Nationwide basic account bank charges *** ALL CHARGES REFUNDED ***

[Peterbard]

Hi

 

I wonder if anyone has any information about the legality of the above,.

My son has a basic account which does not have an overdraft facility, and he has accumulated several charges for returned direct debits.(£15 a pop)

 

My probably simplistic understanding of the Supreme Court ruling was that the bank charges were legitimate because they were a core or ancillary term and in effect a fee for consideration of an overdraft, of course this is not the case in a basic account, as an OD is not an option.

 

If this is correct is there cause for an action for reclaiming these charges under the UTCC'S and under common law as being an unfair (penalty)

[renegadeimp]

Is it causing him hardship?

[Peterbard]

Is it causing him hardship?

 

No not really, it is causing me hardship because it is us that has to keep bailing him out .

 

I am just wondering if there is a possibility of a successful claim.

[BRIGADIER2JCS]

Returned DD charges are legitimate, an account holder (basic or other) must ensure that funds are available to meet obligations (£12) is considered fair.

[Peterbard]

Returned DD charges are legitimate, an account holder (basic or other) must ensure that funds are available to meet obligations (£12) is considered fair.

 

The supreme court ruling mentioned nothing about these charges, also the £12 you mention relates to the OFT decision regarding credit cards,"fairness" was not an issue in either case.

 

Returned DD charges can only be a penalty on this kind of account, as there is no alternative service on offer, therefore they must be proportionate.

 

In any case all charges have been refunded now after my letter to them, so all is well.

[Old Cogger]

Try and get the charges back from Nationwide/HSBC and others even under genuine hardship cases _///////???????? BEEN TRYING FOR 5 YEARS FOS ARE USELESS and listen to lies when evidence is in front of them showing the lies. They seem to be trying NOT to make precedence.

[ims21]

 

In any case all charges have been refunded now after my letter to them, so all is well.

 

Good stuff Dodge.

 

Was there any particular angle you took in your letter for example unfairness, disproportionate etc?

 

I ask in case in might help others.

 

I'll amend your thread title.

[Peterbard]

Basically the points raised in my first post, this kind of charge has not been ratified by the Supreme court decision, it is not a core charge nor is it ancillary to the contract, in that it could not be considered a choice or application for an overdraft as none is available on this account. Therefore it must represent a penalty if not reflecting actual costs incurred.

 

Of course the refund came with" as a gesture of goodwill" letter and it was only 60 odd quid, but still.

[ims21]

[citizenB]

This is good news, DB. Well done

[Old Cogger]

Basically the points raised in my first post, this kind of charge has not been ratified by the Supreme court decision, it is not a core charge nor is it ancillary to the contract, in that it could not be considered a choice or application for an overdraft as none is available on this account. Therefore it must represent a penalty if not reflecting actual costs incurred.

 

Of course the refund came with" as a gesture of goodwill" letter and it was only 60 odd quid, but still.

 

 

aH! A Small amount = a win, I will in the letter I am sending HSBC CEO quote:- part of your statement but the amount I am after is a lot more , so will see as that is another angle, they have ignored BCOBS so far. Thanks.

[suitedandbooted]

Read with interest. I opened an account with Nationwide last year - did not use it until I decided to pay my insurance from the account so set up a direct debit. I paid the money into the account but insurance did not take the money from the account and I later withdrew the money a couple of days later. Now 4 months later I have received a letter from Nationwide stating that I am £65 overdrawn - all due to charges. I have not received any letters before this one about charges, I would have thought they would have informed me the first time they charged me and the second and so on? shouldn't they have?

[BRIGADIER2JCS]

Read with interest. I opened an account with Nationwide last year - did not use it until I decided to pay my insurance from the account so set up a direct debit. I paid the money into the account but insurance did not take the money from the account and I later withdrew the money a couple of days later. Now 4 months later I have received a letter from Nationwide stating that I am £65 overdrawn - all due to charges. I have not received any letters before this one about charges, I would have thought they would have informed me the first time they charged me and the second and so on? shouldn't they have?

 

 

A DD is paid on or after the due date, sometimes my DDs will go out a couple of days after the due date on week ends or bank hols.

 

 

So if the funds were not available because of your actions and the bank paid the DD as many will with insurance payments I think there is little to be done.