Query about legality of overdraft charges

[lethal29]

Morning everyone and a Happy Good Friday to you all.

 

I have a question or two about my Overdraft with the evil blighters at Lloyds TSB, that perhaps someone could clear up for me.

 

I have gone through the preliminary letter writing and requesting statements etc, and received a letter a few months ago stating they were waiting for the court case etc...so obviously not able to proceed on that front immediately.

 

First problem is that I've moved house since and lost my records of the request. Am I able to start from scratch again and put in a new request for my statements and outline of the charges etc?

 

They have started whacking me with the big ol' daily fees for exceeding my overdraft limit again after a mistake on my part, so I would like to add these onto my original claim. Which brings me to my second question.

 

Is it legal for them to charge me for exceeding my overdraft, when their charges have put me over my limit in the first place?

 

If anyone can shed any light on these, I'd really appreciate it!

 

Cheers all.

[Goldlady]

Hi, I presume your original letter will be on file at their end so you couldn't really start again. It would be a clever trick to get a copy of it back from them under some pretext - I did that with BT when my computer had crashed and I had lost a very important email relevant to a claim I have against them - and they did send me a copy to try and prove a point for themselves:D

 

I think it would be sensible to change banks if they are stitching you up this much. All of those charges you mention are reclaimable and you are not alone in being overdrawn purely because of charges. However if you move your account you are then in a stronger position to fight them. We have a LTSB account which is no longer used with 2k of charges - it is 1k overdrawn at present. Every time they hassle me for their 1k I hassle them right back for my 1k. Stalemate!

 

I wonder if you SAR them now whether you will get back a copy of your original claim letter as they should have it on file, then at least you will know how much more you now need to claim.

 

Best of luck

[lethal29]

Hi, I presume your original letter will be on file at their end so you couldn't really start again. It would be a clever trick to get a copy of it back from them under some pretext - I did that with BT when my computer had crashed and I had lost a very important email relevant to a claim I have against them - and they did send me a copy to try and prove a point for themselves:D

 

I think it would be sensible to change banks if they are stitching you up this much. All of those charges you mention are reclaimable and you are not alone in being overdrawn purely because of charges. However if you move your account you are then in a stronger position to fight them. We have a LTSB account which is no longer used with 2k of charges - it is 1k overdrawn at present. Every time they hassle me for their 1k I hassle them right back for my 1k. Stalemate!

 

I wonder if you S.A.R - (Subject Access Request) them now whether you will get back a copy of your original claim letter as they should have it on file, then at least you will know how much more you now need to claim.

 

Best of luck

 

Thanks for the advice Goldlady...I already have an account with HSBC which I reclaimed on, and they've been sweet as ever since then...I'm going to call up Lloyds tonight and change all my DD's out of that account...the only concern is that my Lloyds Loan is paid out of there, so I'll have to check to make sure they allow me to do that.

 

Of course, they'll definitely let the repayment go through even though I'm £100 over my OD limit, because it's their money!

 

What I'd really like to know, is whether or not it's actually illegal to charge me fees for going over the limit, when it's their fees that put me over the limit in the first place....I'm sure I remember reading that a while ago.

 

I'll do the SAR this week too and see what comes of it all....thanks again.

[Goldlady]

You can move your loan payment to the HSBC account as well - there is nothing cast in stone to say it has to be paid out of your LTSB account as long as it is paid. So cancel that DD as well. Best of luck..

[chrishoyle]

What I'd really like to know, is whether or not it's actually illegal to charge me fees for going over the limit, when it's their fees that put me over the limit in the first place....I'm sure I remember reading that a while ago.

 

All overdraft charges are illegal under common law, the test case decision we are waiting for is deciding whether the current charges described under the current T&Cs are legal under the UTTCR.

 

Chris

[nicsussex]

All overdraft charges are illegal under common law,

 

Small correction - they are unlawful not illegal

[blahblah1]

I was with LTSB and because of a mistimed cheque I was charged over £100 in fees which made me miss a mortgage payment and I ended up in court threatened with eviction by my mortgage company!

