Advice needed on not paying a bank charge, please.

[Laura19]

Hello, my story is...

 

I recently (November) opened a gold account with NatWest, which charges £12 a month. I originally didn't want the gold account, just a normal account, but I was told if I wasn't happy after 3 months then I could cancel it and get a full refund of £36.

 

I started a new job and at the time of opening the account, I had no money in it. They deducted the £12 from the account, putting me overdrawn and charging me £28 in bank charges. This was on the 30th of November. The next day (1st of December) they added another £28 as it was the next month. I didn't know anything about it till January when I got a bill through for £7.88?!

 

I was confused and so I phoned them.. They told me I owed them £120! I went to the bank and said I wasn't happy with the gold account and so they downgraded me to a normal account, rufunding me £36.

But... they still want me to pay £84 in bank charges even though the money that put me overdrawn in the first place has been refunded!

 

I know it's my fault for not having the money in the account to pay for the account in the first place, but is it really neccessary to charge me such a ridiculous ammount of money in bank charges?

I haven't even used the account yet.

 

I haven't paid it yet. I've got till the end of the month before they charge me a further £28. I was wondering if there was anything I could do to avoid paying it, or if there was any way I could reclaim it if I do pay it?

 

Any advice would be really appreciated. Thank you. Laura x

 

I posted this is the "welcome thread" but was posting it again in here. Thanks again for any help.

[ataction]

They certainly know how to charge, and irritate their customers. It is not your fault, it is their unreasonable regime of charges, which you will be able to recover.

I would do the following:-

1.Compile a schedule of charges.

2.Write the prelim letter.

3.Arrange a face to face with your personal banker (in the next day or two)

4. Request full refund, accept nothing less and advise you are familiar with the process of the recovery of charges.

5. If they refuse hand them the letter with the schedule, advise copies going to the line manager, and Stuart Higley at Borehamwood.

6. They should reconsider at this point and refund, if not advise them you will recover the charges plus interest.

7. They may not, and you will have to go through the process, but you will recover your charges eventually.

8. Once you have resolution close the account forthwith

 

Check this site for the Prelim template, and adjust it your personal circumstances.

Hope this helps, and good luck.

[ataction]

That was not me! A gremlin in the system.

[Laura19]

Thank you. So, are you saying I should pay it and then claim it back by following your steps above? Where can I find the prelim letter?

 

Sorry, I really don't have a clue what I'm doing..

 

Thank you though, for your help.

[ataction]

OK, go to the home page on this site read the FAQs and the step by step instructions. Check the templates on the Prelim letters and the LBA. Don't panic, it may seem as if the situation is out of control, but if you have the relevant information, not only will you recover the charges but you will be able to control the process of recovery to your timescale.

If you have the resources and they refuse to refund your charges at this initial stage it may be as well to pay them, and subsequently claim the charges back plus interest. However i would be inclined to tell them you are unable to pay these charges, and the situation will spiral out of control, and then they will have to refund all the charges and the interest.

So my advice is still to set up the initial face to face, and go fully prepared with your letter and schedule of charges, and be quite resolute.

Good luck.

[Spiceskull]

I agree with ataction on this - you have not yet used the account, so therefore any liabilities that have been accumulated are down to the bank themselves.

 

Personally I would not pay the charges - that way you can say, with all honesty, that you have not used the account. Additionally, in not doing so your conduct cannot be deemed acceptance of the account or it's conditions (see my own separate threads for an explanation of "acceptance by conduct")

 

I would follow the steps outlined above - meet the branch manager with a particularised schedule and requst an IMMEDIATE return to zero balance. If they do not play ball then hand over a pre-prepared preliminary letter for requesting a refund. The threat of 'copied' letters may also do the trick.

 

If all fails then there are many people here who will help you through the rest of the process, but my gut feeling is that they will clear the debt speedily...good luck.

[Guest NATTIE]

OK guys shall the expert tell the OP what she should actually do? I think so as she can do something simple and straightforward. She needs to go into the branch and state that she had an avantage gold that she has used no benefits of and that the monthly fee has taken the account overdrawn. The fact that the account has not been used from my reading of the first post should mean a full refund. If you want to be a bit more forceful, which I doubt will be required you can state that if you went to the Ombudsman he would say exactly the same. The branch will say that they need authorisation from their regional refunds team which they have to get because the branch manager can only authorise up to £50 on a refund and clearly they need to refund Unarranged Borrowing Fee that has gone out and waive the one for January and February. Laura, am in a gameshow host type mood, so what is your final answer?

[Laura19]

Thanks again for your advice. I've read the prelim letter and have changed it slightly to match my situation.

 

I asked to have a meeting with the bank manager last week and I was given an appointment with someone who wasn't the manager.

She refunded me the £36 (£12 monthly fee for November, December and January) and told me that the amount outstanding is now £84.

 

I asked if she could take the amount down or cancel the charges and she said "you signed the contract agreeing to pay £12 a month. It's your own fault you went overdrawn." She's right, but it's alot of money! If I want it brought down then I'm to appeal to head office, but she doesn't think it's hopeful.

 

Anyway.. I've written the letter. I'll go down there on my lunch break and speak to the manager. Thanks everyone

 

Laura x

[Guest NATTIE]

Laura, If they do not refund the £84.00 forget prelim becuase you signed something which you did not have the benefit from and to which if the Ombudsman had the case would be refunded. I am sorry for making comments which i realised was unfair in relation to the initial advice. I would like to apologise for what i am about to say but the Branch manager or advisor needs to read what you signed for and they will see that it clearly states in the terms and conditions that all charges will be refunded if it is converted back from an advantage gold. That also means if the account gains charges DIRECTLY as a result of them. Laura, the Prelim Letter is your choice but a simple letter about the situation should resolve it if the manager interprets it a different ways. I was about to call the staff idiots, but that is a bit harsh in my opinion.