Help Me!!!! Pleease

[mhenry9885]

Hi,

 

I switched banks from Alliance and Leicester before christmas with the account slightly overdrawn (£85) with the intention of paying it off in the new year and closing the account.

 

Unfortunately I forgot all about it, an insurance company incorrectly took a direct debit payment with took the account over the agreed overdraft limit of £100

 

Alliance and Leicester did not write to me to advise about this for 3 months and they have added their £5 a day unauthorised overdraft charges plus others on. They are now attempting to collect £653 from me and have made mince meat out of my credit rating.

 

I am aware that the Direct Debit guarantee allows immediate refunds of incorrect payments made but does this include the charges that have accrued as a result of this?

 

I have written and complained but responded with garbage saying that the charges are correct and that they won the court case!

 

Thanks

 

Matt

[rebel11]

The Direct Debit Guarantee only covers money thats been debted by a Direct Debit.

I don't think all is lost. An expert will be along shortly..

Edited April 13, 2010 by rebel11

[lennyp1ke]

hi there i hope someone puts on a decent and knowledgeable reply as im in much the same situation as yourself only i didnt set up an agreed overdraft . i actually was £3 in the green and the atm let me take out a tenner then the account snowballed from then on till around the same as yourself.

i have also recieved the charges are correct and that they have made their final decision......

[the_freedom_trail]

Hi there,

 

Firstly, there is no obligation on the bank to provide a safety measure that will prevent you withdrawing more than your available balance. My advice would have been to make good the account as soon as possible in order to prevent charges building and possible damage to your credit record.

 

However, it appears that the matter has gone past that point now. As you will be aware the bank charges test case verdict put pay to disputing the fairness of bank charges based on their value or the fact that they are penalties. That said, you can still challenge the fairness of the circumstances in which the charges were applied aswell as the fairness of the relationship between you and the bank that allowed them to levy the charges from your account in the first instance. You would now have to use Reg 5 of the UTCCR 1999 and Section 140a of the Consumer Credit Act 1974.

 

Mike Daily is a solicitor who is representing a bank charges victim who I believe will be the first to test this new argument in the scotish courts in a hearing set for June this year. Follow this link for further information.

 

Sheriff gives go-ahead for bank charge cases - Herald Scotland

 

So in theory come the middle of the year you may fnid that there is a reasonable prospect that you too can recover/have removed your charges under the use of this different legislation.

 

If you dont want to wait and go the court route you could go down the route of making a complaint to the FOS (Financial Ombudsman Service). Now, a bank will have to pay a £500 referral fee if you make a complaint to the FOS so they may be inclined to resolve the matter before hand. The FOS will be more interested in the circumstances surrounding the charges being applied to your account rather than wanting to see a templated legal argument. Personally, I think you would stand a good chance given that your problem was caused my such a minor error; however, it would depend on your previous account conduct - you wont fair well if you haven't been a good customer I'm affraid.

 

May I ask, how much in charges have you managed to rack up so far?

 

Best Regards,

 

TFT

[lennyp1ke]

Thanks for the reply appreciated ....

i think the charges are at 675 or so and they have said that the account was frozen but i must check my credit rating as god knows what the swines are up to behind my back , and their cust. service aint very helpfull either ....i have informed the financial ombusman and will try that route....

 

thanks again