Natwest Unfair Bank Charges

[Daze]

Hello everyone,

 

On the 22nd August I paid for around 8 GBP for a bag of shopping at my local co-op with my Visa Solo Debit Card, on the 5th September I was charged 60 GBP by my bank (Natwest) and then two weeks later, another 60 GBP.

 

It was only when the second 60 came out that I actually noticed, I had to call Natwest and asked where it had gone (since I hadnt received my monthly statement) they basically told me that because I tried to pay for goods with no money in my bank, that I had been charged.

 

I found this odd, as I usually check my card at an ATM machine every time I use it to make sure the funds have gone out.

 

Baring in mind I had no overdraft facility on my bank, and usually if there are no funds in my bank my card is never accepted, I also stated that I had checked at an ATM before/after the card transaction. So somewhat puzzled, I queried Natwest further.

 

The situation was simple, or so I was led to believe, when you make a payment with a debit card in store for items/service/other, Natwest holds onto the payment for 48hrs for the company involved to collect it (in my case, co op) if the company fails to accept the funds, then it is re-imbursed back into your account.

 

Apparently co-op had tried to take the money from my bank two weeks after I had initially paid for my items, when there were no funds in my account, hence why Natwest felt it wise to charge for what is to me a colossal amount of money, I am totally disgusted.

 

After speaking to both parties (co-op and Natwest) they tend to agree on the same thing, that it is really no fault of my own, yet Natwest are not prepared to reimburse me the charges, and co-op barely seem interested in speaking to me about it.

 

It seems that Natwest are hiding behind their terms and conditions, which more or less state that if I didn't make sure there were funds in my account at the time, then it is no fault of theirs, which I can agree with to a certain extent IF I had paid 8 GBP for a bag of groceries by direct debit, and I had KNOWN the money was going to removed by that time.

 

Co-op on the other hand are hiding behind the law, the law states that they have 6 months in which to collect the funds from my account. So what they did wasn't illegal, just EXTREMELY inconsiderate (or so I have been told anyway).

 

I really do not know what to do guys, the CAB told me that I should write a letter of grievance to co-op, yet after being met with a cold stern attitude on the phone, perhaps I should chalk this one up as a loss?

 

With technology these days being as advanced as it is, you would think that debit card payments in store would be instant (or so I always thought), what's the world coming to if a man cant pay for an item which doesn't even equate to double figures in value, without being lumbered with a hefty charge two weeks after entering his PIN number?

 

Thanks for listening.

[yourbank]

A switch transaction via a solo card(NatWest are due to go to Visa debit card towards the end of next year) work the same as a cheque. They are valid for 6 months from the date of authorisation. I have never relied on a cash machine or a balance to tell me what I have to spend.

 

I had merely read up to the paragraph ending with the phrase "co-op barely seem interested in speaking to me about it." And then I read the rest of it which kinda said what I was about post. I agree with you about CHIP and PIN terminals but there are occasion where a transaction is not fully completed and therefore will debit the account at a later date. I think you need to start the process of reclaiming bank charges.

[davethorp]

I'm guessing natwest just took the money and didn't actually forewarn you of their intention to do so.

 

In that case go back to Natwest and tell them that section 5.5 of the banking code requires them to give you 14 days notice prior to taking any charges.

 

Yourbank:

 

Interesting about Natwest moving to visa debit. I seriously hope that they dont issue all their solo customers with a visa electron card or I'll be seriously miffed that they are replacing my card with a worse one

[yourbank]

That is what I have read davethorp on MSE(i commented like a donkey without actually researching it). It would offer better protection because of the VISA element to it. Maestro offers very little protection to consumers.

They are not in breach of the Banking Code 5.5 which states:

5.5 Before we take interest or charges for standard account services from your current or savings account, we will give you at least 14 days' notice of how much we will take.

 

I think the OP got 2 maintenance charges which are pre advised plus 2 Guaranteed Card Payment Fees which would not be classed as "standard account services".

[davethorp]

If they aren't standard account services than perhaps the people involved in the test case should take note if that is Natwest's official stance on the charges. Every other bank apart from the RBS group to my knowledge complies with the code and gives notice (interestingly the last time I complained to Natwest about charges, they totally ignored the issues I raised about the banking code and just gave the standard charges response.... ie test case blah blah blah)

 

Certainly a visa electron card would be better from the protection aspect however it is still not as widely accepted particularly online. I would prefer a solo card over visa electron (or alternatively, Natwest to follow Lloyds TSBs example and issue a visa debit card with their basic account)

 

I think I'll be switching banks pretty sharpish if they try to give me an electron card

[yourbank]

Dave you have misread my post, Unauthorised borrowing ie Maintenance charges IS pre advised with any interest. But sudden charges ie Gauranteed Card Payment Fee is not pre advised.

 

 

EDIT: not sure what they are doing on the cards bit as articles I read suggested end of next year that they would be issued. When I know, I will give you a shout.

[Daze]

That is correct, no forewarning or notice was given to me about these charges at all.

[Daze]

What's the most appropriate course of action?

[yourbank]

What's the most appropriate course of action?

 

Reclaim bank charges back. The bank will not refund the amount.

[Daze]

Sorry to be a pain, but whats the difference between reclaiming them, and them being refunded?

 

So Natwest have told me they're not prepared to budge on this, yet i can actually reclaim the charges?

[Iaintpayingyoudotcom]

Whilst Natwest are waiting for the charges case, I have noticed that Money goes back into your account after you have paid it. Then if u spend it, it goes out almost immediately and you go over drawn. I wonder if they planning to add up the charges when the case is Answered.

[yourbank]

Sorry to be a pain, but whats the difference between reclaiming them, and them being refunded?

Being refunded means the bank will refund them, reclaiming them does not actually mean that they will refund them as the OFT test case is on going. Once the Test case is completed is when the bank may or may not refund charges based on the final decision

So NatWest have told me they're not prepared to budge on this, yet i can actually reclaim the charges?

Yes you can start the process. There is no moratorium on bank charges so the bank may still charge you during the process which can be added to any claim.