Bank Charges took son into the red

[Doc2527]

Hi Folks

My son's dormant bank account has added £20 plus interest on his account each month. It is now sitting at over £180 due to the "snowballing" of these charges.

Can someone offer some advice on this?

He went overdrawn, and therefore had an unauthorised overdraft.

Many thanks

Doc

[Amethyst]

Re: Bank Charges took son into the red

Where was the bank account held ?

Some banks have T&C's that a certain amount is paid in each month else they apply charges, so it would help to have a better idea what the account was and what the charges were to see what action he can take to try get these charges reversed.

[Doc2527]

Re: Bank Charges took son into the red

Hi

His account was an ordinary current account with a debit card, I'll need to check with him if there was a need to have a certain amount of money going into the acount.

many thanks

doc

[Doc2527]

Re: Bank Charges took son into the red

Checked with him last night and he assures me that it was/is just and ordinary current account with a debit card....no stipulation to have a certain amount in the account.

The charges where £20 per calendar month added to his unauthorised overdraft of £50 plus interest charges.

Any help would be much appreciated.

Thanks

Doc2527:tinysmile_grin_t:

[Caspar]

Re: Bank Charges took son into the red

Sounds a silly question, but was the overdraft caused by genuine financial difficulties in the first place If so, were there signs that the difficult financial situation was coming on?

[Doc2527]

Re: Bank Charges took son into the red

He has since made a complaint to his bank,as part of his complaint he had requested that they provide him with all data held on him via an SAR claim.

They have replied "We have discovered that you made a debit card transaction in December 2010 which was guaranteed despite there being insufficient funds in your account.Consequently, you have incurred a £15 paid item charge and a £20 account maintenance charge. All subsequent debits have been incurred due to a failure to address this overdrawn account balance. Each month since then you have incurred £20 maintenance charges and debit interest fees".

This smacks of unfair profiteering, as it was an account that he no longer used, however he was only contacted in September 2011 of the "snowballed" charges.

He was not having any financial difficulties at that time.

The bank have come back to him with an offer "On this occasion , as a gesture of goodwill, I would like to offer you a refund of £137, which amounts to 50% of your current overdrawn balance."

Charges have been added to the account since this offer and since his letter of complaint, which referenced the CCA , in that whilst an account is in dispute, that charges added to his A/C during this time are unlawful and vexatious.


Any advice on this matter would be appreciated.

[postggj]

Re: Bank Charges took son into the red

how was this a guaranteed transaction, the bank knows how much is in the account and should decline the transaction

second question

is the debit card electron, maestro, or a full debit card

[Doc2527]

Re: Bank Charges took son into the red

it was a full debit card.....he no longer uses the account....since 20th December 2010.

[CleverClogs]

Re: Bank Charges took son into the red

Quite apart from their egregious violation of their own Lenders' Code - which is less use than a chocolate teapot - there is the level of charges imposed.

I believe I'd want to put those buggers to strict proof that it does cost £20 (or £16.66 + VAT) to maintain the account. I doubt that it really costs them more than a pound in terms of computing time and administrative services.

[labman]

Re: Bank Charges took son into the red

If the situation has now put him in financial hardship have a look at Section Nine of the Lending Code. That would give him plenty of ammunition to reclaim charges.

[Doc2527]

Re: Bank Charges took son into the red

My son is in full time education, how would I let the bank know this....through a hardship claim?
:tinysmile_aha_t:

[CleverClogs]

Re: Bank Charges took son into the red

How old is your son?

[labman]

Re: Bank Charges took son into the red

My son is in full time education, how would I let the bank know this....through a hardship claim?
:tinysmile_aha_t:

Normally one would go to one of the FREE debt advice centres such as CCCS or Payplan and complete a Common Financial Statement which covers your assets, income and expenditure. This then reveals your disposable income, if any, and thus your ability to repay your debts.

[Doc2527]

Re: Bank Charges took son into the red

My son is 21yrs old

[leclerc]

Re: Bank Charges took son into the red

The card transaction may have fallen within a shop's floor limits so it would not be declined. The Maintenance charge was formally called unarranged borrowing.
Did your son make the transaction?
Why did he not rectify the situation immediately?
What kind of account does he have? If he is in full time education why has he not got a student account with the bank?
If we are looking at financial hardship, the hardship forum may already have the bank's income and expenditure form in there but I don't know because I do not know which bank that is being dealt with.