Bank Charges Financial Hardship Disussion

rocjescai

Hi thanks for your help.I think Ill wait for a week or so & then contact them again ,as I can contact the guy that I spoke to yesterday.Yes I have sent them all the information regarding arrears.Hopefully Ill be back on soon with a result!!!!

jonpnash

As with the person quoted, co-op simply tell you to read the FSA annex. Which correctly does not say they have to deal with the case by paying the unfair charges when you are under financial difficulty. Read it and you will see, it simply says they have to deal with you sympathetically. Which they don't. Just pile on more charges. In fact smile (coop) does nothing, in the way of sympathy. Worst, when I won my PPI they managed to lose my letter of acceptance twice and took weeks to pay me.
I have taken my case to the FSO and they take the same stance. Saying there is nothing they can do. So what a massive waste of time the FSO have been. I spoke to one person at the FSO who seemed completely unaware of the bank charges situation, so I think it may depend on the quality of the adjudicator you get to handle you case. Mine seems to be regurgating the story I heard from the bank i.e. there is nothing they have to do. So the info on MMSE seems a bit missleading. But then again you get a different story depending whome you speak to in the FSO
Just as an aside to prove how unfair the UK banking system has been. I worked in Belgium for 4 years. There I did not give me one single overdraft fee.... because they simply don't allow you to.. simple. So is not my behaviour.. but the bank system that gets you, and they know it. The profit from the people who can least afford it.
Furthermore, the raw statistics on the nature of these charges on my account is interesting reading. 16 cases the charges for unauthorised overdraft, for example, were solely caused by the charges applied for the last month, not from unauthorised spending. Nice one. So they authorised spending on themselves!!! to which they gained!! Sometimes there were long periods where the account was overdrawn by less than a few pounds yet incurring daily charges with no attempt to ring, email or contact by post to inform me of these accumulating charges. I was working in belgium at time, so hence not checking my account every day (these were stopped a few years ago, as probably an admission of how unfair they were). So an over the agreed overdraft limit of a few pounds incurred charges of in some cases of many hundreds of pounds. Another incident involved reducing the overdraft limit every month, further compounding the way the overdraft charges were applied, so that every month charges carried over to the next month caused the same incidental charges not related to spending or account activity. Most frustrating of all is that in almost all cases the alternative account (since we had two joined current accounts), would at have more than sufficient funds to cover the deficit in the over the overdraft limit account.
And to think my children will be paying taxes to bail out the banks for the rest of there lives!! urr

rocjescai wrote: »

Hi,Im new to this forum but have been watching for a long time!!I applied to the co-op for all my bank charges to be refunded.I recieved a phone call yesterday from my case worker ,who after speaking to me for a while decided that I was in financial hardship.He said that if I couldnt meet future DD'S that they could offer me a temporary overdraft or temporarily suspend my DD'S!But then he said that they wouldnt be giving out any refunds until the case was resolved.So then I said could I go to the FOS,he then said I could escalate my case to another department who would decide if I should get a refund.He didnt give a time scale & I am a bit confused about my next move,should I wait for contact from them?tHANKS!!!

esmerellda

19th March Letter from FSA to Firms - they need reminding of this

Took a freedom of information request to get it released but the firms should be complying.

FSA wrote:

Minimum Standards for handling complaints where financial difficulty is claimed

where a complaint about bank charges also contains an additionl element where the customer is claiming or indicating they are experiencing financial difficulties we note that firms ( either individually or through the BbA ) have confirmed they will adopt minimum standards for handling such cases (the annex ) These minimum standards were drawn up in response to findings from our ongoing waiver monitioring visis to firms which have indicated inconsistencies in the treatment of customers claiming financial difficulties and identified some failings in the sypathetic and positive treatment of customers in financial difficulty.

Our waiver monitoring work is continuing and will incorporate assessments of the extent to which a firms approach to handling complaints where financial difficulty is claimed is in line with these minimum standrads.

If you have any questions about this letter please contact either [FSA staff member] or [FSA staff member]
Quote:
Originally Posted by FSA letter 19th March 2009 to firms

---

ANNEX - FINANCIAL DIFFICULTY

minimum standards for handling complaints where financial difficulty (FD) is claimed

I)firms to use their own records where available (eg. account activity and existing borrowing), to consider intially if the customer might be experiencing FD

only when this cannot be determined will it be appropriate for a firm to gather more information ie. issue an Income Expenditure form (''IE form'') FSA accepts that in a majority of cases it will be necessary to issue an IE form in particular before considering/rejecting a claim of FD.
nb. firms are also refered to 14.4 and 14.5 of guidance to the banking code.

II)if an IE form is issued the firm to provide a reasonable period of time before issuing a closure letter to the customer which should clearly explain the reason why the firm has not accepted the customer is not in FD and that the firm will reopen the case should the customer subsequently return the IE form

III)where an IE form is returned it is to be reviewed by adequately trained and experienced staff to assess if the customermight be experiencing fd and the extent of the problem. staff should be able to interpret information to make an informed judgement which is clearly documented and in line with internal policy and guidance (including considering if a customer may have under declaared their outgoings) an appropriate course of action should be taken dependant on the extent of the problem IE. some customers may only require guidance on what to do, others may require more immediate action.

IV) any correspondance issued to the customer that provides detail of the decision taken by the firm must be compliant with disp requirements eg. it should clearly explain the outcome of the investigation and the rationale for the decision and provide details of how to investigate the complaint if the customer is not happy with how it has been resolved. (this included cases rejected because the customer did not return the ie form)

V) firms to provide a range of measures to support customers and to treat them positively and sympathetically
nb2)firms are also refered to sections 14.2 and 14.3 of the guidance to the banking code.
these might include: help and guidance about dealing with fd and avoiding charges; suspending collections and recovery activity; suspending accrual of further interest and charges; consideration of a refund of charges, in particular where the charges may have added to the FD during, or immediately before, the period of FD. The rationale for why a particular level of refund has been given should be documented and clearly explained to the complainant.


