Business Account

[Dowie]

Hey, I'm starting a new claim for bank charges on a Limited Comany.

 

I have a copy of bank statements and the bank charges are made up of:

 

14 direct debits @ 40p = £5.60

Cash paid in at branches =£46,540 @ 49p per £100= £228.04

Standing orders 11 @ 40 =£4.40

 

There are a few other charges and the total charge for one month is £401.43.

 

Can these charges also be claimed back? Are they unlawful or just a price you pay for having a business bank account. Please help.

 

Thanks.

[Guest Lueeze]

Surely you are paying for a service with these charges?

 

If so (because it is business account) I would say you cant claim this back, as 40p and 49p/£100 seem much more reasonable fee's

 

If not then yes claim them....

 

Lou x

[Dowie]

Ok im getting slightly confused. I have a personal bank account and i am just waiting for the Halifax to pay up. With regards to my business bank i am just a little unsure as to what is 'unlawful'. If those items, as you say, are a service then surely the referral charges i have been charged each month of £150 are also service charges to increase or decrease my overdraft?

 

Thanks.

[bram stoker]

I agree with Lou here. The charges you state are not unlawful. 40p is not an unreasonable cost to charge the company for the servicing of a direct debit.

 

The argument with referal fees is that we all know it doesn't cost £30 etc to bounce a direct debit. These arguments and others are in the FAQ section of the forum. If you are going as far as court action you must be fully aware of these arguments.

 

Good luck.

[Dowie]

Thanks for answering that question about my first post. The referral charge is my confusion now though. I do agree that the other charges on bankings and direct debits etc is ok and not unlawful but what about the referral fees. I am charged £150 each month for this and dont really know what it is for. The overdraft is not updated that much. As for going to court, i havent even issed my first letter regarding the business accounts as i am not to sure i have a case. The court issue is with my personal bank account and i have read all the faqs and understand them completely. It is the business side i am now researching, so i was just enquiring as to whether 'referral charges' are lawful.

 

Thanks.

[Guest Lueeze]

£150 EVERY month?

 

Most Business users have a annual review and then it costs them a %. Like I say Im surprised you are charged these fee's of 40p ect then another £150 on top of this....

 

What bank are you with? I will look into it for you...

[Dowie]

Thanks for your reply. I'm with Natwest

 

Hope you can help!

[Guest Lueeze]

So ou pay this EVERY month? Just checking?

[Guest Lueeze]

Rates and fees

 

 

Banking method Standard menu tariff Auto free tariff

Payments out:

manual 67p each 75p each

Payments out:

standing order 40p each 0p each

Payments out:

Direct Debits 38p each 0p each

Payments out:

other automated debits 40p each 0p each

Receipt in:

manual/automated 70p/20p each 75p/0p each

Cash in - branch 57p per £100 90p per £100

Cash out - branch 57p per £100 90p per £100

Cash exchange £1.60 per £100 £1.50 per £100

Cheques paid in - branch 28p 30p

Autopay payments 28p each1 0p each1

Night safe deposits £1 each £1 each

Account maintenance charges £5.75 per month £3.50 per month

 

Current Credit Interest Rates* Gross per year AER

Business Current Account 2% 2.02%

Charges are applied monthly calculated on the services you've used. You'll be given around 14 days' notice of amounts to be charged, along with details of our calculations.

 

 

Charges for additional services

Management time, statements, returned cheques and letters about your loans or overdraft no charge

Stopping payment instructions (eg. cheque2) £10

Obtaining a special cheque clearance £15

Credit opened £12 to set up

Duplicate records (eg. copy of statement) £5

Certificates of balance £8 each

Business audit certificates £27.50 ex VAT (free for clubs, societies and charities)

Banker's opinion £8.50

CHAPS £23 (to pay into another UK bank)

£21 (to pay into another NatWest branch)

Obtaining a banker's draft £12 each

Returned items 'outwards' £35 each

Paid referral fee £25 each day an item is referred prior to payment

 

 

 

 

 

Sorry it seems muddled, but i copied this from their website, can you identify which charges you have had?

 

Lou xxx

[Dowie]

Hey, and thanks for your help already

 

Here is a typical months charges (and how its written on the bank statement):

 

The charge is calculated as a per price item as detailed below: £400.32

Plus an account maintenance charge/fixed fee of: £5.75

 

Account charge to be deducted: £406.07

 

Activity Charge

 

BACS Direct Debits 11 @ 0.38 = £4.18

Other automated debits 5 @ 0.40 = £2.00

Standing orders 7 @ 0.40 £2.80

Cheques and other debits 27 @ 0.67 = £18.09

Manual Credits 18 @0.70 = £12.60

Cheques paid in - branches 5 @ 0.28 = £1.40

Cash paid in at branches £37,051 @ 0.57 (per £100) = £211.13

Cash exchanged at branches £8,470 @ £1.60 (per £100) = £135.52

Autopay payments 45 @ 0.28 = 12.60

 

Total Item Charge £400.32

 

That amount is then taken from bank about 14 days after notice. I am then charged a 'referral charge for the month of xxxxx' of £150 every month. THEN I am charged interest on the account of £406.07!!!!!

