Do you have a good relationship with your bank? I thought I had one - well, an understanding anyway. Things have been going pretty good for the past 3 years. In fact so good that they have given me a ridiculous high credit limit on my credit cards. I even get letters from them informing me of how much they like me.
Yesterday I received a phone call from my bank to inform me that I was £67.50 overdrawn - would I like to come in and discuss the charges? "What?" I yelled into the phone (probably burst poor Troy's eardrum). How could I be overdrawn, I'm never overdrawn! It turns out that the money I had transferred into my account last week did not take 3-5 days as promised but rather 7 days, thus taking me into an 'unplanned overdraft'.
Troy and I arranged a date.
I like to be organized so I did the obvious thing which was to visit the bank and get a detailed statement so that I could have an 'informed' discussion with my date. The statement told me what went wrong. Transfer of monies into my bank account didn't go through on Friday so when I did our online Sainsbury's shopping I went £67.50 into 'unplanned overdraft' over the weekend. Monday morning the transfer was reflected and all was back to normal.
Except not quite. For the pleasure of an 'unplanned overdraft' over the weekend my bank charged me a total of £45. Talk about getting a whipping!
Before I visited my date I received a letter from my bank stating "you asked us to make a number of payments for you on 24th April 2009....blah blah". I did? There's more? On the statement there's only one transaction taking me into 'unplanned overdraft'!
I was under the impression that a debit card is declined when there's insufficient funds, at least this is what all my other banks have done when there's insufficient funds (month end can be a nail biter!).
Calm but a little confused as to the complex ways of the banking world I wondered off to meet my date. I showed Troy my letter and statement and asked my questions. Troy assured me that they don't decline Visa cards - for that I would need to have a 'special order' which will cost me £10 pr month. I'm a little surprised - I have to pay them to decline my debit card before there's insufficient funds? Troy confirms that this is standard procedure for his bank. But not to worry, Troy is going to cancel the £45 'unplanned overdraft' charge because it's the first time this has happened and I'm such a valued customer.
My next question is about the big fuss made about the overdraft. Why do I have to come into the bank to have my 'unplanned overdraft' charge canceled if they intended to cancel it anyway? Surely they could have just told me this on the phone or written a nice letter.
Troy told me that this is his bank's standard procedure. I stared at Troy for a while, trying to make up my mind if I should tell him that I opened a bank account with another bank yesterday and I intend to transfer my account. But I decided against it. Troy looks uncomfortable and I don't know if it's because of me or if there is some other factor in his life that makes him feel so uncomfortable in his own skin.
At the end of the day Troy is just another dude trying to do his job. He is a human being with his own range of issues - some of which might be bigger than mine. It wasn't a personal attack on me, merely an automated process that triggered off a chain of events.
There's a time to fight and there's a time to move on. I feel it's time for me to 'move on'.
I'm not sure if I'm any wiser to the ways of the banking world though - except for that it has to do with banking procedure.
It's that time of year again
4 hours ago
12 comments:
I think I'd be a little be pissed off.
In Canada too you have to pay to not go overdraft by mistake (I once made the same mistake as you, I mean, it's not my fault that bank take 7 days to process my pay check!!). I hate that.
In my experience, any banking fee can be canceled provide you are right, a reasonable customer and complain a bit.
Zhu - The charge of £45 was annoying but it's also about the time wasted on sorting it out. I'm not in a place where I have one hour to spare just so that a bank manager can impress me with the his definition of 'good service'.
Interesting enough - we had a similar situation with another bank where we keep our business account. They phoned first to inform us and offered a solution to the 'problem'. That's the bank I'm moving my account to.
Caroline, you're a South African! In South Africa accidental overdrafts would be disastrous!
It took me ages to get used to the SA banking system. All the time I had to spend physically in the bank... and all the different services that you could only do at your local branch... not just any given FNB branch. A real pain when you've moved!
Generally they say that clients are way to faithful to their banks (Norway). They need to be shown a backside once in a while! Well done!!
Amazing how banks can make a profit out of anything! Even if you don't have the money to pay them with...
Jonny - Amen brother, ain't that the truth!
LadyFi - Exactly! Last year it was on the news - about how the banks were 'charging' newly graduated students into the 1000's. The youngsters didn't have money for food at the end of the day.
They jump on you when you are at your lowest!
The only ones whoever make money from money - are the banks! And yes - I agree with Jonny! The banking charges in SA are outrageous!!! Something needs to be done about it!
You talk about nail biting stuff at the end of the month - tell me about it, I check my balance first before I shop that way no MORE embarrasment, but mine does get declined if it is not enough. I disagree with Jonny though 45 pounds is a hell of a lot of money to go into overdraft for what appreared to be very little and for such a short time. That is over R 600 come on Jonny no ways SA bank would charge you that?
Kirsty - yebo, you go sista.
Joanne - SA banks vex me because of their little monthly charges to keep an account with them. At the end of the month when you calculate those little individual charges they amount to a small fortune.
Not to mention if you receive a monthly pension from overseas (like my parents) they won't even tell you the exchange rate that they have used. Nor will they account for the 'difference' in calculation of when the money was sent from Norway and arrived in SA (and we are talking a regular missing amount of +-R1000 pr month). Then there's the charges for receiving the money. I shudder to think how much money they have made out of my parents over the years.
Here they don't charge you admin fees but rather wait for an opportunity to jump on you i.e surprise overdraft that you didn't ask for. Same thing different style in my mind.
Joanne
In case I've been misinterpreted I was just talking about banking in general terms. 45 pounds or the equivalent in any other currency and parts of the world is shocking! I would have shouted at the guy, written a nasty blog article and posted comments in the local and national newspapers.
Personally I think NOK25 (R30) + 1% of the amount I draw out of an ATM is a ripoff also. 45 pounds is insane. I think we can all agree on that!
Joanne and Jonny - and what I didn't mention is that the 'charge' is actually calculated at £15 pr month + a daily fee of £15 until the 'unplanned overdraft' is canceled.
Imagine if you go away on a 10 day holiday and only get your letter from the bank when you arrive home.
I know this sounds ridiculous but it always springs to mind when I think of going into overdraft - doesnt the bank realise that I went into overdraft in the first place cos I have no money!!! Then to penalise me for it!!! shame on them!
Award for you on my blog! x
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