Advice You - Finance

Unauthorised overdraft fees. These are three words that worry every bank customer. An unauthorised overdraft fee is the fee charged by a bank when custome

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

rs go over their overdraft limit.

These fees can be very steep, with some banks charging high premiums for customers who exceed an agreed overdraft limit

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

by as little as a few pence. A recent consumer report suggests that bank customers paid more than ?4 billion pounds in unauthorised overdraft fees in 200

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

4.

Scale Of Overdraft Fees

The BBC have reported that the seven major banks charge unauthorised overdraft fees of ?25 to ?38 pounds. Interest rates on t

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

he unauthorised amount can also be high. While some banks charge under 8% interest, others have interest rates that hover around the 30% level.

The banki

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

g industry has been slated for this practice by customers who feel they have been treated unfairly. The Office For Fair Trading has also criticised banks

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

for overcharging customers for unauthorised overdrafts. Late payment fees for credit cards have also been criticised. The OFT suggests that late payment f

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ees for credit cards should be no more than ?12 and should only cover the administration fee.

Getting A Refund

Consumers who feel they have been overcha

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

rged by their banks may be able to receive a refund if they go through a time consuming process.

First of all, consumers can use the Data Protection Act

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

to request details of all charges on their account over the past six years. Next, they need to inform the bank that they intend to sue in County Court to

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

et this money refunded.

Are Unauthorised Overdraft Fees Legal?

There is some question as to the legality of unauthorised overdraft charges. Penalty clau

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

ses (such as unauthorised overdraft charges) are illegal under breach of contract law. However, banks do have the right to claim damages from customers wh

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

o breach their contract with the bank. To avoid going to court every time, most banks write these charges into the contract. They are then able to raise t

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

hose charges at regular intervals.

The banks see the unauthorised overdraft fee as a fee for services rather than a penalty. This could alter the legal p

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

osition.

In many cases, it is the people who can least afford it who suffer these overdraft charges. This can become a cycle, with some people having to

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ay unauthorised overdraft fees month after month.

Help With Your Banking Rights

Consumers who want to find out more about their banking rights should ch

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

eck information from the Bank Action Group, a self-help organisation for banking customers. This organisation can guide consumers through the lengthy proc

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ess of recovering unauthorised overdraft fees from their bank.

Many organisations say that the banks should make it easier for consumers to see what char

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ges might be applied to their bank accounts. Until they do, consumers should read the fine print as the terms and conditions of each bank account contain

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

information about charge that might apply. Finally, when banks send variations of terms, it is useful to read these to see what new conditions might apply

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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