RBS Group customers due to receive refund for student overdraft charges

RBS Group is issuing refunds to student accounts dating back to 2002 for wrongly charging interest on overdrafts.

RBS and NatWest customers are due to receive typically around £100 plus 8% interest for previously being charged for interest-free overdrafts. Student customers from 2002 to March this year come under those affected.

Students were granted more than the advertised overdraft allowance and were then charged for this despite the overdraft terms and conditions clearly stating they were interest-free, the BBC reported.

David Crawford, head of current accounts at RBS, commented saying it was "very disappointing" that the bank had got it wrong.

He added that the bank hadn’t noticed it was happening because the numbers affected were relatively small compared to the total customer base.

The bank said they will use public databases to trace students who have moved home since finishing university. Refunds will be credited to customers’ accounts or sent by cheque. Those who feel they have been affected and haven’t been contacted by the 1 November 2016 should get in touch with RBS.