Ulsterbank requested debit cards back

[justo]

Over the last month I have gone over my overdraft by 100 - 200 Euros.

I received a letter from Ulsterbank today seeking my debit cards back as they claim they had to pay for debit card transactions when I was overdrawn. (Previously, if I was overdrawn the transaction would not complete).

If I cut up my cards and return them I can't access funds in my account for shopping, cash withdrawals,etc. They say in the letter, if I don't return the cards they will send a debt collector (I can't remember the exact term they used) to collect the cards.

This seems very heavy handed. Since the letter was issued I have made a scheduled lodgement from my salary into the account to bring it within the overdraft limit. There are regular scheduled deposits into the account.

I can't do without my debit card..

What should I say to the bank when I call them in the morning?

 

[Brendan Burgess]

Hi justo

This is very odd.



I thought that if you tried to take out cash it would say "no funds".

Are you sure it was just the last month? Banks don't like losing customers so they would normally only take this sort of action if there was a long history of messing on the account.

I don't know why they would need to send a debt collector. They can simply cancel the card.

Brendan

 

[RedOnion]

It's possibly because of contactless transactions - to speed up the transaction, minimal validation is done, so you can go overdrawn.
You would have accepted updated t&C's when you received the card on what they can do.

Are UB offering to replace with a non contactless card?

 

[Brendan Burgess]

It's possibly because of contactless transactions -

That is a very good explanation. I am surprised that this issue has not been flagged before.

People should not lose their card as a result, but it would be reasonable to replace their contactless card.

Can Ulster not just stop the card? Or can you put stopped cards through cash-less transactions?

Brendan

 

[thedaddyman]

UB T&C's state they have the right to cancel the card if there are irregularities on the maintenance of the account or if their credit risk is increased and they believe you are at risk of not being able to pay it back. Persistantly going over an OD limit would suggest the latter to the bank

 

[Palerider]

Don't overdraw without authority, these cards are too easy to use, if you use your card without funding available you are breaking the t/c's and can lose access to the card function, understandable of course.

 

[cmalone]

Complain. Progress then to FSO

Move onwards and upwards - open account with another bank and look ahead - KBC might work for you.

 

[RedOnion]

Complain. Progress then to FSO

Move onwards and upwards - open account with another bank and look ahead - KBC might work for you.

KBC's t&C's cover the exact same outcome if they so wish (I'm sure all the banks do). UBs approach as outlined in OP seems heavy handed, so there might be more to it.

"1.4 The Debit Card is and remains the property of KBCI. We reserve the right at any time to cancel, suspend, recall or retain
the Debit Card. We may at our sole discretion refuse to re-issue, renew or replace any Debit Card.
1.5 You should ensure that you have sufficient funds in your account to cover any payments or transactions you enter into
using the Debit Card. The fact that you may be issued with a Debit Card does not afford you any credit privileges in
connection with the Account or any entitlement to overdraw on your Account except as may be provided by a separate
credit agreement entered into between you and KBCI."

 

[thedaddyman]

Complain. Progress then to FSO

Move onwards and upwards - open account with another bank and look ahead - KBC might work for you.

fso won't touch this, UB have withdrawn a card in accordance with their T&C's due to the account holder persistently going overdrawn. It might not be the best customer service in the world by UB but that doesn't mean UB have done anything that the FSO can rule was incorrect.