Thanks for your responses. I imagine the t&cs might have contained something on a minimum funding amount but I have no recollection. I'm surprised they didn't send me a letter reminding me that I should be putting in the minimum amount otherwise a charge would be levied. I think banks stipulating that you should have one of their accounts to be paid into is standard practice unfortunately, I have now moved to another banking group where it is the same. Thanks again

I am experiencing similar problems with A&L. I worked as a marketing manager with the company until November 2008 when it became apparent that my job was under threat due to the Santander takeover. As part of my contract, I was required to have an A&L current account for my salary to be paid into. I opened a Prem Direct a/c for this sole purpose - my salary was transferred out immediately each month into my everyday account. When I left the company and moved to another bank in the region I didn't give the account another thought. The balance was at £0 so this seemed pretty risk free. I got married the following December and took a 4 week honeymoon in February/March 2009. When I returned I was shocked to find a letter from A&L informing me that my account was in arrears and that I was being charged £5 a day! I couldn't understand how this could have happened, as far as I was aware the account had never been used other than as a means of receiving my salary. When I looked into it however I found I had been charged 2 x underfunding fees taking me overdrawn - obviously as I was no longer an employee no money was being paid in! It was a bitter pill to swallow but I paid the charges amounting to nearly £200 which I found to be grossly unfair considering I would have never have had the account if I hadn't worked there. But with the £5 charge added every day I was overdrawn I simply had no other option. I never received any letter advising me I needed to fund my account, the underfunding fee was simply applied, with the £5 charge commencing immediately after. However it is only in the last few days I realise to just what extent this mess is having an adverse effect on my life. Having been forced by the Santander takeover to move jobs, I now work for a credit card company in Northants with a lengthy commute each morning. As such I decided to move closer work and both accepted an offer on my existing house and had offered accepted on a new one close to Northants. When I went through what should have been the relatively simple process of porting my existing mortgage I was shocked to find our application to be declined due to a poor credit rating. I keep tabs on my score and knew less than a month previously I was deemed to be rated good - excellent. When I rang Experian they advised that it was more than likely the A&L account dragging my score down and that I should ask them under the circumstances to remove the status of the accounts via a rapid update. So I called A&L and was informed that I would have to put my request in writing. I rang the following day to ask for the address again (I couldn't find where I had originally written it down) and was informed that it probably wasn't worth writing as they would not carry out my request as they had a duty to inform other companies that I was a high risk! I was simply astounded - I had only opened the account to receive my salary into! When I explained I was away on my honeymoon and as such not received the letter or logged into my account, the advisor had the audacity to say that had it been him he would have checked regularly, even if away on honeymoon. I can't believe I am likely to lose my new home because of a £5 charge levied by A&L under such circumstances. Can anyone offer any advice? Thanks