Mental Health & Bank Charges.

Gerald1979 · 18 October 2016 at 12:50PM

Hello, new member here.
Basically, I'm looking into reclaiming bank charges with HSBC & Co-op, potentially going back to 1999.
I was diagnosed with bipolar disorder & depression and anxiety about 18 months ago & have been put on long term sick.
One of the characteristics of bipolar is impulsive spending & poor money management.
I've incurred a lot of charges over the years with both banks. I currently owe the Co-op around £1200 but this is frozen for about another nine months.

My question is, would my diagnosis of bipolar count in my favour in trying to reclaim charges?
If I get anything, it'll go to paying my debt to the Co-op firstly then to a savinhs account for my daughter.

Thanks in advance for any suggestions.

Stevie_Palimo · 18 October 2016 at 12:58PM

If there is any redress due it will always be used first and foremost to cover anything that you owe the bank, If there is anything left thereafter then they will send this to you.

You just need to write in and ask about them looking at bank charges and fee's, I do not believe that mentioning any illness would effect the outcome here.

[Deleted User] · 18 October 2016 at 2:06PM

Gerald1979 wrote: »

My question is, would my diagnosis of bipolar count in my favour in trying to reclaim charges?

Unfortunately, historical bank charges are not somehow reclaimable simply because overspending is a symptom of your illness.

However, if you are in current financial hardship the Bank may decide to refund some recent charges (typically the last six months), but your mental condition will have no bearing on that I'm afraid.

From what you say about Co-OP freezing your debt, it sounds as though you are already in receipt of measures to alleviate financial hardship...

Stevie_Palimo wrote: »

If there is any redress due

No redress is "due". The Banks won their Court case about charges in 2009.

dunstonh · 18 October 2016 at 4:30PM

Basically, I'm looking into reclaiming bank charges with HSBC & Co-op, potentially going back to 1999.

On what basis are you trying to do this?
Since 2009, after the banks won the charges court case, they now only consider goodwill cases with current customers who are in current financial hardship.

You may meet financial hardship criteria with your current bank but not the other if you dont bank with them any more. Mental Health does not mean they will refund. They will likely look at your situation more closely and be mindful of the issues you suffer. However, that is only from diagnosis 18 months ago.

Give it a try and remember not to use phrases like unfair or not justified. Focus on your hardship and how its affecting you.

magpiecottage · 19 October 2016 at 1:26PM

I have had some experience of dealing with complaints involving mental incapacity.

What I have found is that if the financial institution ought to have spotted that the individual was not capable of making an informed and balanced decision, then it will uphold the complaint. An example was when a bank gave a loan to somebody but the manager of a local electrical store (think an astronomical object or Indian food) had decided not to grant him a credit the same day and was prepared to confirm this.

On the other hand, in another case, a lady was diagnosed with dementia some four years after taking out a loan. A complaint was put in on her behalf saying the adviser should have realised she was not of capacity and refused to arrange the loan.

The ombudsman concluded that, since no clinician had recognised the symptoms at the time, it was unreasonable to suppose that a financial adviser would have done so.

In your case, the time between the first event and diagnosis is not four years but sixteen.

With that in mind, I think your complaint unlikely to succeed.

Mental Health & Bank Charges.

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