| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 3:09:57 AM | I thought this story I read might be an interesting topic to discuss..........
And with many students also being regular posters on the forum also.
A STUDENT has been hit with a £48 bank charge for slipping into her overdraft – by A PENNY.
Cash-strapped Julia Turner thought she had £5 left in her bank account when she bought a T-shirt but in fact was only £4.99 credit.
Going over her limit by that single penny triggered the astonishing wave of charges.
The Bank of Scotland fined her a £20 administrative fee for going over her limit plus a further £28 “unauthorised overdraft fee.”
“Shocked”
The 19-year-old is trying to save money for her fashion course in Glasgow, which she starts in September – and the charges have hit her hard.
She said: “I thought I had a fiver left on my card so I was shocked to receive the letter.
“I would have paid the 1p in cash if I had any idea I’d gone over.
“I thought if I ever went over my overdraft my card would be rejected, so I think it’s a bit sneaky and misleading that they’d let me spend money and then charge a fortune.
“I am putting every penny towards my college fund so it seems a shame to pay such an unnecessary sum.
“I read that being overdrawn only costs the bank about £2.50 to fix.”
Disgusting
Julia’s father, Douglas, is equally angry saying that the banks attitude is disgusting.
He said: “I remember a time when banks actually cared about their customers. This practice might be legal but it’s not right.”
Bank charges have been a hot topic in recent years, with an ongoing argument between eight high street banks and the Office of Fair Trading.
The question of whether or not people can claim back their bank charges has reached the courts and although the OFT won the right to investigate overdraft charges, the House of Lords granted permission for the banks to appeal the decision.
Proportionate
Consumer Focus Scotland said that bank charges should reflect the circumstances of each case.
Their spokesman said: “Bank charges should be proportionate rather than punitive.
“While consumers have responsibilities as well as rights, and banks have to protect the interests of their customers who never go overdrawn, bank charges should reflect the reasonable costs incurred by the banks.
“Banks also need to consider the cost of cases like this one to their reputations and to the level of satisfaction of their customers.”
Yesterday the Bank of Scotland said they are looking Julia’s case.
Do you agree with the students father that the banks attitude is disgusting?
Shouldnt bank charges reflect the circumstances of each individuals case?
Or were they in there right to fine this student even if she was only overdrawn by a penny? | |
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sjxx
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Joined: 4/9/2009
Msg: 3 | |
| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 3:26:58 AM | Banks. One of my pet hates. Until i got my current job i lived on my huge overdraft and was never in the black. Quite often they took several hundred pounds in charges for going over my agreed limit by no more than a tenner. They had on qualms taking this money but now seem very reluctant to pay me back the £3389.12 in charges that the courts have decided are unlawful. Bankers does not rhyme with wankers for nothing  | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 3:29:14 AM | I might not agree with it but they make you aware of the charges when you take the account, she could have agreed an authorised overdraft limit and this wouldn't have happened. In some cases if you phone the bank they may waive the fee.
An expensive T shirt. As for her saying if she went over her card should have been rejected, some transactions take time to come off so it may show that you have more money than you have available.
As for saving for her college account, she could have another account sitting elsewhere full of savings but that hasn't done her much good in this instance has it? | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 3:31:22 AM | im with barclays i dont have an overdraft arrangement but they dont charge me unless its over my £50 or more
i hate banks anyway 3/5/7 days to clear a cheque that clears instantly makes me amazed a bank can need rescuing when theyre sitting on that kind of moneys interests for days at a time | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 3:55:42 AM | When I was a student, many many years ago in the early 80's, my bank wrote to me informing me that I was very close to my overdraft limit, in fact I had only £4.80 of my official overdraft limit left. I had never been even close to my overdraft limit before and had for most of the time been well in credit, as I was a DJ earning loads of money, sometimes even £60 a night.
It was signed by the Bank Manager, a Mr D G Fiddler, well pp'ed as he obviously was far too busy to even sign it.
I was then informed that I would be charged £5 for the letter taking me over my overdraft limit, and therefore would be charged £28 administration fee and £20 “unauthorised overdraft fee”. The charges don't seem to have changed in an awful long time, however I reckon the banks can administer about 1,000 fees an hour, which means they are making a profit for bugger all work of £28,000 an hour.
Anyway, I digress, back to my story.
I was working as a DJ when I was a student, as I mentioned before, so I had hundreds of pound notes stuffed under my pillow, and as such was probably the only student who very rarely went overdrawn. I simply went in the next day and payed in about £195.20 in cash, which cleared my overdraft, a letter closing my account, and a letter for the Bank Manager. It simply said "Fück off Fiddler".
