Bank Charges Financial Hardship Disussion

[Deleted User]

I have a hardship reclaim with the FOS. Today they said the bank had offered £40 out of the £100 I've asked for. They asked me to either accept or reject and if rejecting I must say why.

Surely rejecting it is the sensible option since the bank must pay back the whole amount - is this how it'll work, or might it go against me in rejecting this 'goodwill' offer now?

natweststaffmember

woodymeg wrote: »

hi think im going to ring them this morning befor bailiff turns up, not gone be a good day!!!!
ha no dont watch that program always on here reading stories.
how come the other banks seem to be paying out quite easily and the halifax dont!!!!
will let you know how it goes not that I hold out much hope

I can't comment on an individual bank but merely say that things ARE being done and it does take time which is difficult when you are impatient for things to happen(I know I am).

natweststaffmember

urbankoala wrote: »

I have a hardship reclaim with the FOS. Today they said the bank had offered £40 out of the £100 I've asked for. They asked me to either accept or reject and if rejecting I must say why.

Surely rejecting it is the sensible option since the bank must pay back the whole amount - is this how it'll work, or might it go against me in rejecting this 'goodwill' offer now?

They don't have to pay back the whole amount under the FSA Waiver on Bank charges but they do have to tell you why they have refunded it.
The question is when the hardship began and how the charges have affected your priority debt arrears. Argue that point and they may increase, if you don't then the FOS are unlikely to increase it.

natweststaffmember

dannynixon wrote: »

Hi, I have tried to find the answer to my question in this thread butseeing though there are close to 1500 posts, I couldn't lol.

Just about to take the plunge and claim back bank charges. After £200 of charges in the last 6 weeks!!!

Anyways, someone mentioned something about financial hardship etc and not having to wait in the queue. Kinda like a queue jump pass. I have today registered for a Debt Management Plan. Would this be classed as financial hardship? In essence I will be better off with money with having a lower payment to make each month but otherwise, I am still on a debt scheme so I presum I would be classed as 'financial hardship'

Thanks,

By the way, is there a seperate letter? (I have looked again but no avail, sorry!)

Ok, the DMP kinda has the opposite affect because as your payments are lower then your disposable income is more, so to speak and therefore is not necessarily financial hardship. Personally, you can ask but they may say no.
http://www.moneysavingexpert.com/reclaim/bank-charges-hardship
The above is the guide.

Any credit card charges or PPI to reclaim?

natweststaffmember

NAS7 wrote: »

As a self employed person, working on projects, my income varies considerably from month to month and prior to 2007, I had incurred £7,011.45 excessive bank charges which I decided to reclaim from the Abbey. I used the template letters provided by MSE but immediately fell into the OFT Test case so no progress. In May 2009, I found myself without work so applied under the hardship provision and have just received £431.45 which has put my account back within its limits. It was so because of bank charges!

The letter states that my claim still remains on hold pending the outcome of the OFT test case.

I feel this is a partial win so was worth doing BUT banks are getting around the Hardship rules.

If you can argue that their reasoning is wrong then the FOS or even the bank may increase their offer.

natweststaffmember

amandamin wrote: »

i have applyed to norwich and peterborough under the financial hardship rule as i was made bankrupt last year, i filled out their income and outgoings form and they have said i have plenty of income to cover the basic living cost although when i filled out the form i was spending more than i earned, what is the next step. where do i stand??

If the account is part of your bankruptcy then I am sorry to say that you cannot reclaim the charges since any reclaimed would go to the OR to distribute amongst your creditors

[Deleted User]

natweststaffmember wrote: »

They don't have to pay back the whole amount under the FSA Waiver on Bank charges but they do have to tell you why they have refunded it.
The question is when the hardship began and how the charges have affected your priority debt arrears. Argue that point and they may increase, if you don't then the FOS are unlikely to increase it.

Thanks

The FOS haven't actually decided on the issue, they said they first like to mediate between the parties. If I reject this 'goodwill offer' (no other reason given) would it not go to be decided on by a case worker as if there was no waiver in place and thus the whole amount refunded? The article is not clear.

natweststaffmember

urbankoala wrote: »

Thanks

The FOS haven't actually decided on the issue, they said they first like to mediate between the parties. If I reject this 'goodwill offer' (no other reason given) would it not go to be decided on by a case worker as if there was no waiver in place and thus the whole amount refunded? The article is not clear.

I don't agree with anyone rejecting offers whatsoever. Try and negotiate by all means but the true sense of financial hardship is that it is made to alleviate your situation and rejecting an amount that does help does not help you in any way and kinda defeats the whole object of the waiver. However, be aware that under the Waiver the bank doesn't have to refund even 1p of any claim.

[Deleted User]

natweststaffmember wrote: »

I don't agree with anyone rejecting offers whatsoever. Try and negotiate by all means but the true sense of financial hardship is that it is made to alleviate your situation and rejecting an amount that does help does not help you in any way and kinda defeats the whole object of the waiver. However, be aware that under the Waiver the bank doesn't have to refund even 1p of any claim.

Yes I understand the bank doesn't have to do anything except consider the circumstances but I thought the FOS caseworker would agree that the charges are unfair and thus result in the entire amount being awarded?

However if you're saying this isn't what happens then the next step will be to negotiate with them to meet half-way without prejudice to developments in the test case (though the waiver covers that anyway).

natweststaffmember

urbankoala wrote: »

Yes I understand the bank doesn't have to do anything except consider the circumstances but I thought the FOS caseworker would agree that the charges are unfair and thus result in the entire amount being awarded?
It isn't. Their job is mediation and to make sure that the bank have made a reasonable decision. Since the Case is in the House of Lords their job is NOT to determine the lawfulness/fairness of the charges but whether the way they have dealt with your case was fair(there is a huge difference).
However if you're saying this isn't what happens then the next step will be to negotiate with them to meet half-way without prejudice to developments in the test case (though the waiver covers that anyway).

I would say that if they have issued you with a financial closure letter, that will include WHY they have only offered £40.00 rather than more. It is their argument that you have to put forward to the FOS ie the bank is wrong on point 1 because of x y and z(and the lawfulness of the charges is NOT relevant to why they are wrong).