    Messages:
    2,677
    Location:
    Lincoln UK
    They are refunding the money because they have lost the first case and are scared now of the hardship cases that can go to court setting a precedent. Thats why they are refunding. they are on the run and holding onto as much money as they can earning as much as they can off of it until the day when they do lose the second stage at which point they know the flood gates will be opened. If they hadn't been so heavy handed and 'pompous' with their ridiculous charges to begin with then they wouldn't have had this problem but money breeds greed and contempt.

    If you think its wrong for people to want money back that is rightfully theirs (and soon to be legally proven that it was illegally taken) then thats your choice and yours to make.

    As for banks being soft then you must have some superb experiences with banks. I have had 2 bank accounts in my life. both rank and both charged me for things that were unchargeable (when I wasnt overdrawn charging me overdraft fees etc) as well as things that were 'in the t&C when even if you read the T&C several times there is no amount stated.

    Each to their own and I hope your bank continues to please you. I know I wish mine would. lol

    I was just answering the first post really as the guy asked if it was illegal. The answer to the first question is no it is not illegal but it could (and probably will) be illegal soon. The link is there as there is a full guide of what you can claim, how to do it, how much interest to claim for the time periods and the whole process of going through the small claims court etc. (You can claim the last 6 years of bank charges!!!)

    p.s. the "small amounts" that have been successful on that particular advice forum I linked to so far totals £16,595,128 from 9717 successful cases!!! Tiny little pittence I'd call that. lol and all the cases that are 'stayed' in the courts are yet to come!!!

    AC
     
  18. Joecoral

    Joecoral Member

    Messages:
    694
    Location:
    Neath, South Wales
    I'll second that !
     
  19. hellohefalump

    hellohefalump Member

    Messages:
    345
    Location:
    Newhaven, east sussex
    What a WUNCH OF BANKERS!!! :lol: :lol: :lol: :lol:

    I got nearly a grand back from Nationwide :D early last year :D :lol: :lol: :D

    What happened was... it was my fault initially. I didn't put a cheque in on time because I forgot to, and then all my direct debits went out and bounced. So I went to the bank, and said 'I'll pay one of the charges if you let me off the rest, it was a mistake... etc etc' and they refused. So then I had no choice. I was heavily pregnant (so no job), and even after I cancelled all the direct debits they were still charging me £25 every month for my unortherised overdraft. So I took them to court, for all my charges in the last six years (quite a lot) plus 8% on top for interest and £80 court costs.

    But that was before they starting holding applications because they were doing a trial court case.
     
  20. squiggley

    squiggley Member

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    220
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