Case 4 - Garage Owner
This business had a £40,000 overdraft facility and operated two accounts.
No 1 account with credit balances and No 2 account with debit balances.
The customer believed that both accounts were set off for interest purposes, that is the balance of both accounts were combined and the resultant balance was charged at the ongoing interest rate and not just the debit balances on No 2 Account.
On the instructions of BANKCheck the customer contacted his bank for confirmation of the set off and verbally received same.
At this time the No 2 Current Account was overdrawn £68,000 and there was an average balance of £30,000 credit in the No 1 Account. The overall balance should have been £38,000 debit.
However investigations by BANKCheck revealed that the accounts had in effect not been combined resulting in an interest overcharge of £14,000 over a two year period
This business had a £40,000 overdraft facility and operated two accounts.
No 1 account with credit balances and No 2 account with debit balances.
The customer believed that both accounts were set off for interest purposes, that is the balance of both accounts were combined and the resultant balance was charged at the ongoing interest rate and not just the debit balances on No 2 Account.
On the instructions of BANKCheck the customer contacted his bank for confirmation of the set off and verbally received same.
At this time the No 2 Current Account was overdrawn £68,000 and there was an average balance of £30,000 credit in the No 1 Account. The overall balance should have been £38,000 debit.
However investigations by BANKCheck revealed that the accounts had in effect not been combined resulting in an interest overcharge of £14,000 over a two year period