LIAM BERGIN,
Sir, - I have been a loyal customer of Ulster Bank for 13 years but I am about to close my accounts with it. I have noticed a marked change since the recent takeover by Royal Bank of Scotland. I have had an overdraft since opening my first account and have long been aware that for this convenience, I was charged:
1. A high rate of interest, increasing if the overdraft limit was exceeded.
2. An unauthorised transaction charge of about €5 per transaction if I breached the limit.
I believe these charges are widely known and commonly accepted. I don't quibble as the facility is useful and I realise that convenience costs money. I am also fully aware that the banks make significant profits from these transactions (no doubt disproportionate to the levels of risk and effort that they require.)
However, I recently became aware of the following charges levied on my account:
1.An account maintenance charge - incurred when the first overdraft transaction takes place (even where that overdraft has been authorised).
2. An overdraft arrangement fee - whether or not I use it and whether or not it is merely the maintenance of the status quo.
I queried these charges and pointed out that an account maintenance charge (levied annually) would, one assumes, cover such annual and routine items as agreement of the overdraft. Not so, I'm informed
To my mind this is akin to buying a bottle of wine with a meal and then paying for each glass we drink. I refuse to do it and despite putting myself at a significant personal disadvantage in ending a banking relationship, I will do so. I take little solace from the fact that the bank staff agree that it's wrong to double charge but are left with no choice but to do so. - Yours, etc.,
LIAM BERGIN,
Buncrana,
Co Donegal.