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Overdraft. Interest and Charges


Retch
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Hi all, I have a bank account with Natwest. Originally the account was a student account. In 2004 the bank wrote to me, informing me that as I was no longer a student, they would change my account to a standard current account. I didn't need to do anything, (or sign anything).

 

I later found out that the authorised, interest free overdraft facility I had on my student account was no longer interest free. In fact it was an overdraft on the highest rate of interest. This only really equates to an average of £11.00 per month interest on the £800.00 balance. But as I have been a full-time parent since 2004, I've never paid off the overdraft. I wondered if I'm entitled to claim this back, as well as any charges?

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hi retch, you can claim back the charges and the interest applied on the charges only ie if youare 30 pounds and you go overdrawn by it then the the interest applied by this charges can be reclaimed.

as you have agreed to change your bank account you cannot claim the interst back as you agreed to this rate when they change your type of account. i hoe it does make sense but i wonder why yo uhaven;t signed anything did you have any informaion given ot you before the cahnge as to specify the new interest rates , etc....

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A couple of times, when I visited the bank they asked me if I would be interested in swapping my student account for a standard account. I kept saying no. But eventually they changed the account anyway.

The account number I have and the card for that account stayed exactly the same! But, the account statments are now titled "Standard account" instead of "Student Account". Interest was being applied to the overdraft.

 

The account even shows that it was opened in 2004. I did get a leaflet through the post explaining the new account and it's charges. But this isn't an account that I signed to open. I know this is true because wage slips I have from a job that I took AFTER leaving Uni have the same account number as my "new" standard account.

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I'm not too sure on the legalities of this situation but I do know that the change of accounts from 'Student' to 'Standard' is normal.

 

You don't get a 'new' account, your current account just changes 'type'.

 

I think it's usually accepted (not 100% sure if it's in the T&C's though) that you can only get student accounts if you are still a student and once you leave, you get transferred to a normal account (usually automatically after 3 years).

 

I had a similar problem with you. I was on a 4 year masters course and skipped a year therefore was technically a student for 5 years. HSBC wanted to change my account from a student account to a standard account at the end of year 3 but I went to the my bank (HSBC) and asked them to extend the status (i.e. keep the overdraft interest free) until I actually graduate. They required me to provide proof I was still a student (a stamped letter from my university) before they would extend it.

 

When it eventually did change into a normal account, the account number stays the same.

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