Countless times as a in both my first and second year i had been charged between £20 to £30 for going over my overdraft on both my student bank accounts (with Barclays) as well as my credit card, the latter to assist with short term financing. I would argue that £20 to £30 is a good weeks shopping and its absolutely unacceptable to make these charges to student who are already up against it. The ‘Banks’ simply respond with “the charges are noted in the contract you signed when you opened the account”…
The real cost of bank charges:
Surely the cost of an automated system that notes an account has exceed its overdraft and issues a letter cannot cost more than £1.50 so what about the other £28.50?….. that’ll be profit then.
Got you in a corner:
What is frustrating is the difficultly of closing or even transferring your account to another bank. Not only will this involve realigning all of your direct debits and standing orders for bills, rent and university but there is also the chance that you will also have to repay the outstanding overdraft you might have accumulated before you can close the account. This factor of course doesn’t consider the new account provider arranging a balance transfer of the existing overdraft.
Valued Customer:
As much as we perceive ourselves to be “valued” customers its best just to accept that the banks provide a service, and for this service they charge. Their business is about profit, and we are merely ‘cogs in a machine’.
Ok, can I stop being charged:
Prevention is always better than cure so if you always sail close to your overdraft or credit card limit then why not consider setting a £10 buffer so that you don’t get charged. But remember, don’t spend this buffer no matter how skint you get.
Also ensure that you keep a calendar or diary of exactly when any direct debits or standing orders are due so that you have sufficient time to manage your finances and meet your commitments.
So how do I get these charges back?:
Step 1 -
- Call or go into your branch and request a copy of your bank statements for the last 3 years or as far back as you can go.
- Once you have received your statements make a note of every charge you have accrued. Please note that charges do not include interest or commission of purchases abroad – we are merely interested in charges when you exceed your agreed credit limit or a direct debit goes unpaid due to insufficient funds in either you credit or debit account.
Step 2 -
- Call the bank and say something along the lines of: ”I would like to make a complaint regarding the unfair charges on my account totally £xxx, dated (insert dates here). I have been speaking to my uncle who is a lawyer who has advised me to pursue a case at the small claims court if you do not refund all or part of these charges”
- I was eventually awarded £40 of the original £80 that I had been charged in my second year of university, yet have heard numerous stories of banks giving in and refunding money as well as other not given in at all.
The key points to remember are:
- Be Confident: Know exactly what you are going to say, and how you are going to say it.
- Be Calm: Aggressiveness can so easily be seen as a weakness and the bank can easily terminate the call if you are being rude
- Don’t Swear: As above, but remember that the guy at the call centre doesn’t make the rules he/she only work by them.
- Cross Reference: Talk about other banks and the great service they provide, or that you will transfer your account to another bank if the charges are not abolished. You might even lie, saying that you ‘ were’ planning on getting a mortgage.
- Stand Your Ground: You are the customer, they provide the service – remind them of that.
- See You In Court: Don’t end the phone call until you have spoken to their supervisors, got the head office address and taken as many names as possible. Always argue that the easiest thing to do is to refund the charges and the problem will go away.
Getting nowhere?
Tried all that lot but they still aren’t budging? reel off the following:
“Surely you dont want a small claims court hanging over yourself, which I am sure you will not turn up for again so you will not only be liable for the repayment of the unfair charged to my account but also for the legal fees. Lets keep this simple – You agree to refund all or part of the charges made to my account and we can draw a line under this matter, and I will agree not to pursue this matter in court or contest future charges”
Still Getting Nowhere?
Perhaps the banks have found this feature! Don’t worry – all is not lost. Send then a letter detailing your complaint along with the dates that your account was charged and demand an explanation.
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