Can't afford to pay charge!

[SalP]

Natwest has charged me £28 for a direct debit which came out, when there was not enough money in my account. I have since sorted out all my direct debits (making sure the money is in there when they come out), but I cannot afford to pay this charge!

 

The amount is due to come out on the 31st March and I currently have less than £60 a week (this is shared between my partner and I) to live on. So, if Natwest take this charge, then I will have about £30 to pay my bills and the two of us to live on, for a fortnight! I don't really want to take the bank to court over this, but do you think if I wrote them a letter, saying that they will be literally taking food, electric away from us, they may drop the charge? :-|

[rory32]

I would claim the charge back as it is an unlawful penalty charge.

 

I currently have less than £60 a week (this is shared between my partner and I) to live on.

Is this money from state benefits?

[SalP]

I would claim the charge back as it is an unlawful penalty charge.

 

Is this money from state benefits?

 

Yes, currently I am on Income Support. My partner is too and also receives DLA.

[Frustrated Consumer]

Hi SalP,

 

Firstly, was this the first overdrawn fee you've had in a long while? If so, they may be inclined to cancel it but would be less inclined if you're constantly going overdrawn.

 

Secondly, I would suggest that you walk into a local branch (especially if there's a local where they know your face) and make the plea face-to-face first before writing a letter. Being faced with a person usually makes the Customer Service Officer more amenable than a cold letter. They receive tons daily.

 

Only if this doesn't work should you write a letter. There's plenty of advice on this forum how to do that but the heart-strings strategy is still a good mix to add to the more serious stuff you'll write.

 

These are just suggestions, hope they work so you won't have to go the whole hog. To be honest, they probably won't want to go to court over £28 either!

 

Good luck!

 

FC

[citizenB]

I was going to put a link, but the letter might be incorrect. I will get some advice and get back to you.

[Mr lex]

CitizenB is right as is F/C, first, try over the counter at your local branch, or, if this is unsuccessfully send this letter :-

 

NOTES

 

There is a process called the "Right of Appropriation" - this allows you to assign funds entering your account to specific events and needs. This is for ANY funds, not just benefits...

 

Some banks do not understand this process since it is not very often used. You might need to explain it when handing in the letter.

 

Also, whilst we can try this, there are 2 possible problems;

 

1) Ideally, you should give the bank 7 days notice. If they are aware, they could disregard the request.

 

2) They may just disregard it anyway and swallow up the money. You would then have to complain and involve the banking Ombudsman etc and, eventually, get it resolved. This could take a few weeks and would not solve the immediate problem.

 

 

 

************************* ************************* ****************

 

Please note that items in red are for example purposes only and should be changed to suit your own requirements.

 

************************* ************************* ****************

 

 

 

 

[your address]

 

 

 

 

 

[bank name & address]

 

 

 

 

[date]

 

 

 

 

 

 

 

 

RIGHT OF APPROPRIATION

 

 

 

Dear Sir/Madam,

 

ACCOUNT NUMBER: xxxxxxxxx

 

 

 

I am writing to inform you that I am due to have a Tax Credit payment of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes;

 

Rent £xx

Utilities bills £xx

Housekeeping money £xx

 

I will withdraw the money on the day that it is deposited for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

 

 

Yours faithfully,

 

 

[signature]

 

 

[print name]

Edited March 18, 2009 by Mr lex

[SalP]

Thanks for all your replies, I will try the bank first, but don't hold out much hope at all!!

 

This is all too much, now I have also just received, in the post a request to pay another £29, that I haven't got, in the next 7 days! This isn't to Mbna though. I don't anymore money until the Monday after next and my partner gets a little Wednesday and Friday, but we will badly need food, electric etc.

 

I just don't know what to do!!! :(

[citizenB]

I think what you must consider is to cancel ALL direct debits from your account, unless they are for essential outgoings ie rent/mortgage, utilities, council tax. Credit card debts and unsecured loans come way down the list of priorities.

 

Write a letter to your bank, cancelling direct debits for all non essential payments.

 

It might also be a good idea to speak to Citizens Advice Bureaux.

[SalP]

Well, Natwest have turned down my verbal appeal to have the charge waived. I was given the customer relations number to phone and phoned it, but there was just a really long recorded message about how the banks have gone to the High Court, concerning the fairness (or something) of their charges and are awaiting the result, so all customers calling to complain about these charges are told that the case is pending and you can't even speak to anyone!

 

I suppose I will end up having to pay the charge and feeling even more depressed than I do now, from lack of money!

[rory32]

Have you taken all your money out of this account and cancelled the DD's?

 

When is your benefit due to be paid?

 

You need to open a new bank account and start using that rather than the Natwest one. You can then put in a claim for the charge.

 

You can open a basic bank account fairly easily and it takes about a week or so to get one opened. Information about basic bank accounts is here

[SalP]

I only have one direct debit currently and have just (back in January) opened the Natwest basic bank account. Do I really have to open another one, just to avoid this charge?? I am already in debt with Barclays and Mbna and only paying them £1 a month. Won't this make things much worse for me, if I have another debt with someone else?

 

I don't actually get the benefit paid into my account, as it is a joint claim with my partner, so he gets the money and gives me some to pay into my Natwest account.

 

I think I'm going to have to pay this charge and just make sure I never go overdrawn again!

[rory32]

Do I really have to open another one, just to avoid this charge??

It would be in your best interests to do so.

Won't this make things much worse for me, if I have another debt with someone else?

You won't have a debt as the charge is a penalty and as such is unlawful. If you start claiming the charge back they have no way of enforcing it. I certainly wouldn't be paying it.

[yourbank]

I only have one direct debit currently and have just (back in January) opened the Natwest basic bank account. Do I really have to open another one, just to avoid this charge?? I am already in debt with Barclays and Mbna and only paying them £1 a month. Won't this make things much worse for me, if I have another debt with someone else?

 

I don't actually get the benefit paid into my account, as it is a joint claim with my partner, so he gets the money and gives me some to pay into my Natwest account.

 

I think I'm going to have to pay this charge and just make sure I never go overdrawn again!

 

Hang on a minute, if you have a step account then there is no £28 maintenance charge coming out at the end of the month unless the bank have changed their terms and conditions on that account in the last 2 months.

Are you sure you have a step account or a current plus account?

[SalP]

Hang on a minute, if you have a step account then there is no £28 maintenance charge coming out at the end of the month unless the bank have changed their terms and conditions on that account in the last 2 months.

Are you sure you have a step account or a current plus account?

 

Have only just read this post!

 

I only have a basic current account, as I requested that, when I joined back in January.

 

Ooops no, have just looked and it is a Current Plus account!

[yourbank]

Have only just read this post!

 

I only have a basic current account, as I requested that, when I joined back in January.

 

Ooops no, have just looked and it is a Current Plus account!

 

In that case, unfortunately, it is £28 maintenance charge. I am aware that some staff do not know necessarily as much as they think they do on simple charges. Thought I would check to make sure.

[SalP]

Natwest are taking this charge out tomorrow and OH and I will only have £20 left to live on, until next Friday (10th April). We are almost out of electric and have no food in, apart from tonight's dinner.

 

I'm thinking of asking to borrow some money from my mum, but I already owe her £50, that I borrowed from her in January and she, although comfortable, isn't rich!!

 

Feel so down and stressed!!