Bank Charge Letters

Most people have received those famous letters which are 'sure you would wish to know' that a cheque has been returned / Direct Debit cancelled / Standing Order stopped because 'your account has insufficient funds to meet this payment...' -and have been charged anything up to £30 for the privilege.

Some have had such problems with their account that letters like this have arrived several times per week, fanning a small overdraft into a dangerous debt within a very short time.

DON'T be tempted (as most people are) to file these letters until you feel strong enough to open them - in one case the bank became increasingly unhappy that their letters were being ignored and eventually one letter charged £500 to shock a response out of the customer.

DO take one or two sensible precautions.

Write to your bankers and instruct them that you require only ONE such letter to be written if your account goes into overdraft. There is no point in a computer generating a new letter every time a further debit goes through the account - and a further charge to you.

If you do receive the letter, find out what happened. If there is a mistake, get it fixed and (unless the mistake was yours) get a refund of any interest and charges which have been applied. If there was a minor problem, stress any advantage you can - your long connection with your bank, other accounts - and ask the bank to review their charge. You will probably find some sympathy - once.

If there is a problem, sort it out. If you will have to reorganise your borrowing, sort out a proposal and take it to the bank. Discuss matters frankly - within reason - and seek the bank's help in putting matters right.

If at any stage you run into an unhelpful and unreasonable member of staff, DON'T RETALIATE IN KIND. See our comments about being reasonable and professional in pursuing your own interests ('How to Complain', and DataSheets 7 & 8 ). Use the Code of Banking Practice to pursue the matter if appropriate up to the Head Office of your bankers, and to the Banking Ombudsman.



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