Bank charges information needed please

[traceyoneill]

Hi I am enquirying on behalf of someone else, so anwsers only please, no negative comments. A young lady I know has a monthly bank charge going out of her account, it is taken the day before her benifits get paid in, she is then over her overdraft limit and is then charged unauthorised overdraft fees, this is then leaving her with about £130 a month to live on. Can you be charged unauthorised fees if it is a bank charge that has taken you over your limit. We have tried to change the bank charge date but they will not alter it, she is only on a very basic benifit off around £50 a week, thanks

[Cyclone]

I don't see why the fact that it's a bank charge would alter the unauthorised overdraft charge, so yes, you can be charged.

[Mr Bloom]

Simple answer: yes. BUT if your friend can get to see an advisor/debt counsellor then maybe they can assist. I would make CAB my first call, if they exist.

[traceyoneill]

Thanks she is waiting for an appointment, she has spoken to bank but they wont budge, the £70 a month bank charges could come off the £100 overdraft and make a big differance

[LeMaquis]

Change bank. Use the post office or a building society.

[traceyoneill]

I think she has applied for a post office account

[Ghozer]

Go into the bank, tell them that it was their charges that put her over and caused more charges again, most banks will happily refund them..

 

If they don't mention that it's her benefits, and it's actually illegal for them to take that much of her benefit, if they still persist, say you will be going via the Financial Ombudsmen then, who will resolve the query..

 

Then, phone the Financial Ombudsmen and they will get the charges back (I got £60 of charges back from my bank previously)

 

http://www.financial-ombudsman.org.uk/

[Cyclone]

How is it illegal for a bank to take a contractual charge out of a bank account? The source of the money is surely irrelevant.

[Ghozer]

How is it illegal for a bank to take a contractual charge out of a bank account? The source of the money is surely irrelevant.

 

because there is legal limits that companies are allowed to deduct from your benefit, such as when you owe debt, they cannot take more than £3.60/fortnight from you per debtor, up to a maximum of 5 debtors...

 

Any arrangements you make outside this/above this level are up to you and are classed differently...

[Cyclone]

They aren't deducting from benefit and it isn't debt.