 

I had the same response when I wrote to them that they are waiting for the out come of the case, but they are still sending threatening letters because the longer I am overdrawn the more they charge me. I moved to NatWest and have been using them since.

 

Should I write to LTSB and tell them why I'm not paying the overdraft? I have been ignoring them but I doubt this is the best course of action?

 

(sorry if I'm hijacking the thread but similer kinda problem)

[Jay...]

What I'd really like to know, is whether or not it's actually illegal to charge me fees for going over the limit, when it's their fees that put me over the limit in the first place....I'm sure I remember reading that a while ago.

 

All overdraft charges are illegal under common law, the test case decision we are waiting for is deciding whether the current charges described under the current T&Cs are legal under the UTTCR.

 

Chris

 

Chris, Lloyds TSB will not charge you for going overdrawn if their charges put you further overdrawn, you will, however, incurr charges when your overdraft interest or (AVA) Account charge is paid on either the 1st or the 9th of the month.

 

as for your original claim, providing you have changed your address with the bank, they will write to you once the court case is over.

 

Jay

[Jay...]

I was with LTSB and because of a mistimed cheque I was charged over £100 in fees which made me miss a mortgage payment and I ended up in court threatened with eviction by my mortgage company!

 

I had the same response when I wrote to them that they are waiting for the out come of the case, but they are still sending threatening letters because the longer I am overdrawn the more they charge me. I moved to NatWest and have been using them since.

 

Should I write to LTSB and tell them why I'm not paying the overdraft? I have been ignoring them but I doubt this is the best course of action?

 

(sorry if I'm hijacking the thread but similer kinda problem)

 

Either way, you will end up paying the overdraft. If the bank cannot get payment from you, they will pass your account the their solicitors who will contact you for payment.

[rory32]

What I'd really like to know, is whether or not it's actually illegal to charge me fees for going over the limit, when it's their fees that put me over the limit in the first place....I'm sure I remember reading that a while ago.

 

The charges are not illegal (illegal being defined as a criminal act), the charges are unlawful (against civil law).

Either way, you will end up paying the overdraft.

Jay I know you work for a bank but really they can't have it both ways. If there are charges on the account and you are taken to court over the overdraft then you can apply for a stay until the test case is over as you are disputing the sum claimed against you. The court cannot enforce penalty charges, nor are they in a position to refund them at the moment (if you are in England/Wales).

[chrishoyle]

Quote From Jay:

Chris, Lloyds TSB will not charge you for going overdrawn if their charges put you further overdrawn, you will, however, incurr charges when your overdraft interest or (AVA) Account charge is paid on either the 1st or the 9th of the month.

 

I'm sorry Jay, but i can point to numerous instances within in my own bank statements where this has happened.

 

Quote From Jay:

as for your original claim, providing you have changed your address with the bank, they will write to you once the court case is over.

 

It wasn't my claim, it was lethal29's. I agree with Rory32, if Lloyds are after money from you, you should be able to issue a counter claim against lloyds for the money that they owe you in bank charges. This should put the matter on hold until the test case is resolved. letting the collections agency know that the situation regarding the stay usually helps from what i have read on here. The collections agencies seem to pass the account back to the bank.

 

Chris

[Goldlady]

I agree with Rory32, if Lloyds are after money from you, you should be able to issue a counter claim against lloyds for the money that they owe you in bank charges. This should put the matter on hold until the test case is resolved. letting the collections agency know that the situation regarding the stay usually helps from what i have read on here. The collections agencies seem to pass the account back to the bank.

 

Exactly the situation I am in. About to amend LTSB's standard form which gives us various options to repay and put an extra line in saying 'we look forward to receiving your payment of £1000 representing the difference between the amount claimed by LTSB £1k and the amount of charges on the account £2k'