Though it appears that they set it out in their terms and conditions that they can do this, is it actually legal? I mean they state in their terms and conditions that they can charge us 30 quid; and thats what all this is about. Banks just take advantage of grey areas of the law and hope us, the ocnsumer, don't challenge them. Like I said before, surely if the two accounts represent two seperate contractual agreements they can't be made into one lump sum as in implied by your quotation - especially not without the consent or atleast notification of the customer. Then again I am no lawyer. But anyone who is a lawyer...please comment!

Thanks mate Have just posted it in the Nationwide section

Hi Tot, I've had many classic dealings with the nationwide over the past year and have claimed back 3 seperate time. First for £240, then for £30, and then as recently as 2 weeks ago I claimed another £30. The trick is not to back down. Bank charges are irrecoverable at contract law. They do not reflect the true costs incurred by the bank when you got overdrawn and are extortionate beyond belief. If you need any of the legal facts to back up your next letter just check the Libraries on this site. Its full of great links and information. I love that in the letter they state: "I would like to explain the rationale behind our charging policy" They clearly go on just to crank out the same old "terms and condition, terms and conditions" like they always do. The fact is their terms and conditions are illegal and the law is on YOUR side. Why else do you think that banks are yet to actually turn up for court? They havent closed my account, and I'm sure even if they did you would probably find that it is very dodge if they do close your account on the grounds of THEM breaking the law and you getting back what it rightfully yours. But still, even if they did close your account would it be a loss? In my experience Nationwide are not only rude and lack manners, but their customer service is a joke. It would be no great loss if you moved on. And you having your account closed by them should in no way effect you opening up a new account anywhere else. Good luck Tot and don't give up. You're right and they're wrong

Whilst trying to claim back recent charges I have delved into reading up on contract law on the internet. One thing I found interesting was that if you are a minor (ie under 18 then you cannot be held responsible at contract law and held to terms of conditions of a contract. Funnily enough when i put this is my letter to the Nationwide a few months back I was promptly returned my £300 of charges that going £5 overdrawn had spiraled me into. However I do not know the actual law on this. Can I get out of these terms and conditions on this ground, as well as the gorunds the are misrepresenative charges? I know for example that some banks do not actually impose penalty charges for those under 18. Perhaps this is coincidence, or maybe its because they realise this is unlawful to charge someone who is not 18 and cannot be held legally binding to terms and conditions of a contract. My argument to the Nationwide was this: You claim that these penalty charges are due to costs incurred by yourselves due to the mismanagement of my account. ie I have £20 in my account, and then a £30 direct debit comes out putting me in an overdraft of £-10. However since I am not 18 I legally cannot have an overdraft, and so therefore what happens to a customer aged under the age of 18 is the following: I have £20 in my account, and then a £30 direct debit comes out putting me in an overdraft of £-10, and then automatically there is a 'Bank Correction' and the £30 is recredited to my account and the direct debit fails. Now, since I have only theoretically exceeded my overdraft limit, what actual costs have been incurred by the Nationwide? I am not in debt to them, and have borrowed no money. So there is actually no way they can get close to justifing a £30 charge. The above scenario was what was repeatidly happening to me time and time again. Funny thing is though that when I had £20 in my account and a £30 BANK CHARGE came out, guess what happened? That's right. The Nationwide had no problem whatsoever with me staying in the red despite my age.

Hi all, I have been a busy body in my home town this last year and I'm sitting very smug to finally see that the banks are on the back foot. After I was succesful in claiming back charges with the Nationwide I informed everyone I knew that should they have a problem just to give me a ring. The other day a someone gave me the following issue: She incurred a bank charge on her current account, and recieved a letter informing her that they would be taking £30 from her joint savings account which she shares with her grandad. Now I don't know how you feel, but to me this kind of behaviour is simply shocking. My question though is that is this kind of practice legal? The charge as we all know is not, and I have advised her to claim back it back. But taking money out of a seperate account due to a charge in a different one, especially when its a joint account and her grandad was given no notification....that just doesn't sound at all legal. Surely the two accounts are formed from two seperate contracts meaning they could not overlap? Furthermore she claims that they did not even give her 28 days notice. Isn't this breaking thier own terms and conditions which they always seem to refer to?! Any thoughts or answers to this would be greatly appreciated. Many thanks

