Help - I have been so stupid

[sirhc]

I wonder if anyone can help me. Last year I applied for my bank charges back from Barclays and eventually just before the court date got my monies refunded.
As suggested I opened a bank account with another bank in case Barclays closed mine. They didn’t.
I opened an account with the Alliance & Leicester – a premier account (Approx Aug 06). Where £10 per month would be paid into a savings account and I would need to put in £500 per month.
About two months after opening the account I wrote and cancelled the account. Then when any further letters arrived I foolishly threw them away without opening them as I thought they were circulars – insurance etc.
Today I got a letter which I opened and they say I owe them £150.
I spoke to a lady who explained that they had never received my letter cancelling the account.
So for the first 12 months £10 was paid from my account into the premier savings account.
Apparently I had an overdraft facility for the first 12 months. When this finished they closed the premier savings account and paid themselves back but as the overdraft had gone bank charges etc has been going onto the account.
Today I owe them £80.50 they say I need to pay them that plus £55.33 by the 19 October and that a further £55.33 bank charges will be going onto the account as they collect charges a month in arrears.
They say that if I could pay them this over six months, they would then close the account today and I would get a ‘3’ on my credit rating.
I was also told that because they had kept me informed of the charges and that I just hadn’t opened them they would not refund the charges. I was also told that there is a test case going on at the moment so they are not refunding any charges until the outcome.
I know this is all my fault but has anyone any idea what I should do now

[Goldlady]

I don't see how it is your fault if you wrote to close the account. As you are no longer using it there is not a great deal they can do. And I fully understand about the junk mail thing - these people are their own worst enemies because they do send out such a lot of Cr*p. I think I would stand by the fact that you had written to close the account and it is not your fault if they lost the letter and ask them to refund the lot. Or offer them £20 to go away - in the nicest possible way

[sirhc]

I would love to do as you suggest but I dont want a bad credit rating and they are saying it is my fault for not opening letters. (Which it is)

[Goldlady]

I had a similar situation with the NatWest a few years ago - before all this reclaiming charges kicked off when the only way you could reclaim was by asking the bank nicely. I was charged on an account I hardly used for being 20p short on a £5 dd to the RSPCA and because I was so incensed I let the account lie for over a year, by which time it was £1000 overdrawn. Eventually someone with some sense at the bank refunded the lot and closed the account. I didn't get a default for it, although I have lots of other ones. I would push a bit harder before you agree to pay up. After all they could see you were not using the account.

[sirhc]

The only worry I have is that they keep adding more charges to the account. I agree that I should write to them but should I try and pay the money as well? to stop anymore charges

[Goldlady]

Well if you can afford to clear it and then claim the charges back later it is probably worth it, rather than have the worry. If you do that you must ensure that they freeze all future charges and interest or you will be in their grasp forever. I have had situations in the past where you just manage to raise enough to pay the overdraft off and they then say 'ah, you were overdrawn for 24 hours more so we are charging you another £35 next month...' and on it went.

Is there any way you can have a face to face chat with someone with a view to closing the account so there is no chance of that happening? It is either that or you brazen it out like I did.

Did you keep a copy of the letter you sent asking them to close the account? Or can you produce one?

[sirhc]

I dont think I can have a face to face as it is a internet account. I have a copy of the letter I sent. I have not really got the money they want, they want £135.83 by the 19 Oct and then she said another £55.33 would be added after.
But I dont want them to keep adding more charges on it so I will have to find it somehow.

[sirhc]

Unless anyone has any better ideas I am thinking of sending the following letter. I would be grateful if anyone could make it read better.

I received your letter today explaining that I am now overdue with the premier account that I opened in August 06.
I wrote to you in October 06 with instructions to close this account.
In good faith I have been throwing your letters away unopened as I believed them to be insurance fliers etc. as the account was closed.
I rang your office today and they explained that these were indeed charges and that a further £55.33 would be added to the account by the 19th of October. They also said that my letter was not logged onto your system.
I have today paid £135.83 into the bank account as I cannot afford to have any more charges put onto an account that I had thought was closed and that I had never used.
I would request that this account now be closed and that no further bank charges be added to this account.
Please can you write to me and let me know that this account is now closed.

[Goldlady]

I received your letter today explaining that I am now overdue with the premier account that I opened in August 06.

I wrote to you on xx October 06 with instructions to close this account - a copy of this letter is enclosed. As I expected you to deal with this request, I believed letters received since then to be insurance fliers and the like and did not open them. As far as I was concerned the account had been closed and I had not used it.

I rang your office today and they explained that these were indeed charges and that a further £55.33 would be added to the account by the 19th of October. They also said that my letter was not logged onto your system.
I have today paid £135.83 into the bank account as I cannot afford to have any more charges put onto an account that I had thought was closed and that I had never used.

I would request that this account now be closed and that no further bank charges be added to this account. I have paid you the £135.83 as a gesture of goodwill, as I am fully aware of the current situation regarding unlawful bank charges. I therefore ask that you write to me and let me know that this account is now closed.

I don't know if this is any better - but hope it helps

[sirhc]

Thanks Goldlady
That sounds a lot better than mine
But it does pain me to have to pay this to them for nothing.

[Goldlady]

I agree - it's a pity you already did. You will be able to reclaim it at some stage hopefully but that won't help you at the moment.

[sirhc]

This letter will be for tomorrow as I will have to pay in cash for the money to get to them in time. If it gets to them in time.

[Goldlady]

If you haven't paid it yet, don't. They have taken the £10 a month out of your account when there clearly wasn't enough money in to cover it, which is ridiculous, it's not as if it was going to someone else, just internally to another account.

Don't let them intimidate you. It is a total waste of money giving them this.

I wouldn't pay them if it was me. Particularly as you aren't using the account.

[sirhc]

So what would you write to them?

[Goldlady]

I received your letter today explaining that I am now overdue with the premier account that I opened in August 06.

I wrote to you on xx October 06 with instructions to close this account - a copy of this letter is enclosed. As I expected you to deal with this request, I believed letters received since then to be insurance fliers and the like and did not open them. As far as I was concerned the account had been closed and I had not used it.

I rang your office today and they explained that the outstanding balance of (£135.83) was indeed charges and that a further £55.33 would be added to the account by the 19th of October. They also said that my letter was not logged onto your system.

As it is clear that I have not used the account and that the charges were incurred because £10 per month was moved to another internal account within the bank when it was clear that I was not using the account, I believe that these charges are unlawful. No money has been paid to a third party on my behalf and therefore there is no loss to yourselves.

I would request that this account now be closed and that all the charges are written off. I am fully aware of the current situation regarding unlawful bank charges and will be happy to await the outcome of the test case should you decide not to honour my request.

I therefore ask that you write to me and let me know that this account is now closed.

I am not an expert - hopefully someone else who is will come along and alter this - but that is what I would say.

Goldlady

[sirhc]

Thanks again Goldlady
This letter says everything that I wanted to say. I am going to send this letter off today unless anyone has good reasons why I shouldn't

[jansus]

The letter looks good

For the amount of the charges I would consider fos route - you will still be on pile of pending claims - but maybe if you write and emphasise this is about the fact they did not close your account when they asked you to and the level of charges - they may help - or even try calling them . I believe that is what annoyed from Caerphilly did ?

Jan