£110 overdraft setup fee

[Meteor58]

Afternoon all,

 

Has anyone challenged NatWest about their overdraft setup fees? I was charged this on a business account recently.

 

Meteor58

[zootscoot]

Unfortunately this is a fee for a service which is not related to a breach of contract and therefore not recoverable.

[Meteor58]

Hi zootscoot

 

Yes, I understand that, I'm complaining about the level it is set at relative to the work involved.

 

Here's the letter I'm sending...

 

Dear Sir,

 

Account No. xxxxxxxx

 

I recently took up your offer of an overdraft facility on the above account.

 

Please would explain how the arrangement fee of £110 is arrived at.

 

I ask because I find it a very high figure for the amount of work actually needed to process such a transaction.

 

Being in business myself, I understand the need to be clear what I am charging and what for. If my customers feel I am charging too much they will challenge me and I will offer an explanation. If at any time I cannot explain to their satisfaction, I may loose their order. If I behave with the attitude that I will charge what I like because I can, I will loose them forever and they will tell other customers how arrogant I am.

 

As you’ve probably guessed, I am thinking the bank’s £110 fee falls into the latter category, as that is the kind of money I would expect to pay a senior lawyer for an hours work, not to a highly computerised bank system for a few minutes mouse clicking.

 

I await your explanation with anticipation.

 

Yours faithfully

 

Meteor58

[Guest NATTIE]

In this day and age we have choice so if you hate the service find one cheaper(probably response in round about way). It is a service and cannot be claimed, do some research into what other banks charge and you may find it similar across the board. You can write but you asked for the overdraft and a charge is made on a business account to have one.