Hi all, I have been a busy body in my home town this last year and I'm sitting very smug to finally see that the banks are on the back foot. After I was succesful in claiming back charges with the Nationwide I informed everyone I knew that should they have a problem just to give me a ring. The other day a someone gave me the following issue: She incurred a bank charge on her current account, and recieved a letter informing her that they would be taking £30 from her joint savings account which she shares with her grandad. Now I don't know how you feel, but to me this kind of behaviour is simply shocking. My question though is that is this kind of practice legal? The charge as we all know is not, and I have advised her to claim back it back. But taking money out of a seperate account due to a charge in a different one, especially when its a joint account and her grandad was given no notification....that just doesn't sound at all legal. Surely the two accounts are formed from two seperate contracts meaning they could not overlap? Furthermore she claims that they did not even give her 28 days notice. Isn't this breaking thier own terms and conditions which they always seem to refer to?! Any thoughts or answers to this would be greatly appreciated. Many thanks

Don't lose heart. I've read enough of these to see that sometimes they will just plain lie to you until the actual court date arrives on their desk. Maybe you should try exploring the legal side of things more and have concrete facts in your next letter. For example: On a separate note, your charges appear to represent an unfair term of contract which is contrary to the Unfair Terms in Consumer Contracts Regulations 1999 (SI. 1999/2083). My account falls within the ambit of Regulation 5 of the Unfair Terms in Consumer Contracts Regulations 1999 as I am a consumer. Your charges constitute an unfair penalty under reference to paragraph 1(e) of schedule 2 of the said regulations: ‘Indicative and non-exhaustive list of terms which may be regarded as unfair - 1. Terms which have the object of effect of - (e) requiring any consumer who fails his obligation to pay a disproportionately high sum in compensation’. OR I am of the view that your charges represent a penalty and are therefore irrecoverable at common law. In the Scottish case of Castaneda and Others v. Clydebank Engineering and Shipbuilding Co., Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract. This is also the position in English law: Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79. If you attack them with statements to which there is no arguing its bound to have an impact. Equally though expect them to try and bluff you all the way to court room. Think of how many people give up after they get a letter back telling them they're wrong. The banks know this, and is just another example of how those that run the banks are dishonest cheats. It'd also be good to look into what the banks reply to all of this is. The most interesting I have found is the statement given by UK banks when asked to give evidence to the House of Commons Treasury Committee on how banks calculate bank charges. This was on the 25th of January 2005, and it shows the banks actually admitting that the charges applied to your account are not a reasonable pre-estimate of the bank’s loss in relation to your account - they are part of a scheme to recover global losses. Anyway, I hope some of that can help, and don't give up! Maverick

Thanks very much mate, I hope I'll soon be in a position like you - a position where I don't fear those extra fat statements from Nationwide telling me I'm being fined again!

Hey, Only just joined today and I have spent most of my afternoon and evening researching and reading threads. Just like to say thanks to everyone on this site and that I fully intend to donate atleast the recommended 5%, and most likely more I have all my statememts online so I have had not to send off for them, and I have used the spread sheet on google as recommended but I am an unsure exactly what to do with the interest and indeed what exactly it means. Im a FlexAccount holder and I have no overdraft limit as such as I am 17, though this has not stopped the bank from fining me of my money. Since I had an accident in May (2006) resulting in being unable to walk without the aid of crutches, I have been encountering many problems financially as I can no longer work. Initially this was as my sick pay took some time to sort out and I still had bills to pay, and no money coming in. To I have paid about £250 in bank charges. So my questions are: Can I still apply to get interest on top of this sum, or this only something applicable if you have an actual overdraft limit? What is the difference between contractual and compounded interest and do either apply to me? If I can claim interest what spreadsheet on google is best for me? And finally, on the spreadsheet what should I put down as the 'Claim Date' ? Is this the date which I am writing up the data, or the date which I may end up applying to take legal action? I thank anyone who replies to this, and again congratulate the people that run this site in their efforts to make sure honest people get what is rightfully theres. I hope that when I resolve my issue I can help the countless number of people that will fall into my position. Thanks, Maverick

I don't know this for sure mate, but from what I've been reading and researching they can, or atleast they notify that they will be closing it. But as far as I can tell this only happens AFTER the claim is completed, and as far as I can can guess they would probably have to give you a grace period of atleast a week or two so that you can sort out your affairs. I'm not a lawyer, but personally my readings of banks acting like this has only confirmed common belief about their character and intentions - as soon as they don't get their way and get hands on your money through unlawful means they don't value your custom anymore, - and I'm sure there must be legal issues involving them closing your account without proper, or 'moral' grounds. Anyway mate, hope that helps and good luck

How long from when you sent the letter until when they paid? Well done though that's fantastic news

Hey, just wondering if you'd heard anything back yet? I too am claiming a relatively small amount, or am about to, and was just wondering how you were finding it. Many Thanks

Hey, I too have a flex account with nationwide, and I was just wondering what happened when they said they were closing your account and how quickly it all happened. I mean, did they give you a time limit to sort out all of your direct debits etc? Also, having changed your bank account, have you got any recommendations about which bank offers the best policy?