Cashcard to Service Card

[sequest]

I opened a Bank Account for my son when he was a child. The only card he has been given was a Cashcard.

 

Recently the bank wrote to him to say they were upgrading his card to a Servicecard which would give him extra facilities.

 

Within a week informing him that they would upgrade his card, they now want to charge him a £30 Referral fee because, he made a few payments from his Cashcard, (he checked his online balance before making each payment and his account was in credit),

and his account went into overdraft by a few pounds and only for a few hours.

 

It would seem that the online balance does not show available balance which in itself would seem to be a deliberate ploy to facilitate their plan to charge for overdraft.

 

Does anyone know if they can legally do this as he paid with his Cashcard which should not allow overdrafts. They have not sent a Servicecard to him to date.

Edited September 1, 2009 by sequest

[sequest]

Just to add, My son received a "Paid Referral Fee" notice, is it likely they will also send another notice for their "Unpaid Item Fee" charge? as they could try and charge over £100 in total. Do they normally charge both?.

 

I believe one or more payments may not have been paid for with the cashcard, but with a bank transfer.

 

Thanks

[purplecatlover]

natwest charge referal fee(for something they paid even though the money was not available)/unpaid item fee(when the return or bounce a payment) one month, then the next month a fee for being into an anauthorised overdraft either because they paid the item instead or bouncing it or because they applied their charges which sent you into an not agreed borrowing.

[Guest wino]

How old is your son? Is he over 18?

[sequest]

Apologies for late reply.

My son is now over 18. I opened his account when he was a child. The agreement, as far as I am aware, did not allow overdrafts of any kind. Therefore, legally, would he not have to agree in writing to be allowed an unauthorised overdraft?

ie. they have changed the terms and conditions of the original agreement without consent.