I just thought I would update you all on the latest. Having taken the issues with my current account to the financial ombudsman in regard to possible compensation (but frankly more as a punishment) we have had a result. Instead of the 'we will remove the charges and default as a goodwill gesture' that I managed to get, they have managed to get an entirly different - it is all our fault and we did not handle our error well and we will offer you £200 (afer inital £50 offer).

Needless to say I've accepted. That's one more kitchen unit paid for - I might have a full cupboard with doors and everything soon...

Thanks for spurring me on! Was worth it in the end!