Aib Charges

danielsan122

Tonight I am absolutely fuming with AIB.My story is set out below,before I run a hurricane through my branch on Monday I want to see whats up with this situation

I currently have a standing order of €50 each week which goes into my online savings account from my current account. With the recession and all that blah blah most weeks it ends up being take out in excess of my limit Eg; ''Im over my overdraft by 50 euro''. Most times to avoid any charges i transfer the €50 back to my current account to have it at my set level.

Every now and again I use the €50 to pay of credit card or transfer it someone I may owe money to,leaving my account over the overdraft limit by €50,but every Friday when I am paid,any over the limit amount is paid back by my wages being lodged (without fail) for the last year or so. My wages always cover any over the limit amounts.

I checked my account yesterday and AIB have taken out €315 euro saying that I have been using the banks money. When i asked the customer service line people,was this an over the limit charge for each time I went over ?,they said no ! They told me when I transfer money back to cover a standing order,Im effectively using the banks money.

My question is,how do i owe them this money,if each week I pay whatever I have gone over by when my wages are put into my bank ?

Apologies on the extreme confusion of this issue but I completely lost as how they are trying to justify this. You should also know,they never informed me that they were taking out this amount. They just went ahead and took it out,without any written communication or prior phonecalls.I also find it quite ironic,how they customer relations guy tells me ''oh they are going through everyone's accounts at the moment''.

Trying to claw back every penny to cover their bottom line no doubt. I have been a customer with them for over 8 years with a perfect credit history.

any suggestions on what I should do ?

dudara

Moved to Banking & Insurance & Pensions

dudara

gogo

danielsan122 wrote: »

I currently have a standing order of €50 each week which goes into my online savings account from my current account. With the recession and all that blah blah most weeks it ends up being take out in excess of my limit Eg; ''Im over my overdraft by 50 euro''. Most times to avoid any charges i transfer the €50 back to my current account to have it at my set level.

Every now and again I use the €50 to pay of credit card or transfer it someone I may owe money to,leaving my account over the overdraft limit by €50,but every Friday when I am paid,any over the limit amount is paid back by my wages being lodged (without fail) for the last year or so. My wages always cover any over the limit amounts.

They told me when I transfer money back to cover a standing order,Im effectively using the banks money.

My question is,how do i owe them this money,if each week I pay whatever I have gone over by when my wages are put into my bank ?



I have been a customer with them for over 8 years with a perfect credit history.

Firstly tried to cut down your post to make more sense of it.
You are using a standing order to put 50e into a savings a/c, you rarely seem to have this money, so the bank pays it for you, and then you basically transfer their money back to them to avoid confusion? Sometimes you dont bother to pay it back until payday. I assume the savings a/c is also with the aib as well this is probably why they are allowing the payments to go through.

You are actually using the banks money, and Id suspect the charges are actually referral items charges, ie, they are actually from going over your overdraft limit, they just explained it to you arseways. ie, going over your overdraft limit is using the banks money. While they seem high, they do seem right if you are doing this on a weekly basis, which it sounds like you are, these charges can range from 4-22 euros per day, depending on how often you go over. Also if other things are hitting the account as well and you dont have the money for them, this would add to the fees.
I would call in and have a chat and get them to explain it better.
If it is referal item charges, these charges would be outlined in the fees and charges booklet, and are quiet standard charges. TBH, I cant tell if these fee are justified without seeing your account, but i have seen fees this hight before, not to unusul. But I am surprised that they didnt send you out a letter of notified fees and charges in advance, dont know if aib do this tho.

Course, I could be completly wrong.

One last thing, constantly going over your overdraft limit, regardless of when you pay it back, is not 'perfect credit history', far from it actually.

chasm

Well the first thing i would suggest is to stop the standing order before it incurs any other fees or charges.
If you have a standing order for €50 from your current a/c into your savings a/c and it's leaving you overdrawn by that amount then you clearly cannot afford to "save" it, also it seems pretty pointless to me to be going over your overdrawn limit to pay the money into your savings a/c only to pay it back into your current a/c afterwards.

Laphroaig52

You have an overdraft and most weeks you overdraw your overdraft?
And you still think you have a perfect credit rating?

Bloody hell.

Have you ever heard of MABS?

amdublin

danielsan122 wrote: »

Every now and again I use the €50 to pay of credit card or transfer it someone I may owe money to,leaving my account over the overdraft limit by €50,but every Friday when I am paid,any over the limit amount is paid back by my wages being lodged (without fail) for the last year or so. My wages always cover any over the limit amounts.

To me it seems that it is charges for being Over your Overdraft.

Why should they give you additional funding/money (for a week or so at a time) and not charge you for this?

I fail to see the issue with your bank here. I only see an issue with the way you are managing your finances and running your bank account.

Tbh, in my personal opinion, even with the money they are making from you, the amount of work you are causing the bank means that you are the type of customer they probably do not want. You should be careful that at some stage they don't just ask you close your account and take your mickey mouse business elsewhere.

Suggest you look at your budgeting and cancel the s/o for you "savings" which (a) you are not actually saving and (b) is costing you money.

danielsan122

Ok hold the phone here guys

I never asked for an financial advice.Im sorry I can't keep my finances in control,but 50 Euro each week,come guys get a grip on reality,half the country is going down the pan,with most people in arrears on some form of debt. A dam site more than the odd 50 a week too !