Strangely enough I got a polite letter back offering me a £25 gift voucher if I decided to stay with the bank as I was a valued customer. They didn't charge me for that letter.
Needless to say I had already opened a new account with the bank next door. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 4:58:50 AM | My, how banking has changed in 50 years!
When I was a lad back in UK..my first employer was a bank, my duties as a statement clerks was to post, by hand in pen and ink into the Accounts ledger all the cheques that passed through on a daily basis.
If an account was likely to be overdrawn, or even made low in funds, I had to draw it to the attention of my senior, the Chief Cashier, who would immediately either call the customer..providing they were on the phone ( yes people..back then not everyone had a phone)..or send a letter advising them that if sufficient funds were not deposited within 24 hours..( again..the GPO delivered most mail sent today by the noon time delivery next day, so it was not even considered that they would fail to get the letter) the bank would regretfully be bound to return the aforesaid cheque causing the customer the embarrassment of an NSF cheque plus charges.
Having been in the situation of the poor student not so long ago myself..the electric company decided to change their billing date without notifying clients, and as I relied upon my pension cheque to be deposited to cover the automatic payment set up, the bill hit the bank with a shortfall in the account...bounced and cost me the same double whammy as the student.
Give them their due..they did hold on to it and post it when the pension arrived and cleared it through, otherwise I would have incurred even more charges..the electric company would have been hit for a returned cheque charge of about the same amount.., my credit record would have been lowered, and I would also have been hit with interest charges on top of that ...roughly double those I had already incurred 100$ for being 5$ short!
I questioned this, of course, citing the fact I have been with the branch for almost 20 years, and pointing out how things used to be with a customer, and received the long winded explanation fo how computers do the work at head office levels, and the instant it sees red ink, no matter how much or how little..charges are automatically entered.
I bit the bullet, but learned my lesson as no doubt the young lady has done...keep sufficient funds in the account to cover any unexpected events like that happening again!
However..when I stopped to think of this...and looked at ALL the charges they lay on a customer today..what a cheek they have! it is YOUR money in there...and they charge you for the privilege of taking it out in any way, shape or form. You pay a 'service fee'..for what service I am not sure of any more certainly not the service you used to enjoy..each transaction costs you, whether over the counter or through an ATM, or a cheque through your account.
Considering the number of these per month per person...just HOW did they end up needing to be bailed out? And how come these bail outs are in effect 'grants' as there seems to be no interest mentioned, nor any late fees if they don't pay back in the specified period of time..in fact, I haven't seen any mention of a due date repayment date either?
In any other business, a failure on the part of management to handle a company's finances properly, would result in the company either going to the wall and closing the doors, or finding finances in a hurry to tide them over, and a complete replacement of those in charge as a result...certainly they wouldn't remain in place and have the outright gall to demand they be paid their 'performance' bonuses before leaving..AND severance packages when they do!
At one time a Bank could be relied upon for advice in handling your finances..a place you could trust. Considering their performances over the past decade, I certainly wouldn't put any trust in any advice they would give me now...in fact I don't even trust them enough to have one account anymore..I have taken steps to spread my risk factor by having small amounts in several different ones!
Poshrat | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 5:07:00 AM | It was signed by the Bank Manager, a Mr D G Fiddler
Was his surname for real or did you just make it up CWC?........
What with our MP's and their expenses scandal he could have a had a great career in politics also!
PS....excellent posts on this thread so far especially the last ones Msgs 7 and 8. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 6:07:52 AM | I've had similar problems over the years. When I first started work I went overdrawn by £25, with the letter it came to £50. Nothing I could do about it other than scrounge some money off my mum to get me through to payday. Not enough for the bank, they sent the heavies round to collect all my cards and also charged me for the priviledge. I was then £80 quid overdrawn.
My fiancee bailed me out, went to see the bank manager and wrote a cheque, "To whom do I make it payable? Bank of Toytown?"
Everybody fcuks up now and again, the bank charges should be reasonable and in line with the amount overdrawn or whatever. I've been with my bank now for over twenty years. On the occasion that I balls up and they hit me with charges I generally ring them up and discuss it with them. As long as I don't do it more than once a year, the charges are reimbursed.
Banks are actually a service industry, they would do well to remember it! | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 6:58:13 AM | | if my bank charges me for anything then i charge them for the phone call/letter or visit they thought it was a joke at first then i said if they did not pay up i would shut the account and that i wanted all my money out there and then they tried to delay paying by saying they had to order the cash from somewhere else and they needed my idea for withdrawing over £500 i went home and got my id went back to the bank and they then cancelled the charges. they never did pay my charges though they said they were too much. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 8:20:45 AM | If you get an unjustified or excessive bank charge. crap in a bag and send it annonymously to the person on the bottom of the letter or the CEO.
