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FantomG

Can banks charge for charges?

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Just wondered if any bank but Lloyds in particular can charge for going over your agreed overdraft limit when it is their charges that have put you over the limit? My understanding was that they could not but thought I best check here.

 

Thanks

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Hi FantomG

 

Welcome to CAG

 

Thats my uderstanding too, they wil no doubt advise you that it's in their terms and conditions. Infact their systems are probably programmed to take advantage of that particular situation.

 

It would be useful if you could provide more details, do you want to try and get it back?

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Thanks for the reply. :)

 

I usually manage to stay within my overdraft limit and I have text alerts so I know if I need to get money in there. I pay £8.95 a month just for the privilege of having my account and then of course there is overdraft interest on top of that. Occasionally the bank charges push me over the limit and due to varying circumstances I can't get to the bank before 3:30pm to pay money in. This results in a £22 charge...which I find outrageous anyway...what kind of interest is that?!

 

So if it happens that the £22 charge plus the £8.95 monthly fee then push me over the following month they charge me yet again. I know it's my responsibility to make sure my account does not go over the limit but it's not a perfect world and circumstances can sometimes conspire to leave you in a situation where you either can't get to the bank or something unexpected crops up that leaves you short of cash.

 

I have just been charged a total of £44 because overdraft fee's put me over last month.

 

I don't see how anyone can justify these fee's. They are ridiculous amounts for for such a small amount overdrawn. I had previously been charged £35 for going £4 over my limit! How can that be justified?

 

Anyway, just wanted to check on the situation re being over my limit because of charges.

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Hi FantomG

 

Well the Supreme court ruled that it was fine for banks to charge penalty

charges because it was part of their core business. But they did say that penalty charges could be challenged, so they left the door open. So if you want to get those charges back with interest. You need to get hold

of your bank statements for a period of at least 6 years. Send them a SAR

Request with £10. Then use the spreadsheets on this site to calculate the

Contractual interest. Once you've got to that stage comeback for more advice.

 

This isn't plain sailing, but is worth doing, rather then accepting it.

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Yes but surely if the High Court ruled it was ok for banks to charge penalties then the bank will simply say they are within their rights and that's the end of the story...especially with Lloyds ? I know they will argue that it is my responsibility to keep my account in order and how do you argue against that?

 

Just wanted to know for sure if they are able to impose charges if the cause of the account being over the limit was their charges? Seems like they are?

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