Bank Charges Imminent

[harrassed senior]

Can anyone please point me in the right direction for a template letter etc. with regard to imminent bank charges which will be taken entirely from benefits. My daughter, who has 6 children and relies entirely on benefits has just been advised that charges totalling in excess of £200 will be taken next week from her bank account.!!

[shakespeare62]

I'll see what I can find ..hold on..

[shakespeare62]

May I just confirm is this for a current bank account, or is it for a loan or credit card agreement ?

[harrassed senior]

Many thanks - it is an ordinary current account

[shakespeare62]

Ok, here is an interim letter you could fire off. It would be helpful though if you could post up here, some more info on they type of account, and the type of charge the bank is going to levy - so we can tailor the response.

 

On the word doc, I've included the URL where you can find a bank charges template letter - I've adapted the Credit / Store card template letter (article 11)

Bank_charges_help.doc

[shakespeare62]

More Bank Charges template letters can be found here :-

 

The Consumer Forums - Bank charges templates (consumer)

 

Others may suggest a better response - mine is only a suggestion. Basically you are making a complaint to the Bank regarding what you view as unfair bank charges. The issue of Unfair Charges, as far as I know, is the current subject of a Court Case between the OFT (Office of Fair Trading) and a group of six major high street banks.

 

The Banks have appealed against a Court of Appeal ruling which found that the OFT has the power to determine what amounts to an Unfair Bank charge under the UTCCR 1999.

 

If the Bank failes to investigate your complaint, you have a right to refer the matter to the Financial Ombudsman Service (FOS)- so it is important that you establish a 'paper trail' of correspondence which you can copy to the FOS should this be necessary.

 

A tip, I would recommend sending important letters to the Bank by recorded delivery if possible, failing that, you can obtain a free Certificate of Posting from the post office counter when you hand in your letter. The post office will stamp this certificate which is proof that you've posted the letter.

[harrassed senior]

Thanks, I will go and have a look. This is my daughters' Abbey current Account. She has an agreed overdraft which just after the last statement went over the limit by less than £5, which she did not notice for a few days, by which time several DD had been declined and charges for those went on at £35 a time. She has just received this months' statement which says that these charges amount to just over £200 will be deducted from her account on 24th June.

 

I am going to get her to open a parachute account as I know from bitter personal experience how hard it can be getting off this particular slippery slope and I know I read somewhere that there is a banking rule somewhere that if you write some type of letter before the charges are taken, they cannot be taken from benefits.

 

Hope that makes sense.

[shakespeare62]

I was just going to suggest a parachute account.

 

Also, there are visa cards you can get from the Post Office, Virgin Credit Cards etc. where they work on a pay as you go basis - similar to a mobile phone top up card. These require NO CREDIT SCORING. What's in it for them is a simple fee of say £5 per month to use it, or alternatively a small percentage comission on each purchase etc depends on how much use you anticipate on the card...

 

I'll try and find some links to them later. The only requirement is I believe to produce proof of your ID and address when you sign up for them.

 

Basically it's a Mastercard, which works like a debit card. So you can only spend what you've put into the account. Still ..might be helpful when if your bank gets vindictive - if they do then, you may well be able to claim back all unfair charges for the last 6 years.

[cerberusalert]

The Co-operative bank does a basic 'Cashminder' a/c with a visa/electron debit card, you can pay cash into your a/c at any Post Office or bank and it's credited to your a/c straightaway & you can use the card like a credit card as long as there are enough funds in the a/c (with no charges). There are no credit checks for this a/c.

[shakespeare62]

Here's a link to some more (I used the Google search term "pay as you go Mastercard")

Need a Prepaid Credit Card? Get a new Prepaid MasterCard from MyCashPlus, a pay as you go credit card.

 

The Virgin Pay As You Go MasterCard

 

I've heard the CashPlus card mentioned previously somewhere on the forums. However, always research carefully before giving your details to anyone or any company.

[shakespeare62]

went over the limit by less than £5, which she did not notice for a few days, by which time several DD had been declined and charges for those went on at £35 a time.

 

That sounds like outrageous bevaviour by a bank. I think the OFT has calculated that the actual cost to banks for someone going over the limit (and writing to them etc.) can actually be as little as £2 or less.

 

Remember to address your letter to the Manager of their complaints section if possible.

 

I would include your explanation above, in your letter, point out that your daughter went over the limit by a few pounds and she has been charged the above amounts. I would state that you would like a refund or the charges to be cancelled.

[lilly white]

Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx

 

I am writing to inform you that I am due to have a Tax Credit payment of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes;

Rent £xx

Utilities bills £xx

Housekeeping money £xx

I will withdraw the money on the day that it is deposited for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

 

H look up right of appropriation i believe it is law

 

hope everything ok with you

 

lilly

[harrassed senior]

Thanks guys, I am like a mother hen protecting my young even if she is nearly 40 and should know better by now;)