Bank Charges Financial Hardship Disussion

sizzy_2

My sister has just called Abbey as she has about £1200 due in Bank charges if the courts rule they are unfair - anyway I told her to get on the phone as she is on incapacity benefit and ask about the financial hardship route - if it wasnt for me paying her credit card the stress of it all was driving her to an early grave!

Anyway they have said that because its gone to court they are no longer dealing with cases ((I know this but was asking for the financial hardship route to be explored))

They have offered her £60 but she doesnt know what for and said she will have to wait possibly another year.

Can anyone please clarify - I know the case has gone to court and I know a decision is not expected for a long time but I thought new information given last week that if you were under financial hardship you could ask for your claim to be processed.?

juliezz

i have put in a reclaim for bank charges and like everyone else is awaiting the result, because of the mess that i owe the bank i cancelled all d.d etc, but they keep charging on my charges and my debt is growing. went to bank and they wont acceppt what i wanted to pay and now im getting letters saying they will transfer my debt to collection agency. when i try phoning regarding the letters they just want a ridiculous amount back and there is no way i can afford it , i just started work p.t recently but am still struggling and very stressed about it. what can i do , can they send me to collections or do they allso have to await result of the case , please please some advice. its the abbey and thy wont freeze account or deal with hardship

balsh

was there any clarification on the hearing regarding the hardship route?

what is classed as hardship?

can the banks make any offer or do they have to make a certain % of the total charges?

Sol00

sizzy wrote: »

My sister has just called Abbey as she has about £1200 due in Bank charges if the courts rule they are unfair - anyway I told her to get on the phone as she is on incapacity benefit and ask about the financial hardship route - if it wasnt for me paying her credit card the stress of it all was driving her to an early grave!

Anyway they have said that because its gone to court they are no longer dealing with cases ((I know this but was asking for the financial hardship route to be explored))

They have offered her £60 but she doesnt know what for and said she will have to wait possibly another year.

Can anyone please clarify - I know the case has gone to court and I know a decision is not expected for a long time but I thought new information given last week that if you were under financial hardship you could ask for your claim to be processed.?

You're best to put it in writing rather than phoning about it as some staff either may not know the correct procedure, or not bother.

The templates are on the website.

Premier_2

balsh wrote: »

was there any clarification on the hearing regarding the hardship route?

what is classed as hardship?

can the banks make any offer or do they have to make a certain % of the total charges?

If you have a case of genuine financial difficulty, your bank or building society must still deal with your complaint. This may involve – or not – the repayment of charges. See the Banking Code for how they can help. If you're not happy with the firm's response to your complaint, you can take it to the Ombudsman, who will consider whether your complaint can be dealt with before the test case process is resolved.

http://www.moneymadeclear.fsa.gov.uk/news/product/unauthorised_overdraft_charges_test_case.html

Of the many millions of bank account customers, 6908 have been identified as being classed in financial hardship. Of those 5713 are still expected to pay 100% of the fees billed.
http://www.fsa.gov.uk/pubs/foi/foi_0814.pdf

emmagrey

i wish i met the hardship criteria so my claim could be processed, i mean, im thankful i am in a good position obviously, its just the hold is so flustrating!

Hillsy19

Is there a template letter i can get for claiming hardship?

Im owed £1000 (roughly) from nationwide and currently unemployed.

Any help is greatly appreciated.

Nathan_Spleen

This is the relevant extract from the FSA's waiver conditions that define hardship.

http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf







Annex 2 – Dealing with complainants in financial difficulty

1. The firm will be sympathetic and positive when considering any financial difficulties claimed by the complainant. Firms will not subject a complainant to harassment or undue pressure when discussing their problems.

2. In making an assessment of financial difficulty the firm will take into account:

a. evidence of changes in lifestyle, including loss of employment; disability; serious illness; imprisonment; relationship breakdown; death of a partner; starting a lower paid job; parental/carer leave; and starting full-time education;

b. evidence of the following events:

1. 1. 1. items repeatedly being returned unpaid due to lack of available funds;
      2. failing to make loan repayments or other commitments;
      3. discontinuation of regular credits;
      4. notification of some form of insolvency or court proceedings;
      5. regular requests for increased borrowing or repeated rescheduling of debts;
      6. making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
      7. repeatedly exceeding a credit card or overdraft limit without agreement (and, in this regard, where a complainant has incurred over £500 in unauthorised overdraft charges in the previous 12 months, that is to be treated as indicative of financial difficulty).

3. If during the handling of the complaint the firm becomes aware (including by notification from the complainant) that the complainant may be in, or heading towards financial difficulties, the firm will contact the complainant to outline their approach to financial difficulty cases and to encourage the customer to contact the firm if the customer is worried about their position. The firm will also provide signposts to sources of free, independent money advice.

4. The firm will make available to complainants straightforward information in plain English on the firm’s procedures and systems for dealing with customers in financial difficulty.

5. If it becomes clear to the firm that the complainant needs specialist assistance, the complainant will be referred promptly to a specialist team that deals with customers in financial difficulties, if one exists. The firm will give a phone number on all communications that will put the customer in contact with a named person or a team dedicated to dealing with cases of financial difficulty.

6. Where the firm does not have sufficient evidence to assess whether or not the complainant is in fact in financial difficulty, the firm will seek such further relevant information as is reasonably required to make that assessment. In the event that the firm reasonably requires relevant information to be provided by the complainant and the complainant does not provide the requested information within a reasonable period of time, the firm shall not be obliged to treat such a complainant as being in financial difficulty.

The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS, United Kingdom Telephone +44 (0)20 7066 1000 Fax +44 (0)20 7066 1099 Registered as a Limited Company in England and Wales No 1920623. Registered office as above

LinziLou_2

I was recently toldby Lloyds TSB that i was going to be classed as a hardship case following a recent change of jobs and therefore a delay in salary payment thus resulting in bank charges...however i was told i would be classes as hardship and have today been told that yea i may be classed as hardship but i am still on hold regardless of what i think the fsa say about hardship cases, the lady on the phone did say that she would send me out an income and expenditure form never the less and i was to fill this in and send it back...so were do i gofrom here?? i have already filled my complaint with the FOS and got a letter of receipt from them on the 21st july 08 acknowledging the info i sent them and saying they would be in touch. Does anyone know how long it normally takes..im sur ei am understanding it correct in that hardship cases are meant to be not on hold as such??

esmerellda

I would recommend anyone in hardship who meets the new guidelines (Nathan posted them above a couple posts) recontacts their banks legal departments now and ask to be reconsidered as hardship under the new guidelines.

Most likely you will be asked to write in, so just lay out your case and why you meet hardship rules, if you can send in your Income/Expenditure sheet too.

A few people are starting to see 50% plus offers coming in. Bear in mind they cannot settle in ''full and final'' so you will be able to go back for the rest after the test case(should it go in our favour)

If you are sucessful please let us know and remember to let the court or the FOS know your claim has been partially settled.


Linzilou - give them a call see what progress they have made - you have nothing to lose.