 

Im not necessarily disputing the charges as discussed previously, but the other items are surely just lining the big wigs pockets?

[Guest Lueeze]

WOW! thats alot of cash! Isnt there a cheaper alternative? Or do you have big borrowing?

 

Ok, The 1st fee's seem legal

 

Claim the 2nd and see what happens.

 

Like i said before most people pay an OD review fee each year and its like 1% or 2% or something. Can you actually call them and ask what this is for?? Its not listed ANYWHERE???

 

Claim it if in doubt, they can then explain what it is cant they!

 

Hope im helping and not hindering...

 

Lou xxx

[Dowie]

You're being a great help. Here is the story.. i am the company accountant of 6 Limited companies. I have started looking through the bank statements, hence the reasons for all my posts today.

 

Basically, 5 of the companies are bars or clubs and the other one is a magazine company. That is the reason for all the transactions. I have skimmed through the bank statements of the other companies and again the normal charges are paid out (d/ds and s/os etc) then they also have referral charges each month. They vary in amounts, two being £80 per month and one being £12 per week. I havent been through the last two companies but im assuming they will be the same. They are all Natwest accounts too.

 

I will get one of the Directors to call the Natwest tomorrow to ask the question as to what the 'referral charge' is for. If he doesnt have any luck then I will just try and get those amounts back. I will also look into the interest charges as to when and what they are for.

 

Im getting soooo confused!! lol

 

The amounts in the accounts for bank charges and interest are just so excessive its unreal!

[Guest Lueeze]

I would say they are excessive, christ they make a fortune from you!

 

Like i said you really should look at changing banks, now I know this is not easy, but i bet theres a few banks out there who would like to have your business and can offer you a better deal.

 

Unless you feel the service is good enough to justify the charges of course....Call them and bloody complain, after all they earn enough from you!

 

Lou xxx

[Dowie]

I have just checked one of the other bank statements online and they also have referral charges of £125 each month as well as the normal bank charges and interest!

[Guest Lueeze]

Right go get em! GRRRR!!!!

 

Like i say you have the upper hand, you pay their wages effectively!

[Dowie]

Thanks!

 

We are currently looking into changing banks, hence the reason for me looking into getting the charges back as it wont matter if they close the account or not.

 

I will let you know tomorrow their reasons for the 'referral charge', if indeed there is one!! lol

[Guest Lueeze]

Yes please do! Cheeky gits! :-x

[Dowie]

Thanks for all your help!

 

I will go get em!! (and tell the Directors i want a cut!)

[andrew1]

Want FREE BANKING? - This is not an advert just a recommendation. Why not join the FSB Federation of Small Business? It costs about £70 a year. You get free 24 hour legal help line on any matter at all. Cover against tax and vat investigations AND as a member of the FSB you get FREE BANKING from the Co-operative bank. No cheque charges, no DD charges nothing. All you pay are £10 per day over the limint charges ( which I am claiming back! ) and any lending you have. But the FSB deal is a damn good deal. http://www.fsb.co.uk you'll never look back!

[Guest Lueeze]

Checked it out and it looks good, thanks for the info Andrew, are you a member?

 

Lou

[Dowie]

Hey Lueeze

 

I spoke to the Directors and they arent sure what the referral charge is for. First they said it was for natwest online banking thingy bob to pay the wages. I told them that it cant be for that as only one company uses it and every company is being charged.

 

OK... Just spoke to a different Director, the referral fee is for going overdrawn. Yes, the companies do go overdrawn but £150 quid charge is way too excessive. He also told me that the interest charges is also for going overdrawn and recently they have been charged up to 29% for this!

 

Thanks for the reply about FSB, i'll have a look into that but i believe that they are already in discussions with another bank.

 

Thanks

[Guest Lueeze]

Blimey just as well you chekced cos thats alot to be taking out of your wages!

 

Good Luck!

 

Lou xx

[Dowie]

Gonna have a few late nights working all this out! lol

 

I'll let you know definite figures when i'm done.

 

Thanks for all your help

[Guest Lueeze]

Poor you! at least you know now!

 

Bet you'll save a mint when you swap!

[andrew1]

Checked it out and it looks good, thanks for the info Andrew, are you a member?

 

Lou

 

 

Yes Lou I am. It's only for Self employed and businesses I have a Limited Company but it's the person who is the member. It also covers family and employees too so it's the best £70 I've ever spent and you don't have to go through a credit check to become a member either! The legal helpline is brilliant. I've spent hours talking to them on some issues and it costs you zilch! I do all my banking online and they have a reasonably good site.

 

I have read on a couple of threads that transfer of DD's & St/Orders etc have been a little shakey from one bank to Co-op but i have never had trouble with them. They are a good bank all be it not the most glamorous when it comes to branches but they get things done and seem a cheerful bunch. I've banked in business since 1980 and have tried most of them, Co-op I like.