I have a Business Degree and have worked in Market Research for years. I can assure you that this is a very legitimate method of expressing your opinion on their customer service.
Beats the sad face on those questionnaires they ignore. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 8:37:19 AM | The best prank my bank played on me recently....
They decided to refuse my broadband because it would have put me 97p overdrawn......
So they hit me with 38 quid in charges, for declining the transfer, which put me overdrawn, then they hit me with another 38 quid for being overdrawn..
Banks are great | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 9:32:34 AM | My 19-year-old son is a student who went a few pounds (less than £10) overdrawn and within six days was hammered with charges amounting to £240.
I went with him to the bank and told the first interviewer that I was a journalist and would run the details through the papers. When I produced my notebook and asked her name for the article, she refused and went off to fetch the manageress. To her, I pointed out that my son had made a mistake, not realising that he would be overdrawn, that he was prepared to cover the cost to the bank (£5 is generous), that the bank is entitled to charge a reasonable fee but is not entitled to fine a customer.
(Under the 1689 Bill of Rights, only magistrates and judges can impose fines.)
The manageress offered to reduce the amount to £120, but I maintained that that figure was too high. She then claimed that she did not have the authority to cancel the charges.
I understand from my son that the charges have been cancelled and he has learned his lesson not to go overdrawn.
A good contact is Margaret Stone of the Dail Mail, who takes up cases of unfair treatment by the banks and building societies. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 11:29:27 AM | | I DONT THINK IT SHOULD MAKE A DIFFERENCE IF YOUR A STUDENT OR NOT , OR AS SAID ABOVE ARE 1 PENNY OR 50 GRAND , RULES ARE RULES.... IF YOU GO OVER ITS CLEARLY JUST BAD ADMINISTRATION ON YOUR OWN PART AND ALL I CAN SAY IS HA HA .. BETTER THE OTHER DUDE THAN ME :D | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/25/2009 11:39:07 AM | | I didn't read any bank "reaction" in that story. Whenever I've been "fined", I've simply called the bank, told them they're silly and I've had the charge refunded. If you often go over your limit, they are more likely to take a dim view and not refund the charge. Some guy at work claimed back over £4,000 in bank charges (before the case went to court and payouts were frozen). It just makes me wonder how crap you have to be with money to rack up that much. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/26/2009 2:27:25 PM | | even if you go in the bank to put money in on the day, it can incur a charge i got caught out a debit came out just after midnight i paid in that morning, i would have thought funds would have to be in by close of business banks move the goalposts to suit themselves | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/27/2009 12:54:21 AM | | The banks have now admitted that the amount that they charge for an overdraft is 'significantly higher than the actual cost to the bank'....we now have to wait for the House of lords to decide whether the charges are fair or not...if not then all the claims currently on hold may be paid but if they decide in the banks favour nothing will change!! | |
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Pud78
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Joined: 4/23/2009
Msg: 18 | |
| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/27/2009 2:31:54 AM | | Banks are outrageous in that they charge a fortune for going overdrawn and rarely use common sense however they are honest about those charges and they set them out when you take out the account and why should they not penalise people for taking money without permission? The bank would without doubt refund the money on this occasion as it is a penny but it makes a good tabloid story. | |
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| Student fined £48 by bank for being a penny overdrawn!
Posted: 6/27/2009 6:16:32 AM | i got bank charges refunded about 3 years ago.
i had been with the halifax for 13 years and had never ever gone over my limit before, but i had sold my house and was waiting for £36,000 to be deposited upon completion...a matter of a couple of days...
in he previous 3 days i had been out buying bits and bobs for the new house and had inadvertently gone over my limit....in 3 days i accumulated over £300 in charges....i was firstly gobsmacked, then absolutely furious.. i went in to see them and explain the situation and they offered to refund me half, which i refused and went to the ombudsman...gave them all the details of my case and within a few weeks i had the full amount refunded...
at the beginning of this year i also fell into a bit of a financial crisis...i did everything i could by going to the bank explaining that i was again waiting for a compensation payout...but they weren't in the slightest bit interested...
a couple of days later i paid in the money, cleared my overdraft and my credit card in full and promised that i would be taking my business elsewhere...
i never did in t he end though as the hassle of changing everything over was more trouble than it was worth and i think all banks are equally as bad... | |
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