Overdraft arrangement fees

[StuffedbyBarclays]

Would appreciate CAG members response to this 

Two possible scenarios:

Please tick one of the boxes which best meets your understanding of the condition below written into a Business Overdraft Facility letter

 

“An overdraft fee of £100 will be debited to the Company’s current account in monthly instalments of £8.33 on our usual charging dates until further notice from the Bank

 

The fee for the overdraft facility is a one off £100 which will be paid by 12 instalment of £8.33 regardless of how long the facility remains in place

 

The fee for the overdraft facility is £100 per year payable by instalments of £8.33 for so long as the facility remains in place.

 

[Andyorch]

The fee for the overdraft facility is £100 per year payable by instalments of £8.33 for so long as the facility remains in place.

[StuffedbyBarclays]

So the fee is not £100, in fact mentioning £100 is pointless if it is simply £8.33 per month why not just say so?

[Andyorch]

Well £99.96....near enough...last payment will probably be  £8.37

[StuffedbyBarclays]

Now getting confused, are you saying it is £100 per year or a one off £100 ( or £99.96) ?

[Andyorch]

You said above...

 

The fee for the overdraft facility is a one off £100 which will be paid by 12 instalment 

 

 

[StuffedbyBarclays]

Now getting confused, are you saying it is £100 per year or a one off £100 ( or £99.96) ?

[Andyorch]

Im not saying anything simply replying to your first post were you stated  3 different interpretations.

[StuffedbyBarclays]

More apologies. I was asking if folk considered the conditions in the overdraft letter to be EITHER a one off fee or a monthly fee for as long as the overdraft was available. The start of my post was what the bank had written and the rest was asking what folk understand it to mean. For me they are trying to charge £8.33 a month which they have done for the last 6 years rather than the one off fee of £100.

[Andyorch]

Well you have the terms and conditions...does it state a one off fee or an annual fee....I doubt it would be a one off fee for life of the overdraft...your a business and them too.

[StuffedbyBarclays]

It states exactly what I posted right at the start namely

“An overdraft fee of £100 will be debited to the Company’s current account in monthly instalments of £8.33 on our usual charging dates until further notice from the Bank”

That was their condition that I am questioning, whether it means a one off payment or a forever payment.

 

[Andyorch]

I think the clue is in the following......" until further notice  "....

[StuffedbyBarclays]

Yes, point taken but if that's the case why include the figure of £100 at all if it is irrelevant ?

[Andyorch]

Does your insurance company renew your policy by telling you the monthly direct debit figure only ?

[StuffedbyBarclays]

If my insurance company were renewing my policy they would tell me the annual charge and the monthly instalments, in other words the total amount would be expressed as a certain amount PER YEAR.  This phrase specifically says the fee is £100, not £100 per year and that it will be paid by instalments of £8.33 per month (presumably because £100 cannot be divided by 12 exactly.