Bank Charge News

A Sick woman is outraged at being clobbered with £300 in bank charges in just ten days.

Lydia Williams was hit with the fines as she bought essential items during a recent bout of sickness.

Miss Williams, from Southdown, has been on sickness benefit for three years with a digestive disease.

She had to stop working for BHS, where she was on a management scheme, in 2004 due to ill health.

For three years she has carefully balanced her accounts, refusing to increase her £100 overdraft limit to make sure she kept on top of her finances.

But three weeks ago, when her illness became worse, she had to venture out to buy some essentials.

“It was small things, like milk and bread,” she said.

And as the cash machine nearest her had been vandalised, she was unable to check her balance.

She spent £1.30, which put her over her £100 limit. Her bank Halifax then landed her with a £30 fine.

Unaware she had gone over the limit, she then made a series of small transactions on other essentials, the largest bill coming to £16. And every time she was fined another £30.

Over the course of around ten days, she clocked up £300 in fines - for spending some £50.

“They shouldn’t be treating people like that,” she said.

“I’m really angry. It’s ludicrous. “I’ve told friends, and many of these are friends who are working, and they’re so angry.

“They’ve had money taken before but not to the extent of £300 in ten days.”

When she arranged to meet Shelagh MacLeod, manager of Halifax in Southgate, Miss Williams was sent a text message reminder.

“I got this long text detailing time, location, branch.

“How much did it cost to do that when they could have texted me to say I’d gone overdrawn?

“I know it’s a business, I know they’ve got to make money, but doing this is wrong.

“They shouldn’t charge people like myself - genuine cases - and even people working.

“How can they justify taking so much?”

Bank charges have been a bone of contention across the UK, with many individuals taking banks to court to claim back penalties incurred when going overdrawn.

Last year a Scottish law centre supported by Citizens Advice in Scotland drew up a letter which challenged the right of banks to charge £30 for going overdrawn without permission or missing a credit card payment date.

Lawyers claimed charges at that level break the Unfair Terms in Consumer Contracts Regulations 1999, which say consumers must not be charged “a disproportionately high sum”.

This was disputed by chief executive of the British Bankers’ Association (BBA), Ian Mullen, who said banks were not charging customers more than the actual cost.

A spokesman for Halifax said: “We wrote to Miss Williams on August 20 informing her that, since we have refunded six charges in the past 12 months, we cannot authorise any further refunds.

“However, if Miss Williams is unhappy with this response we have previously provided her with details of our complaints procedure and the help that the financial ombudsman service can provide.

“We examine all complaints on an individual basis and would advise any customer who has concerns about charges to contact their bank to discuss the options available to them.”

Miss Williams said she didn’t understand the response from Halifax, stating she had only been charged twice in the past year.

She added: “It’s almost like a punishment.”