UPDATE - Sorry I should have said the two BoS accounts were at the same branch and as follows
Account 1 = £800 overdraft (Included in TD)
Account 2 = Used for direct debits had +£5 balance at time of entering into TD. This was not included in the TD and was the one that they applied the charge and interest to.

Welcome to the forum James123.

Do you know whether this charge was initially made before or after your trust deed was actually signed?

Hi There, thanks for responding.

The charge was deducted from my account 6 weeks after I signed my TD.

Hi James123.

I think there are probably two sides to this.

1 - Are they allowed to impose this charge? Probably, because the account was still open apparently and these are the terms you'll have agreed to. If the new debt was incurred after your trust deed began then it wouldn't be included in the trust deed.

2 - Is it fair that they imposed this charge? That's a very different question. Presumably they knew you were in serious financial difficulty by this stage and it seems that the circumstances leading to the charge being imposed were accidental.

If I felt strongly about this, I'd probably pursue the second angle and see what happens.

You may also wish to ask them when they notified you that this charge had been incurred - it seems strange that you weren't ever aware of it. Presumably statements would have been sent to you?

If they agree that you haven't been treated fairly, you may have a better case for your credit file entries being amended.

Some good advice there I reckon. Technically the bank are probably correct, but it does seem unfair and if you complain on this basis then maybe it will be easier for them just to rectify it.

I though overdrafts come under section 10 of the consumer credit act 1974 as such they would be required to provide you with statements in accordance with section 78 paragraph 4 of the same act. You might get somewhere if your go to the CAB.

Also look at when you switched, it may come under the switch guarantee thingy depending on when you did it.

Hi All,

Thanks for all the replies and advice, I am going to speak to BoS again. I'll let you know how I get on.

Update

I called BoS this morning and spoke to a complaints advisor who looked into the matter for me over the phone.

since they could not determine the reason for the charge, they have agreed to refund the £10 and have my credit file updated to remove the missed payments.

Thanks for all your advice, sometimes it just shows that if you can talk through your situation with a real person they can understand it better.

That's brilliant James123.

Well done for taking this on and getting a great result.

Excellent. I think it is probably easier and more cost-effective for the bank just to refund small amounts like this rather than the hassle of dealing with someone making a complaint. Well done for making this happen.