A 95p overdraft ended up costing a student nearly £250 after her building society kept piling up the charges.

Rosanna Cobb, a student at Leeds University, only realised she had racked up the charges when she arrived home from university to a stack of letters from Nationwide. The bank had not tried to contact her in any other way, while the charges mounted up.

But after Twickenham's MP, Dr Vince Cable, got involved, the bank coughed up the charges, putting them back where they came from.

Rosanna, 20, said: "I used a cheque which took me about 95p overdrawn.

"I am at university so cannot check my account regularly - but £20 in charges had been coming out of my account every month for about a year.

"I didn't even think I had used it.

"When I finally discovered the letters, I didn't really understand why this had been happening - but was not pleased. I just wanted the money back.

"I think it's quite sneaky of the building society.

"I certainly won't be banking with them again."

Dr Cable said: "Like most bank overdraft charges these had no legal basis.

"The banks hope to frighten and intimidate their customers into paying up.

"Once we stood up to them and threatened the bank with legal action they capitulated.

"The level of incompetence in the bank was unbelievable. When I wrote on Rosanna's behalf as the MP, I even received two letters written on the basis that it was my account.

"The lesson is; if banks are overcharging you, stick up for your rights as a consumer. Don't capitulate."

A spokesman for Nationwide said they could not discuss individual circumstances and added: "We do not have a blanket policy that says yes or no to any refunds.

"Customers should contact us and we will investigate each one on a case by case basis.

"We do have to levy charges on any account that breaches its terms and conditions.

"Clearly in this case it was right we refunded this customer because it was not a huge overspend on her part.

"We do advise all customers to check their statements regularly."