Had a pile of bumf from RBS listing changes to T&C's etc. I had a good look through them (I do this now :grin:) and noticed there is something new called a Guaranteed Card Payment Charge - I will check exact wording when I dig it out my filepile but it basically says:

If you make a debit card payment and you guarantee this payment, the bank must pay for the goods etc whether funds available or not - if no funds available we will have to charge you £38 for this.

Low & behold my partner was hit with this charge that very week. He did a perfectly normal debit transaction, nothing different and the company took their money a week late when no funds were in. The bank paid them then charge us as he apparently guaranteed the payment.

How exactly do you do that then? No-one at the bank can explain how and these changes to the T&C's are not to come into force until March I think. Anyhoo, will be asking for it back and a proper explanation but has anyone else heard or been hit with this?:-?

Hi dipply

I have a new card and it says something about guarantee and that will be indicated on the reverse, bottom left. I haven't had a good read of the conditions yet.

Hi Conniff, I think youre right, that seems to be what new cards being issued have on them, 2 other folk I know have noticed this 2. My partners card is 2 years old, so still only has the cheque guarantee bit on it.

So does this mean it is more like a credit card then? They will pay for the goods no matter what?

V strange, I thought the whole idea of a 'debit' card was that it debits from your balance, not creating more debt! Thing is, companies can hit your account whenever, so you would have to be mega aware of whats in your account every day just in case, especially as its an instant charge.

MMMMMM......

I e-mailed the bank asking some basic questions about this charge:

Why was it applied in Jan when your 'changes to T&C's' leaflet states the changes take effect on 7th March

How exactly do you guarantee then payment with your debit card as opposed to just making a standard debit transaction?

If there is no seperate procedure and all my debit transactions are now 'guaranteed', have they essentially turned my debit card into a credit card?

Received a bog standard letter back saying they apply this charge if I guarantee the payment with a debit card. Thats it. They haven't answered one question at all.

The definition of a debit card anywhere I've looked is - to DEBIT from your balance'. A credit card gives CREDIT to purchase or withdraw funds, creating an AGREED debt.

If RBS now say that your debit card gaurantees payment, they are saying they will (if no funds available) give you credit, create a debt. Not only that but charge you instantly for the pleasure?

My question is, could this be regarded as an unfair term in a contract? They have changed their T&C's which will defintely cause the customer detriment. I mean, I understand you have a responsibilty to have funds in your account but debit transactions can hit willy nilly, it is not an instant, done deal service like a credit card so major problems can arise very quickly unless you watch your account like a hawk, twice a day!

Worth contacting the FSA?