Bank Charges: Frozen overdraft claims revealed

  perpetual motion 00:38 11 Feb 2009

IF it doesnt rain it Pours...
This country's gone to the dogs...
Question is the goverment i belive wouldnt back this now as the banks are SO strapped for cash & that would only make things much worse for them..

click here

  Si_L 01:15 11 Feb 2009

Seeing as banks all over the place are being bailed out by the government (ironically by the tax payers, the very people getting these charges) I could see the banks winning this one. Although, as I am one of the 65,000, I really hope they don't.

I know other threads like this have come up, and a lot of people criticise those call the bank charges illegal, I just want to clarify where I stand. I believe its fair for the banks to charge a customer for going over their limit, but there needs to be proportion to it. If a customer goes a pound or two over the limit, and then is hit with a £40 fine, that smacks of greed. Fair enough, charge a small amount to cover costs if need be. Ironically if the charge was only a few pounds then I don't think they would be getting many people trying to reclaim them! I know I wouldn't.

  perpetual motion 11:35 11 Feb 2009

Si_L i i fully agree slapping a £40 charge for been just a mear £1.50 over is terrible service & Yorkshire Bank apply this VERY easly like last year i accidently spent more on shopping for food than i should of done leaving my Broadband £1.47 short but i honestly didn realise & i was hammered with a £35 charge & when i called the call centre up they was as hostile as u can possibly imagine when i asked them to be amicable they also went downt the road of "You signed for the account & our terms & aggreements where in there"..i got no luck which is rather dissgusting cause if it was a £5 fine they really would be no issue but then again Yorkshire bank are part of RBS & you only need to "Google" Yorkshire Bank as "Yorkshire bank review" & youl see EXACTLY what i mean...

  recap 12:02 11 Feb 2009

Some years ago, I was doing my Saturday shopping. When I got to the check out the cashier informed me that my card was rejected. I could'nt believe it as I knew there was close to £1k in my account. I rang Yorkshire Bank only to be informed that as my bills (rent, rates, utility bills etc) were to be paid on the following Monday they had taken these funds out for payment. My wages were also going in to the bank on the same Monday which would keep my account in the black. If they did not do this they said I would have gone in the red, then I would have had to pay bank charges. Why, as far as I was concerned there were enough funds to pay for the shopping on the Saturday

I don't know if this is common practice with banks, but to me it is a rediculous practice.

  Si_L 12:04 11 Feb 2009

When I complained about the charges, I wasn't given the 'You signed up for the account...etc" excuse, rather I was told it was to cover their costs. I asked them how much it costs for a computer to automatically send me an email (I don't get documents through the post), and they went very quiet on the other end of the phone! Subsequently my phone service with my bank was suspended and so now I have to go into my local branch to complain!

  interzone55 16:11 11 Feb 2009

It must be my bank, but I never get stroppy service on the phone, they're always happy to help.

The couple of times I've gone over my agreed over draft the charge has only been £18, and the first time it happened I telephoned and they removed the charge as I was being paid the next day.

Like they say on the Aldi adverts, don't change your lifestyle change your bank.

I use First Direct...

  tullie 16:16 11 Feb 2009

Even £18 is way over the top.

  spuds 16:55 11 Feb 2009

The main problem is when 'only' and 'from' start coming into the calculations. Using those words makes things appear to right and fully legal, especially if its in the process of obtaining excessive charges for doing relatively little.

I have recently had a bit of a barney with a finance house that I use. When you ask for precice crystal clear answers to their methods they use, they appear to have a little boy/girl lost attitude. Its about time the whole of the finance market came under very close independent scrutiny.

  Kevscar1 19:17 11 Feb 2009

I got hit once for a going a few quid over. When I phoned up and was given the rubbish I said OK close the account then. A shocked voice said why are you doing that and I said if you are going to charge me that amout after all the years I have been with you and never having gone over my limit before I will bank elsewhere from now on. That means no more loans with you no house insurance no nothing.
They soon dropped the charge.

  Zaphod 3 19:46 11 Feb 2009

You stated that Yorkshire bank are part of RBS, I'm afraid that you are mistaken. Yorkshire Bank is a trading name of Clydesdale Bank, which in turn is owned by National Australia Bank Group.

click here

  interzone55 09:46 12 Feb 2009

What you've got to remember is that when you got overdrawn without authorisation you have essentially borrowed money without the bank's permission.

Technically you have stolen the money.

The penalties are designed to make you wary of going beyond your authorised overdraft, in much the same way as an excess on an insurance policy was originally designed to stop people making frivolous claims...

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