Thread: student and bank of scotland ultimate reward a/c

Hi, I am hoping someone can give me some advice so I can help my son.
My son is a student and had a very basic a/c with the Bank of Scotland, he had just turned 18 and got a few hrs a week working. So he went to the bank to see if he could get an account with a debit card. He was advised to open the Ultimate Reward Current Account (unknown to me at the time). Bank of Scotland charge £12.50 a month for you to have this account so you can benfit from the "rewards" it offers. None of these "rewards" are of any use to my son at this moment in time, and he says he didn't know he had to pay this every month. They also gave my son an instant £200 overdraft, which being an 18 year old student he saw as free money and spent the lot and then went into unauthorised overdraft, thus getting charges of £28 at a time. He still had his original basic account and his wages are getting paid into this. Every month he pays money into Ultimate Reward Account to pay off charges and get back into the agreed overdraft, which he is hoping to clear once he gets a tax rebate that is due him. But because they Keep charging £12.50 to have this account he geats another charge. He can't put any more money in a month.
Sorry I have gone on a bit, but after just finding all this out I am raging, a little at my son for being a bit careless with his money, but mainly at the bank for advising him that this was the best account for him and the £600 he has a month.
If I had the money I would clear his overdraft and close the account. Can anyone give me any advise please, as I don't think the bank should of advised my son to open this account.

Originally Posted by tanasg

Hi, I am hoping someone can give me some advice so I can help my son.
My son is a student and had a very basic a/c with the Bank of Scotland, he had just turned 18 and got a few hrs a week working. So he went to the bank to see if he could get an account with a debit card. He was advised to open the Ultimate Reward Current Account (unknown to me at the time). Bank of Scotland charge £12.50 a month for you to have this account so you can benfit from the "rewards" it offers. None of these "rewards" are of any use to my son at this moment in time, and he says he didn't know he had to pay this every month. They also gave my son an instant £200 overdraft, which being an 18 year old student he saw as free money and spent the lot and then went into unauthorised overdraft, thus getting charges of £28 at a time. He still had his original basic account and his wages are getting paid into this. Every month he pays money into Ultimate Reward Account to pay off charges and get back into the agreed overdraft, which he is hoping to clear once he gets a tax rebate that is due him. But because they Keep charging £12.50 to have this account he geats another charge. He can't put any more money in a month.
Sorry I have gone on a bit, but after just finding all this out I am raging, a little at my son for being a bit careless with his money, but mainly at the bank for advising him that this was the best account for him and the £600 he has a month.
If I had the money I would clear his overdraft and close the account. Can anyone give me any advise please, as I don't think the bank should of advised my son to open this account.

I think I would certainly get rid of the Ultimate reward account as it benefits no one but the bank. It seems like a classic misselling technique on package accounts. He was told he could get a better card by paying for extras that doesn't benefit him.

Originally Posted by yourbank

I think I would certainly get rid of the Ultimate reward account as it benefits no one but the bank. It seems like a classic misselling technique on package accounts. He was told he could get a better card by paying for extras that doesn't benefit him.

He will definately be getting rid of this a/c once he can clear the overdraft, but with the monthly charge and the other bank charges they keep applying, this could go on for a wee while.

I have been going through his statements and it looks like they have transfered money out of his basic a/c to cover some of the charges. Can they do this? Son says he wondered why he didn't have any money in his basic a/c when he went to cash machine and thats why he came to me for help.

the Bank of Scotland have got me sooooo maaaaaaaaaaad how can they do this to a young student trying to make a start for himself in life, I think I need to write them a letter, just not worked out what to write yet without it sounding like a rant from a mad woman LOL

Originally Posted by tanasg

He will definately be getting rid of this a/c once he can clear the overdraft, but with the monthly charge and the other bank charges they keep applying, this could go on for a wee while.
I think Halifax can change it to a non charging account prior to you needing to close the account.
I have been going through his statements and it looks like they have transfered money out of his basic a/c to cover some of the charges. Can they do this? Son says he wondered why he didn't have any money in his basic a/c when he went to cash machine and thats why he came to me for help.
The answer is yes because it is called the Right of Set Off.
the Bank of Scotland have got me sooooo maaaaaaaaaaad how can they do this to a young student trying to make a start for himself in life, I think I need to write them a letter, just not worked out what to write yet without it sounding like a rant from a mad woman LOL

Banks prey on the vulnerable, those who's first language is no english and furthermore, those who are not financially astute.
You need to get the account changed first. Then deal with putting in a claim for the bank charges non Ultimate reward related.

thanks for advice,
I will deal with the bank a/c first and I will definately be claiming his bank charges back. He is also going to open a new account at my bank where from now on his grant/wages will be paid, so he has some money to live off. Once his overdraft is clear he will be closing both Bank of Scotland a/cs

Keep us updated on your progress.

After many letters being sent between myself and the bank, as I was not going to give up on this matter, my son has had all bank charges returned, has paid the little that was still due on his overdraft and the account is now closed. Whenever I sent a letter, I always sent copies to the local branch, head office and customer relations team. It was the customer relations team who finally saw sense. Yet when he went to the local branch with the letter saying all charges would be returned, they had no knowledge of this and thought my son had made up a fake letter. He was taken to a wee office, made to feel like a criminal, while the customer advisor (who the bank informs me are not allowed to give advice) made numerous telephone calls trying to trace the person who sent the letter to check that it was real and the details in it were correct.
So to me this is another case of a large organisation not letting the left hand know what the right hand is doing.

This statement was in one of the letters I received from the local branch
"All Banking Advisors with HBOS are regulated by the FSA and as such they are unable to advise customers".
How stupid does that sound? I informed the bank that maybe they should change the job title as it was misleading as I always thought a Banking Advisor was their to give advice on financial matters. Maybe Banking Unable to Advisors would be more appropriate!!!!

Thanks for everyones help and support, this forum is great and it has helped me deal with loads of things.