Questions and answers
Common questions and answers about the changes
What are the changes to overdraft borrowing charges in my Terms and Conditions?
What are the changes in my Terms and Conditions to the cheque clearing and the Financial Services Compensation scheme?
What are the changes to overdraft borrowing charges in my Terms and Conditions?
From 3rd January 2008, the way we describe overdraft borrowing in our Terms and Conditions and Tariff will change. So will the names of some of our fees.
The way we describe how you can borrow from us using your account now reflects how you use your account in practice. What we used to call an "authorised overdraft" will now be known as "Planned Borrowing" to reflect the fact that you have planned for the eventuality of needing this borrowing and agreed it in advance with us.
However, we understand that sometimes life does not always go to plan. Therefore, what we used to call an "Unauthorised overdraft" will now be known as "Unplanned Borrowing" to reflect the fact that this borrowing is not agreed in advance and is granted on the spot when you make a payment that takes you into overdraft beyond any agreed Planned Borrowing limit. We may not always agree to your request for Unplanned Borrowing. As it is more expensive to use Unplanned Borrowing, and is less certain, you should always try to plan your overdraft needs with us, though you are free to make such a request whenever you like.
In respect of customers already on Current Account Plus or other current accounts the way we charge you for overdrafts is not affected by these changes and we have not introduced any new charges on your account.
The Table below shows the new names and provides an explanation of the charge.
| New name applicable from 3rd January 2008 | Old name | Explanation of the charge |
|---|---|---|
| Debit Interest Rate for Planned Borrowing | Debit Interest Rate for Authorised Overdraft | The rate of interest we will charge you on any Planned Borrowing balance. Any changes to this interest rate (if applicable) are advised in your letter. Current interest rates are detailed in the enclosed Tariff. |
| Debit Interest Rate for Unplanned Borrowing | Debit Interest Rate for Unauthorised Overdraft | The rate of interest we will charge you on any Unplanned Borrowing balance. |
| Daily Unplanned Borrowing Fee* | Irregular Debit Movement Charge | The fee (currently £25) we charge each day we make a payment when you request Unplanned Borrowing. The fee is only charged where the amount you borrow at the end of the day exceeds the Buffer (currently £25). |
| Monthly Unplanned Borrowing Fee* | Monthly Unauthorised Borrowing Fee | The fee (currently £25) charged each month you take Unplanned Borrowing. You will be given 14 days notice before we debit your Account. |
| Cheque Card Overdraft Fee* | Debit Card Abuse Fee / Cheque Guarantee Abuse Fee | The fee (currently £35) we charge when you request Unplanned Borrowing by issuing a cheque backed by guarantee and we would have refused payment if the cheque had not been guaranteed. |
| Returned Item Fee | Items which you authorised which we return unpaid | The fee (currently £35) we charge you if we do not agree your request for Unplanned Borrowing and return a payment which is a cheque, standing order or direct debit. |
* Not applicable to all accounts – please refer to your Tariff.
How can I avoid charges on my account?
There are lots of ways you can avoid paying charges on your account. Always try and arrange Planned Borrowing with us – it will usually be cheaper for you if you do. You can discuss Planned Borrowing and other options (such as personal loans or credit cards) with the staff in our local branch. You can also monitor payments in and out of your account online or by telephone if you have registered for internet banking or telephone banking, or by contacting your branch. If you’re aware that further payments may be leaving your account that will leave your balance in overdraft outside any agreed limit, pay in cash at your branch sufficient to cover the payments due before 3pm that day and you will not be charged.
What are the changes in my Terms and Conditions to the cheque clearing and the Financial Services Compensation scheme?
Following a change on 1 October 2007, in respects of deposits with a UK office, payments under the scheme are limited to 100% of the first £35,000 of a depositor’s total credit balances with the Bank. Previously this was limited to 100% of the first £2,000 of a depositor’s total credit balances with the bank and 90% of the next £33,000, resulting in a maximum payment of £31,700.
We have also revised terminology in our terms and conditions in relation to cheque clearing.