Sentences with phrase «unauthorised overdraft»
An "unauthorised overdraft" refers to when you spend more money from your bank account than what you actually have, without permission from the bank. It is like borrowing money from the bank without their approval, which can lead to extra charges and fees. Full definition
The OFT has advised that it will now consider the detail of the judgment before it decides whether to continue its investigation into unauthorised overdraft charges.
newlawjournal.co.uk
Daniel Kelly, the Creditor Relations Analyst from Christians Against Poverty spoke to Premier during News Hour and welcomed the news saying: «We've been asking for a lot of this dialogue on unauthorised overdrafts, in terms of how they work.
However, he did not attribute all of debt and poverty problems to unauthorised overdraft fees alone, stating:
The charges and interest on most unauthorised overdrafts can massively increase your debt.
The FCA also says: «A firm must not close accounts or threaten closure when it might reasonably appear that this is for the purpose of penalising customers that have complained about unauthorised overdraft charges.»
A rookie barrister has lost his landmark legal battle to force NatWest bank to justify its fees and to cough up damages for taking # 2,500 from his account in unauthorised overdraft charges.
The question before the court was whether the Office of Fair Trading (OFT) was permitted to investigate the fairness of bank charges levied for unauthorised overdrafts and other related charges under reg 6 (2) of the Unfair Terms in Consumer Contracts Regulations 1999 (SI 1999 / 2083)(the regulations).
As a former partner in our Finance Disputes team, Maxine has gained experience in a broad range of investment banking and retail disputes, including disputes concerning derivatives, allegations of mis - selling, unauthorised overdraft charges and credit card charges, breach of mandate and credit default reporting.
And while it may seem like a good idea, using an unauthorised overdraft to pay for an urgent cost might actually not be.
In some cases, unauthorised overdrafts are more expensive than payday loans, a type of small loan.
• Unauthorised overdrafts.
Maybe they would have ruled differently if they were presented with one of the many thousands of people who slipped into an unauthorised overdraft due to error and got caught in a snowballing spiral of charges.
Say you dipped into your unauthorised overdraft by # 2.50 and incurred a # 35 charge, it's utterly disproportionate.
40 % is obviously very high to Brian, but this pales in comparison to some other options (unauthorised overdraft, payday loans, loan sharks, etc).
Let's say you have # 3,000 sitting on a Tiger card at 16 % APR, plus # 1,000 on your Clothes R Us store card at 35 % APR, and a # 500 unauthorised overdraft that's costing you # 100 a year.
Lord Walker stated at para 47: «Charges for unauthorised overdrafts are monetary consideration for the package of banking services supplied to personal current account customers... I do not see how [the Court of Appeal] could have come to the conclusion that charges amounting to over 30 % of the revenue stream were (para 111) «not part of the core or essential bargain».»
● When banks give an unauthorised overdraft following a payment request they do provide a service.
Banks» terms and conditions which impose charges on customers for unauthorised overdrafts are subject to the test of fairness in the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCR 1999), the High Court has ruled.
In April this year judgment was handed down in the first part of the eagerly awaited test case brought by the OFT against the UK's leading high street banks seeking a ruling on the fairness of their unauthorised overdraft charges (Office of Fair Trading v Abbey National plc and others [2008] EWHC 875 (Comm), [2008] All ER (D) 349 (Apr)-RRB-.
● However, the charge applied by banks for an unauthorised overdraft is not «the price or remuneration» for the service within Regulation 6 (2)(b), and so is not exempt from any consideration of fairness.
The banks argued that their fees were the price of providing an unauthorised overdraft, or alternatively were part of the «whole package» of prices and services that a current account consists of, and therefore the fairness assessment is not applicable to the fees.