Ok,getting back to the question that was not obviously read. The customer service line informed me that this charge was NOT a bank charge for going over my limit,if it was I could handle that and cut my losses. If its not such a charge,they have effectively charged me €300 for reasons unknown.

Anyway,its unlikely I will get any clarity here,apart from advice on how to run my finances so will just contact the branch instead.

Thanks anyway.

chris85

danielsan122 wrote: »

Ok hold the phone here guys

I never asked for an financial advice.Im sorry I can't keep my finances in control,but 50 Euro each week,come guys get a grip on reality,half the country is going down the pan,with most people in arrears on some form of debt. A dam site more than the odd 50 a week too !

Ok,getting back to the question that was not obviously read. The customer service line informed me that this charge was NOT a bank charge for going over my limit,if it was I could handle that and cut my losses. If its not such a charge,they have effectively charged me €300 for reasons unknown.

Anyway,its unlikely I will get any clarity here,apart from advice on how to run my finances so will just contact the branch instead.

Thanks anyway.

Get a grip will you! we obviously cant give you the reason for the debit by the bank. Ask them can they take the chip of your shoulder about the banks also.

Its a valid opinion that you are effectively using a credit facility (your overdraft) to fund your savings. Why dont you just get out of your overdraft by using your savings. Your interest rate on the overdraft will be higher than on your savings so costing you money basically but beg our pardon for trying to help you with your finances.

chasm

danielsan122 wrote: »

any suggestions on what I should do ?

danielsan122 wrote: »

I never asked for an financial advice.

I love the way people come onto this site, ask for advice and then get uppity about it if it isnt what they want to hear!

and just for the record i think you may want to take your own advice and "get a grip on reality", because if you did then maybe AIB wouldn't be charging you €315!

keithclancy

danielsan122 wrote: »

Tonight I am absolutely fuming with AIB.My story is set out below,before I run a hurricane through my branch on Monday I want to see whats up with this situation

I currently have a standing order of €50 each week which goes into my online savings account from my current account. With the recession and all that blah blah most weeks it ends up being take out in excess of my limit Eg; ''Im over my overdraft by 50 euro''. Most times to avoid any charges i transfer the €50 back to my current account to have it at my set level.

Every now and again I use the €50 to pay of credit card or transfer it someone I may owe money to,leaving my account over the overdraft limit by €50,but every Friday when I am paid,any over the limit amount is paid back by my wages being lodged (without fail) for the last year or so. My wages always cover any over the limit amounts.

I checked my account yesterday and AIB have taken out €315 euro saying that I have been using the banks money. When i asked the customer service line people,was this an over the limit charge for each time I went over ?,they said no ! They told me when I transfer money back to cover a standing order,Im effectively using the banks money.

My question is,how do i owe them this money,if each week I pay whatever I have gone over by when my wages are put into my bank ?

Apologies on the extreme confusion of this issue but I completely lost as how they are trying to justify this. You should also know,they never informed me that they were taking out this amount. They just went ahead and took it out,without any written communication or prior phonecalls.I also find it quite ironic,how they customer relations guy tells me ''oh they are going through everyone's accounts at the moment''.

Trying to claw back every penny to cover their bottom line no doubt. I have been a customer with them for over 8 years with a perfect credit history.

any suggestions on what I should do ?

1. €50 each week from savings account to current account
Occasionally overdrawn by 50 euro, Most times you transfer it back.

2. Every now and again I use the €50 to pay of credit card or transfer it someone I may owe money to leaving my account over the overdraft limit by €50.

It sounds like your current account is constantly overdrawn, an overdraft is ONLY for occasional use.

Theres an annual fee of 25.39 + Interest on your overdraft of 11.95%.

Do you have an overdraft facility approved by the bank ?

All of these fees add up overtime, but tbh funding savings when your in the red each month is just silly, the interest on the savings will be 10 - 11 times less than the interest on your overdraft, its WORSE than a credit card.

Perhaps you should remove the standing order facility, get detailed statement for the last year and work out exactly what you owe against the charges stated on the terms and conditions of your account with AIB.

Its possible it may be a mistake but I doubt it, alot of people don't really understand that the bank isn't giving you free money.

Maybe consider opening a savings account with the Credit Union and physically go in to deposit the money, this will give you a better feeling on where your money is going.

amdublin

danielsan122 wrote: »

Ok hold the phone here guys

I never asked for an financial advice.Im sorry I can't keep my finances in control,but 50 Euro each week,come guys get a grip on reality,half the country is going down the pan,with most people in arrears on some form of debt. A dam site more than the odd 50 a week too !

Ok,getting back to the question that was not obviously read. The customer service line informed me that this charge was NOT a bank charge for going over my limit,if it was I could handle that and cut my losses. If its not such a charge,they have effectively charged me €300 for reasons unknown.

Anyway,its unlikely I will get any clarity here,apart from advice on how to run my finances so will just contact the branch instead.

Thanks anyway.

You obviously know everything yourself. Don't know why you bothered posting really lol!

Good luck with that ol' saving thing. Eh yeah, sounds like you've got a great system going there! This time next year I'm sure you'll be a millionaire :rolleyes: