Chris V NatWest - Business Account - Advice Please!!!!

[redfox]

My partners father is claiming his charges and his account is a business account/current account and he has received a letter back from NatWest saying that:

"....None of that investigation (referring to OFT statement) centred on Business Banking account facilities - it was limited to personal credit card charges only."

Also:

"Having reviewed your account, I regret that i cannot understand the basis of your calculation. Transmission charges are a completely separate issue and cannot be included in any claim where a customer believes that they have a right to contest default charges."

After posting a thread and receiving one reply I sent the second letter off for him. He received a further letter this weekend in response to the LBA saying the following:

"Thank you for your further letter of 14 August 2006.

I regret that there is little that I can add constructively to my last letter and note your proposed course of action. I have alerted our lawyers and litigation department accordingly. May I pleae remind you that the address to use when initiatng legal documents is that of our Registered Office, below.

Thank you for letting me know of your intentions."

The amount is for £2.5k, should we go straight to the small claims court now? I haven't seen a letter like this before so it worries me slightly. I have checked all the charges are correct. all bounced cheques from customers, going over the overdraft facility, bouncing a direct debit etc. I haven't included any of the regular agreed charges that businesses are signed to. Not sure what to do and hope you can help.

[TheSaint7]

Is he a sole trader eg name T/A Business Name or LTD company?

[redfox]

He is a sole trader. He has a newsagents.

[dave]

Got your PM - will reply here.

The OFT "ruling" had nothing to do with businesses at all. The reason is because they used the Unfair Terms in CONSUMER Contracts regulations.

You cannot use the OFT at all.

You must rely on the 1915 Lord Dunedin ruling regarding penalties in contracts.

Nearly all of the case law supporting this is between two businesses.

Have a read of the FAQs - the answers are all in there

As per the Transmission Charges, I would need to know more about these.

Is that charge a fee for providing the account? You can only use the Penalties v Liquidated damages argument for penalties - not for the cost of a service provided.


There are also standard letter templates specifically for businesses in the library section.

[redfox]

Hi Dave,

Thanks for that. I found one business template in the library and added the Lord Dunedin ruling. Could you please have a quick read of it to check if it sounds right?

Further to your letter dated the 18 August 2006, I write to inform you that I now understand that the regime of fees which you have been applying to my business account in relation to direct debit refusals, exceeding overdraft limits and so forth are unlawful at Common Law and contrary to Statute.

I would draw your attention to the terms of the contract which you agreed to at the time that I opened my account. It is an implied term of that contract that you would conduct yourselves lawfully and in a manner which complies with UK law. I refer you to Lord Dunedin’s ruling regarding penalty charges between Dunlop Pneumatic Tyre Co. Ltd. Vs. New Garage and Motor Co. Ltd. (1915).

I am frankly shocked that you have operated the account in this way as I had always reposed confidence in your integrity and expertise as my fiduciary.

I calculate that you have taken £2187.00 plus £73.57 which you have charged me in overdraft interest for the sum which you have taken. Total £2260.57

I require repayment of this money. If you do not return it to me in full within 14 days, I shall begin a claim against you for the full amount plus interest, plus my costs, without further notice.



Thank you


Chloe

[sweetstreetuk]

please let me know what response you get with this letter, i think i will have the same problem as i have a buisness acc i also use my name then t/a i did read somewhere else on the forum that this can be classed as a current account as i trade with a shop name and a buisness name and all my cards cheque book etc has my details on them as well as buisness name!!!!!!!!!! if anyone can verify this it would be great thanks and good luck with its time to put the fat cats on a diet lol!!!!!!!!!!!!