Are those bank charges excessive or am I just mad?

[Lockheed]

I am an EU national and have been studying in the UK for my Masters.

 

After submitting the dissertation, in November I went back to my home country. Before I left I left my bank and credit card account on 0.

Back home, I used my NatWest credit card to purchase a plane ticked for the congregation held in January, hoping to pay it back in mid Jan.

When I came back I discovered the following:

 

- My Direct debit has been cancelled due to empty bank account.

- In November bank charged my Credit Card account with ‘Unpaid Direct Debit’ (1,70) and ‘Return Payment Fee’ (10)

- In November bank charged my Credit Card account again with ‘Unpaid Direct Debit’ (5), ‘Return Payment Fee’ (10) as well as ‘Late Payment Fee (12).

 

When I came back and found those letters in my mailbox I as quite upset for it is a lot of money to me. However, I though I can get by paying just the ‘Minimum Payment’ and over time I would eventually pay it in full, somehow.

 

Unfortunately, then I checked my bank account, which I believed was still at 0. I was wrong. Each month bank charged me there another fee of 38 pounds:

28th Nov 07: CHG Unpaid item, D/D 1.70 Natwest MC 38.00

28th Dec 07: CHG Unpaid item, D/D 5.00 Natwest MC 38.00

 

Now, not only my credit card is on -150 but my bank account is on -76 pounds and I can’t really see a way out of it.

 

I went to ask the people in the bank if it's some kind of a joke but unsurprisingly they said it's all good.

 

Are those charges lawful? Can they charge me three times for the same thing? Can they charge 38 pounds for not paying 1.7 quid?

 

I must admit I am very surprised with banks' conduct in this country.

[maroondevo52]

Hi, Lockheed.

 

No, your not mad, everyone in the UK is mad at having to pay our unbelievable bank charges. At the moment people in the UK are taking the Banks to court to claim back these charges

Have a look at this......

 

http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/31460-example-step-step-instructions.html

 

There is a major court case going ahead at the moment to determine whether or not these charges are lawful. All court claims have been put on Hold, until after the outcome of the 'Test Case' (this could take a very long time).

Have a look at this........

 

http://www.consumeractiongroup.co.uk/forum/general/107550-oft-test-claim-what.html

 

Start your claim as soon as possible, so after the 'Test Case' you will be at the head of the long line of people asking for their money back.

 

Hope you understand what I'm trying to say.

 

Regards.

 

Scott.

[Lockheed]

maroondevo52, thank you for your answer. I am just composing my letter of complaint based on a template from the library.

 

I have a question, though. I want to claim repayment for both 78 pounds on my account and charges on my credit card. Should I just sum up all those charges and regard them as charges on one account or should I break them down to my account and credic card separately?

In case of the later - I am quoting my Account Number in the letter header so should I also quote my Credit Card number?

[shywazz]

Are you saying you left the country with your account showing nil balance, then while you were away, a Direct Debit that you didn't cancel was tryed to be taken from one of your accounts, with nil funds, the DD was declined and you were charged for this... You should have cancelled ALL Direct Debits before you went... if the funds are not available and you havn't arranged a agreed overdraft, then the bank doesnt have to honour the DD .... and can charge for refusing the DD request...

With respect your Credit Card account, you bought a ticket in NOV, hoping to repay the money in JAN, you only get 56 days before intrest and payment is due, so you didnt make any payment towards the balance on the CC hence you were charged for missing payments....

 

You had DDs coming out and had no funds to cover them in the account, banks don't pay DDs for free, you have to have money in the account for them to be honoured...You bought plane ticket, but made NO repayments, CCs dont give money away, its Credit not freebie.....

[Lockheed]

Yeah, I know it is not freebie. You said I had 56 days. I bought the ticked in late November and wanted to pay it in early Jan so it would be under 56 days.

 

By the way, I'd like to ask if it'd be better to apply for another account with different bank so that my benefit won't be eaten by the debt?

[shywazz]

hiya

 

Its 56 days for CC transactions not for the normal bank accounts, so if you didnt have funds to cover the Derict debits which you state you didnt as your account was zero, so you will be charged for the bounced DDs

 

The CC account, did you have a limit on the card, did you inform them you were leaving the country ? there might have zeroed your limit due to you leaving the country, check your account...

 

Banks can try to take charges from any money placed into your account, however there is a letter for you to send to the bank, explaining the money going in, is that of benefits and is needed for things like food etc etc, once the bank gets this letter, there shouldnt take it from you, browse the site on letters, it will be there somewhere, if you cant find it, just yell and ill go find it for you....

 

Have you thought about crediting one account with funds from another that way you will only owe on one account rather than two, hence less charges...

[maroondevo52]

Hi, Lockheed.

 

Have a look for another account here.......

 

http://www.consumeractiongroup.co.uk/forum/general/13832-do-you-need-parachute.html

 

And have a look at this.............

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/42170-right-appropriation-stop-bank.html

 

Regards.

 

Scott.

[Lockheed]

Thanks, Scott. One more question - should I address the letter to the local branch (as their website suggest) or HQ of the bank? Should I make any notes on the envelope, like "to legal department"?

 

Should I also apply for a return of UNPAID DIRECT DEBIT which is 1.7 and 5 pounds, or is this charge justified?

[maroondevo52]

Hi, Lockheed.

 

No the £17.50 unpaid direct debit charge is not justified.

 

You don't have to put anything extra on the envelope.

 

Have a look at this........

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/15518-charges-description-statements-please.html

 

Here's the Banks contact details......

 

http://www.consumeractiongroup.co.uk/forum/natwest-bank/74934-natwest-contact-information.html

 

Send your letter Recorded Delivery, the Bank has to sign for it when it arrives. So later they cannot say they did not get it.

 

Regards.

 

Scott.

[Lockheed]

Thanks a lot. This forum is extremely helpful.

 

Just a note, the Unpaid Direct Debit was £1.7 + £5 = £6.7. Judging from the link you gave, it is the name of a charge that counts, not the amount?

 

I composed one letter for my bank account and MasterCard account and just wanted to confirm that the same rules apply to creditcard account and that I can claim refund for both accounts using one single letter. So, can I?

[maroondevo52]

Hi, Lockheed.

 

You should do two separate claims. The Credit Card claim is slightly different, here's the template letter......

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/586-credit-store-card-letter.html

 

Regards.

 

Scott.

 

 

 

[Lockheed]

A little update on my case. In March '08 NatWest told me every claim is being held due to the Test Case. Now, I stopped following it for some time but when I went to the bank April '09 I discovered, that they secretly added even more charges to my account. Secretly, because the statement shows -76GBP but after I investigated they admitted that even if I pay it in, there will still be somewhere around 30-50 quids to pay (can't remember from the top of my head).

 

So, my question is twofold:

1. Can I finally do something about the case I described in the initial post?

2. Are those new charges for the previous charges legitimate?

[yourbank]

A little update on my case. In March '08 NatWest told me every claim is being held due to the Test Case. Now, I stopped following it for some time but when I went to the bank April '09 I discovered, that they secretly added even more charges to my account. Secretly, because the statement shows -76GBP but after I investigated they admitted that even if I pay it in, there will still be somewhere around 30-50 quids to pay (can't remember from the top of my head).

 

So, my question is twofold:

1. Can I finally do something about the case I described in the initial post?

2. Are those new charges for the previous charges legitimate?

 

The charges were levied last year because of insufficient funds, and because the DD was bounced twice it was cancelled by the bank. You can claim all the charges from the credit card apart from legitimate spending(I think you said £1.70) and all the charges from the current account including pending charges but you will have to wait for the OFT test case result for the current account charges.