PinkPuli's child and Natwest

[pinkpuli]

A similar scenario to MUSETHER and NatWest (see that post). My daughter aged under 18 and still at school receives Educational Maintenance Allowance for school expenses because our income is below a threshold. It is paid into her Natwest account each Friday. She also has a small income from waiting on tables at the local pub on Sunday luch and earns £10. She went £10 in the red at Natwest over Christmas. and they have charged her £38. Branch said could not refund and rang her with number of payment hotline where she may be able to negotiate paying some off per week.

Having read advice on CAG I drafted letter to branch reminding them that she was a child, that to give her an overdraft was illegal and pointing out that the bulk of the money paid into the account was effectively local authority benefit monies for without it she cannot get to school (she has train journey to and from school each day.

In reply from regional centre a fw days later we receive standard letter re bank charges, it does not address the fact she is a child nor that the monies they are taking are monies given to her by local authority to go to school with.

What should we do now?

[Guest vortex]

They have to refund £38 because she is under 18. Go with your daughter into the bank and point out that she cannot be charged while under 18. If they have declined the refund at branch then speak to Customer Relations Unit and state that as a minor she cannot be charges especially as it takes her into an unarranged overdraft because the bank cannot give credit to someone under the age of 18 under the Consumer Credit Act. They will refund. If it is 1 charge the manager should have refunded the amount same day as it within manager's refund limit.

[pinkpuli]

I tried the branch first who refused, I then wrote formal letter to branch and they passed it on to regional centre who then sent standard letternot answering the points that a) she is a child and b) the funds going in to the account are mostly local authority grant monies for her to get to school with.

[Guest vortex]

I think you need to emphasize that she is UNDER 18 and therefore by charging £38 they are in breach of the Credit Consumer Act by giving credit to a minor. I would still call Customer Relations Unit tomorrow or rather get her to call them. The Branch are not taking into account her age. I would make sure the branch have her age correct on their systems cos that does not sound right at all.

[pinkpuli]

They do know her age as I went in with her and stressed it to them. She is 16 but looks 13 to start with so it really is obvious.

[Guest vortex]

They should have refunded so Customer Relations Unit time. And ask them for a final response because the Financial Ombudsman Service will take a different view and it will cost NatWest £400 if you take it to them, far in excess of what the bank has charged a minor.

[sammyb2005]

What was the charge of £38 for??

With natwest a charge for £38 will be triggered when an item is returned unpaid ... ie a direct debit.

Or is the charge a £28 ubf?

[Guest vortex]

It would be £38 because the maintenance charge of £28 is not applicable to the Adapt/Card Plus account.

[pinkpuli]

The pence overdrawn was that the hole in the wall allowed her to take £10 out of the account when there was only £9....... in the account.

 

I wrote a stongly worded letter to head office and daughter received phone call today to say it was being credited back to her account. How many other people have been put in this position and not had the support of CAG to argue their case and just had to live with it.

 

She also received a letter today advising that her account was to have a default notice put on and her overdrafted terminated unless she paid up the £38!! Left and right hands come to mind.

[Guest vortex]

it has crossed each other BUT I knew that they would refund. The branch decision is based on current "hardline" policy of the bank but the age of an individual HAS to be taken into consideration in this case.