The minimum standards are not handbook guidance but rather update firms on the findings of good practise from our thematic review of the handing of unauthorised overdraft complaints.

The minimum standards do not purport to define the suitability standards for unathorised overdraft charge complaint handling. Firms should have regard to the minimum stndards in deciding what action they need to take to complay with the FSA handbook and the waiver. There may be serval ways of complying with the regulatory requirement and folowing guidance or other materials we publish such as the letter issued on 13th november 2008 is only one approach. for further information please refer to the section on fsa guidance and supporting materials in our enforcement guide paras 2.22 to 2.27 ( FSA Handbook - Full Handbook ) actually __> http://fsahandbook.info/FSA/extra/5149.pdf

A firms senior management remain responsible for establishing and implenmenting effective controls over unauthorised overdraft charge complaint handling..

natweststaffmember

jonpnash wrote: »

As with the person quoted, co-op simply tell you to read the FSA annex. Which correctly does not say they have to deal with the case by paying the unfair charges when you are under financial difficulty. Read it and you will see, it simply says they have to deal with you sympathetically. Which they don't. Just pile on more charges. In fact smile (coop) does nothing, in the way of sympathy. Worst, when I won my PPI they managed to lose my letter of acceptance twice and took weeks to pay me.
I have taken my case to the FSO and they take the same stance. Saying there is nothing they can do. So what a massive waste of time the FSO have been. I spoke to one person at the FSO who seemed completely unaware of the bank charges situation, so I think it may depend on the quality of the adjudicator you get to handle you case. Mine seems to be regurgating the story I heard from the bank i.e. there is nothing they have to do. So the info on MMSE seems a bit missleading. But then again you get a different story depending whome you speak to in the FSO
Just as an aside to prove how unfair the UK banking system has been. I worked in Belgium for 4 years. There I did not give me one single overdraft fee.... because they simply don't allow you to.. simple. So is not my behaviour.. but the bank system that gets you, and they know it. The profit from the people who can least afford it.
Furthermore, the raw statistics on the nature of these charges on my account is interesting reading. 16 cases the charges for unauthorised overdraft, for example, were solely caused by the charges applied for the last month, not from unauthorised spending. Nice one. So they authorised spending on themselves!!! to which they gained!! Sometimes there were long periods where the account was overdrawn by less than a few pounds yet incurring daily charges with no attempt to ring, email or contact by post to inform me of these accumulating charges. I was working in belgium at time, so hence not checking my account every day (these were stopped a few years ago, as probably an admission of how unfair they were). So an over the agreed overdraft limit of a few pounds incurred charges of in some cases of many hundreds of pounds. Another incident involved reducing the overdraft limit every month, further compounding the way the overdraft charges were applied, so that every month charges carried over to the next month caused the same incidental charges not related to spending or account activity. Most frustrating of all is that in almost all cases the alternative account (since we had two joined current accounts), would at have more than sufficient funds to cover the deficit in the over the overdraft limit account.
And to think my children will be paying taxes to bail out the banks for the rest of there lives!! urr

Where are your priority debts(rent/mortgage, council tax, utilities)?
Since you would have had more than sufficient in the other joint account, you went to the FOS on the face of what you have written without the basics

"For the purposes of this direction, a complainant is considered to be in financial difficulty when his income is insufficient to cover reasonable living expenses and meet financial commitments as they become due;"
That is at 13.19 of the FSA Waiver on Bank Charges.

sophie21

Hi there all
I was lookiing for some info. I sent away a letter to Halifax as in financial difficulty. Got expenditure form and returned. Now received letter saying i will be contaced by money matters team to help me 'manage my money better'. No mention of money back. Can i now go to FO?
thanks

kitsisec

alcrawford wrote: »

I made an initial claim (HSBC) in July 2007 dated before the original FSA ruling. It was still, however, put on hold quoting FSA as was not dealt with until after the ruling.

I have today sent a letter requesting that my case be looked at again both under 'hardship' guidelines and the fact the original letter/claim was submitted before the original suspension of normality.

They'll also be getting a Debt Management Plan letter shortly so hopefully they will finally realise my financial situation!

I will update when I get a response...

Hi
Llloyds will also be getting debt management plan from me as well but they still say case on hold.

natweststaffmember

sophie21 wrote: »

Hi there all
I was lookiing for some info. I sent away a letter to Halifax as in financial difficulty. Got expenditure form and returned. Now received letter saying i will be contaced by money matters team to help me 'manage my money better'. No mention of money back. Can i now go to FO?
thanks

Do you have priority debt arrears(mortgage/rent, council tax, utilties)?

Gavhough

Hi. Recently recieved a decision from Natwest stating that i do not meet there financial hardship criteria. I have sent them proof of my council tax arrears, creditcard late payments, and statements showing cash withdrawals. but they say no. Any ideas on what to do now? they owe me nearly £100 which sure would help things.

THanks Guys

natweststaffmember

Gavhough wrote: »

Hi. Recently recieved a decision from Natwest stating that i do not meet there financial hardship criteria. I have sent them proof of my council tax arrears, creditcard late payments, and statements showing cash withdrawals. but they say no. Any ideas on what to do now? they owe me nearly £100 which sure would help things.

THanks Guys

Can you clarify, they owe you £100 since July 2001?

How much are you in arrears with council tax?

Gavhough

natweststaffmember wrote: »

Can you clarify, they owe you £100 since July 2001?

How much are you in arrears with council tax?

Sorry that should be £1000!

i am currently £145 in arrears with council tax and getting red letters!