Thread: Hi there - I am new to this and have a query re A&L overdraft charges

We were charged £25 on our bank account for getting overdrawn for a couple of hours. A&L has only been prepared to pay back £12.50 as a good will gesture...
Let me explain a bit more: A cheque was cleared on our account on 17th April that took us over the overdraft limit. This triggered an automatic charge of £25. HOWEVER, the money needed to cover the cheque was received from another A&L account on the SAME DAY, i.e. by the end of the business day we were actually over £ 1,000 in the plus!!
I've read their business conditions, which say we will be charged £25 for any one day in a monthly charging period that we are overdrawn - but we were only a couple of hours overdrawn (and obviously had no control over the fact that the debit was processed at a different time than the credit.) I have been pointing this out to them - without success.
I know we are only talking a loss of £12.50 here, but to me it's a matter of principle. I just wanted to check whether A&L is acting legally? (If they are, it's scary stuff, as they can make a lot of money by dealing with debits before credits on our accounts.)
Thanks so much for your input.
Kind regards,
Morphoo

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Hi Morphoo,
Welcome to the forum.

Simply yes they are acting legally,But the law says they are acting unlawfully. What this comes down to is they took your money. Which you are entitled by law to reclaim.

Good Luck,
Hod.

Thanks for your speedy reply. However, I don't understand the difference between illegal and unlawful. Is there any court decision I can quote to "prove" that they have acted unlawfully and should therefore refund all of the money they have taken?
Thanks for your help.
Morphoo

Unfortunately, Morphoo, I don't think there's any way you can 'force' them to give you back the other £12.50.

The only way the people on the forum are getting back their charges is to take A&L to court. Do you want to take such drastic steps for £12.50? Maybe this is one you'll have to chalk up to experience - unfair though it is.

Tell me, did you get half the charge refunded after a phonecall or a letter? Sometimes a grovelling letter works better than a phonecall as it gives them more time to consider the situation and save face, than an on the spot conversation allows.

Of course you also have time on your side in that if you were to receive more charges in future you could always add this £12.50 to the list and take the legal route then.

Hi youngandfree,
I used the texting facility on the online banking site to discuss the issue. No, I would not go through the hassle of taking A&L to court over £12.50. But there customer service has generally been quite poor since we switched our account to them, and I might just take my business elsewhere. (I've never come across a bank that charges me for being a couple of hours overdrawn...)
Morphoo

Originally Posted by Morphoo

Hi youngandfree,
I used the texting facility on the online banking site to discuss the issue. No, I would not go through the hassle of taking A&L to court over £12.50. But there customer service has generally been quite poor since we switched our account to them, and I might just take my business elsewhere. (I've never come across a bank that charges me for being a couple of hours overdrawn...)
Morphoo

Yes, Morphoo, their method of accounting is somewhat interesting. Lots of us would argue that we've come a cropper because of it.

Voting with your feet may be the best way of dealing with it. I'm sure you'll make the decision that is best for you and your business, and that you won't make any decision lightly.

Good Luck.