Cahoot - £450 charges on £250 overdraft!

[joannepsi]

Hello,

I opened a Cahoot account about 4 years ago when I was working in the UK (I am Irish). I left my job and moved back to Ireland, and got a call from Cahoot over a year ago asking me to pay some money into my account, which I did.

I had lost my Cahoot login details and to be honest it wasn't my number one priority to pay the overdraft off ASAP as I knew I was under the £250 OD limit.

However, it would appear a charge was placed on my account shortly after the last payment I made, which made me go over my authorized OD limit.

A month ago I was in the process of moving back to the UK and I rang Cahoot to get a replacement debit card. Imagine my horror to hear the automated system tell me I was £700 overdrawn!!!

I spoke to a customer service agent who, when I asked why they didn't contact me said "Well we sent you emails but they bounced saying undeliverable". I asked when they were going to bother to pick up the phone or write a letter? Exactly how much would the debt have to accumulate to before Cahoot would think hmm, perhaps we should try to contact this customer, especially as she hasn't logged into her online banking in about 3 years?

The lady said she could only apologise and that a letter SHOULD have been sent to me! She also said she would freeze the charges so the balance would stop increasing - but that was a lie as charges were applied again a few weeks ago.

I wrote a letter of complaint to Cahoot asking that they write off these charges (around £35 per month I worked it out as), and included £250 cheque to clear what I consider to be the overdraft.

I got a letter back saying they would not be writing off any of the charges.

Where do I stand? I have since paid a further £200 just to stop the charges accumulating, it is pure extortion.

[flyingdoc]

You need to start a reclaim process to get these charges back.

Submit a Subject access request to get details of all the charges and then once you know how much they have charged you - put in a claim to have them refunded.

They will say that the complaint cannot be handled until the main case against the OFT is settled but it will at least start the ball rolling.

In the meantime I would open a bank account elsewhere.

[joannepsi]

Thanks for the advice, I will do that tomorrow. Have since opened an account with HBOS.

What are my chances of getting these charges refunded? I'd like to think any court would find in my favour when these fools didn't bother to send me a letter - they were well able to write to my OLD ADDRESS last month in reply to the letter I sent them, despite the fact I insisted they email or phone me.

[flyingdoc]

It will, in all probability hinge on the test case between the banks and the OFT currently going through the courts. Keep an eye on the forums for updates.

[Fred Bassett]

If you think that's bad, read this: Financial Advice UK - Bank accounts News - Lloyds Bank Hits Student With £800 Charges For 8p overdraft!

Fred