I see thanks for your help on MSE. Thank you for your info & advice. Should I ring them up again tomorrow and pay it all off? Or wait for their letter first? Phoned them today, turns out I need to pay £174.91 and not £214 (first advisor couldn't add up it seems). Currently my account is -£74.91 comprising of all under funding fees and with another £100 due to be added on 4th August for the past month (£5/day capped at £100/month).

I had a premier 21 account which I rarely used and when I turned 22 last Nomber I stopped using it. My account had a small amount of money in (can't remember how much) so I left it with the intention of possibly using it again at a later date. I then received a letter from A&L in May, with "Our records show you have not used your account for some time..." ..."if you do not respond to this letter, your account will go back to dormant status. This means you will be unable to operate your account and if your account is interest bearing, no further interest will be earned." and there was a slip at the bottom which I cut off and sent back indicating I would like my account to be closed and remaining balance transferred to another account. Recently I received another letter from them, saying that my account had exceeded its overdraft limit without an overdraft limit in place. Phoned them today, and was told that the account I currently have (premier direct current account which I never agreed to) requires a minimum monthly deposit of £500, or there would be a £5/month under funding fee applied, which has taken me overdrawn since I never had an overdraft limit in the first place. They said they never received the form I sent back, and unfortunately I didn't send it recorded - stuck it in a stamped envelope and in the post it went. I've been told over the phone that I owe them around £214 in under funding fees and overdrawn charges, and the latter is up to £5 for each day my account remains overdrawn. They have now escalated this to some other department so I can no longer deal with it over the phone. I was told I'll receive a letter within 5 working days, but these daily charges are still being applied as I can't have my account frozen or closed until my balance is zero. Would anyone be able to offer any advice? Are these charges reclaimable? Thank you in advance.