On page 4 it says:

Terms and Conditions for NatWest personal Current Accounts

B All Accounts
….. You must always ensure that you have enough cleared money in your account by 3:30pm on the working weekday before: you give out cheques
standing orders or direct debits are due to be paid
you withdraw money from a cash machine
you use switch or solo
you request us to make payments by electronic means.

If sufficient cleared money is not in your account by 3:30pm on the previous working weekday, then your cheques, standing order, direct debits, cash machine, switch, soloor other transactions may not be paid. …

Fees
Full details of our fees, and when they may be applied, are given in ‘A Guide to Personal Current Account Fees’.

Page 5 it says:

C Overdrawn Account
Overdrafts are only available for current account customers if you … have arranged this first with your Branch….. If you do not have an arrangement, we may charge you an extra fee and interest at our rate for unarranged borrowing according to our published tariff. If your account does not have enough cleared money to cover an amount you want to take out we may:
refuse to let you take the money out; or
close the account.

The Leaflet “A Guide to Personal Current Account Fees” effectively forms part of these Terms and Conditions and says that in the event that sufficient cleared money is not in the account as described in B above, the result will be a charge.

The Claimant contends that these Terms require that, in the proper running of the Account, sufficient funds (including any agreed overdraft facility) must be maintained in the account to cover withdrawals or the result will be a charge. (It should be noted that this Condition applies even in cases over which the customer has no control, eg the paying of a Direct Debit where the payment date and amount are controlled by the payee or even in some circumstances by the bank itself.)

Further, the Claimant contends that, although these charges are referred to as “Fees”, the Terms and Conditions are a clear statement that a charge will be imposed if the customer breaks the requirement that sufficient funds be in the account on the previous working day to any withdrawal. The term itself sets out that the charge arises purely on the occurrence of the event and, as such, is a penalty or default charge rather than a fee for operating the account.