New member ready for war with First Direct and Nationwide....

[Bank_Basher]

Hello,

I'm new to all of this and glad to have found a forum to discuss issues relating to bank charges.

 

To cut a long story short, my partner and I have incurred heavy bank charges for years (as far back as I can remember). These charges, as you probably can guess, have been unfair, unsubstantiated and forced us into more debt.

 

Clearly, we are responsible to a large extent for going overdrawn or over borrowing - however that doesnt give the banks license to penalise us and make matters worst. We were with First Direct for 5 years (still are but not as a main account now) and have been with Nationwide for 1 year (as our main account provider). We've incurred £1,400 of charges from First Direct (and that's without adding interest) so I've issued a letter to them requesting this back using the template from the BBC website. They've got another couple of days before I go through the small claims court.

 

After I've done First Direct, I'll target Nationwide....when my parachute account opens next week!

 

I've heard that I should go to the ombudsman first before small claims court - appreciate any thoughts on this!

 

Anyway, thanks for listening and I look forward to reading the numerous threads on this forum.

 

Best

BB

[hedgey06]

Hi BB - welcome on board! Advice on CAG is to go through the process of sending preliminary letter asking for charges back, wait 14 days then send LBA (letter before action), wait 14 days and - if the bank have not responded/refunded your charges - stick to the timetable and file your claim at court and add 8% (s69) interest to your schedule of charges. Haven't seen any advice that says to go to the ombudsman unless you're complaining about retaliation from the banks (e.g., account closed 'cos you're reclaiming charges).

 

It's probably really worthwhile starting your own threads in the Nationwide and first direct forums (at least i think there's one for first direct??!) You'll find loads of support, encouragement and advice from other CAG members going through exactly what you are right now. Good luck with your claims, Hedgey

[Bank_Basher]

Hi hedgey06,

Many thanks for the advice - will give them the LBA and slap on the 8% before going to court.

 

I've just checked my Nationwide account and noticed that they've just slapped on £160 charges for returned direct debits and excess overdraft fees. So looking forward to claiming that back too (along with the £60-100 per month they been charging since Nov '06).

 

Just hope they both dont cancel the loans I have with them!

 

BB

[hedgey06]

Nice one BB........ keep the ball rolling!!!

 

They shouldn't touch your loan accounts - especially if you're up to date with all your payments. If they do try and call them this would be classed as retaliation, so you'd have a valid complaint to the financial ombudsman there.

 

Good luck - Hedgey x

[BankFodder]

The Ombudsman won't deal with complaints which are also being dealt with by the courts.

I expect that this is to save the Ombudsman the embarrassment of arriving at a contrary conclusion to the court.

 

If you go through the Ombudsman it will take you 3 - 4 months and you will get no interest on the money.

Also, your complaint will go silent and you will have no idea of what is happening until the decision is made or else the claim is settled.

 

Go through the courts and it is active, you get interest and you will feel as if you are finally taking charge and bullying the bully.

It will give you confidence to deal with other consumer-related complaints

[Bank_Basher]

Many thanks for the advice Bankfodder.

 

In fact, this morning I received a 'Without Prejudice' letter from First Direct offering a refund just shy of £1,000, £400 less than what we asked for and it included an additional £185 charges they've added this month. If we accept it, we must sign and send it back within 10 working days. The bank's defence of the charges was as follows:

 

'In circumstances where you have authorised a payment that would, if met by us, lead to your account going overdrawn or to exceed an agreed overdraft limit, we have to consider whether to make this payment. A fee is payable for this service provided by the bank, details of which are clearly set out in our published tariff. The circumstances in which the fee will apply are clearly set out in our Account Terms and Conditions, a copy of which was provided to you when you opened your account. We are confident to our position and believe that if your claim for a refund proceeded to Court, we would successfully resist any legal challenge in relation to these fees'

 

But I believe they're bluffing and would normally take up the challenge. However, I need to access that cash quickly before I start other action which may have them reclaim it.

 

BB