Increasing overdraft monthly charges

[michellecorlett2005]

Hi

my daughter has a flex account with nationwide since leaving school. about a year ago she asked for an upgrade and was refused, as a result she moved banks. Her account balance was zeor. Nationwide applied a charge of £20 to her account, this with interest is now sitting at £340+. I have written letters on her behalf, during the stays etc, however they did reply, but did not stop the charges being applied each month and balance grew and grew.

 

This week she received a letter from DCA, with the usual threats to take away her stuff etc etc, she is scared, she still lives at home, she works but on a casual contract and some weeks doesn't have any money at all, which is the reason she still lives at home. she is not commited to anything other than car insurance each month which she obviously needs to get to and from work.

 

Now what i need to know is where to go with this. Can she be defaulted on this balance considering it is completely made up of bank charges, how can we approach the bank to reduce the balance when they previously weren't interested in any compromise, their way or no way. I cannot see this going away easily, some days she says she will just ignore it but that damages her life for the next 6 years if it hits her credit file, at which point she won't be to many years off 30 years old and am sure then she won't still want to be living at home because some rotten faceless bank have ruined her life as a youngster

 

any suggestions would be very much appreciated

thanks

Michell e

[sharkfin]

That is outrageous and unreasonable behaviour from them. But doing nothing and just ignoring it won't make the problem go away. Your daughter (or you) need to go on the offensive. Stop asking them nicely to be reasonable as it obviously has no effect. Get firm with them. Don't be apologetic. Be outraged. They stole your daughter's money!

 

Nationwide are actually easier to deal with initially than some of the other banks as you don't need to get into all that hoo-ha about writing to them to ask for copies of your statements, you can just sign up to their internet banking and look at up to six years worth of your monthly statements online.

 

List the charges applied to the account and write to Nationwide innsisting that they be refunded. Don't forget to add interest to each charge using the spreadsheets available on this site. Go on, start the process today!

Edited July 15, 2010 by sharkfin
typo

[michellecorlett2005]

infuriatingly enough, this is still ongoing, today receiving a dca letter from Bryan Carter Solicitors with a possible new balance of $450.

I have started a letter but am unsure if i'm right, but as the account is made up completely of charges, can the customer be charged for a charge so to speak, is there an element within the cca that stops this from happening

 

help most gratefully received

thankyou

[Feebee_71]

What reason have Nationwide ever given for the initial charge of £20 on the account after it was added to the account?

 

I can't see how they can add charges to an account with a zero balance that isn't being used just because it's there.

 

Will be interested to see where this case goes.

 

Feebee_71

[mjb2]

I am interested in following what happens here as I am in exactly the same position regarding an o/d made up entirley of charges from an initial charge on a then dormant a/c. No posts here since Sept. Any further developments?

 

Unfortunately I am now faced with a ccj and hoping for some help from this CAG to mount a defence.

[Surfer01]

Why was the original charge of £20 raised? As long as she disputes it they cannot issue a default notice and should not be passing it onto a DCA. She can only get a CCJ if it goes to court and if it did go to court, it will make Nationwide look very bad in the headlines and the case may get thrown out.

[sharkfin]

Yeah, what was their reason for the initial £20 charge. I bank with Nationwide and for as long as I can remember, their charges - for bounced cheque, returned direct debit, going over credit limit etc - are £30. What was the reason for the £20 charge?