Bank Charges Financial Hardship Disussion

techspec

The FOS have told me that the Financial Hardship rule does not mean banks have to consider the case. It just has to be helpful and sympathetic to your needs, and help prevent further difficulties.

This could be in the form an overdraft increase, loan, lower repayments etc. They should also consider stopping further charges. The bank may make a partial offer, but this in unlikely.

In other words, i have wasted 12 months arguing for financial hardship. Although proven, the bank has refused to consider the case, until after the test case is resolved. I have rejected any sugesstion of lowering the monthly repayments, as this may have an affect on the credit rating and currently good standing with the bank.

I didn't want help, I just wanted the money back!

techspec

borgbaiter wrote: »

Whether you think anything has changed isnt really the point. from posts here and on other sites hardship cases are being offered refunds (between 50 and 70%) on bank charges. This to my mind is the important bit not the words of the FSA waiver.


Borgbaiter

Where can i check this. I have cancelled an hardship case, as the FOS told me there would be no offer from the bank, just help with debt.

techspec

kgeoghegan wrote: »

I think the information on hardship cases on the site is misleading. It states there is a 'hardship case' exemption to the (FSA) hold on reclaiming. In fact there is no exemption. I have read through most of the blurb from the FSA and I can't find any reference to any exemption. What it used to say was that banks must still deal with complaints from people in financial hardship under the Banking Code, which is what the banks have always done anyway, so no change there. There is no mention of the banks having to deal specifically with bank charge complaints.

The new waiver changes nothing, in fact. It states:

"…the firm must ensure a fair, consistent and intelligent filtering of new complaints in order to identify relevant charges complaints from complainants who claim to be in financial difficulty and then assess whether that claim is justified…"

To me that is only saying that the banks have a duty to separate bank charge complaints from people in financial difficulty and then put aside the bank charge complaints and then assess the financial hardship cases separately. There is no compulsion for the banks to even discuss bank charges.

If the FSA hardship 'exemption' meant anything, then surely the FOS would ask the courts to allow cases where financial hardship is a factor, as indeed they ought to in any case?

What you have just said, is exactly what the FOS confirmed to me today. The banks have no obligation to handle charges complaints, even under the hardship rule, until the test case is over.

Rumpole_Bailey_2

I started my claim in May last year, I managed to get it to court but the stay had been put in place by that time however, the court did progress my case and the lawyers for HSBC did not respond in time and the court issued judgement in my favour:j , The lawyers asked for the judgement to be set aside until after the test case stating they had not responded to the court due to the amount of work they had and this had "slipped through", the judge set the judgement aside :mad: , Until 28 days after the initial findings not including appeals :j .
I have written to my bank stating that I fit the waiver criteria and as I have a judgement I will return to court if I hear nothing in 7 days. We are now on day 3, I thought this would be easy as I believe the Judge would now find in my favour and enforce the judgement but these posts are making me nervous now.

I will keep you informed of progress, I have a judgement in my favour, I fit the financial hardship criteria, seconds out, round 3!

CHOR7ON_2

At first when I read about contacting your bank to claim financial hardship I first thought that due to my current circumstances of being out of work it might just speed up my claim, but from reading through people's stories I'm starting to question if it is worth drafting a letter to my bank, the Halifax to explain my situation.

I helped someone in my family get £9000 back from their bank last year. :T However, I submitted my reclaim in April this year. I've sent 3 letters using the templates on this website. The last response stating my claim is waiting for a decision from the courts. Like many others I wait for news from this site on any developments.

I really don't know if it will make any difference and speed up the process for me. Please can anyone help me. I'm not sure whether to do it or sit and wait like many others.

Rumpole_Bailey_2

From reading the above the banks seem to be hiding in what appears to be a grey area. My suggestion would be to forward all negative correspondence regarding hardship cases to the FSA who have their own stay in place. If we can convince them that the banks are still being unfair then maybe they will remove the stay? Who knows, the impression is that the banks know people are representing themselves and so are assuming that they won't push too hard. Let's get the FSA back on side!!

shouldnobeta

Hi Everyone,

I wrote to Lloydstsb asking for refund of charges (almost £4000!) :eek: just before the waiver. I think I might now be classed as a hardship case - drop in income, bounced cheques, living on cc's etc. but I know lloydstsb are notoriously difficult to say the least. Have phoned them and they just keep quoting T & Cs or telling me to contact CCCS - which I am in the process of doing. Anyway I am going to give it a go so does anyone have any experience of this with lloyds and what is the address I actually write to.

Thanks

pauline123

Well My partner was diagnosed last year with Hodgkin's lymphoma (cancer of Lymphatic system) he had to work in between chemo etc, because of our financial situation. When he did go off sick, His employer would not pay SSP Due ,had to involve inland revenue still having problems getting money each month. I am behind on mortgage, have been summons for council tax, water rates my credit card and the Lloyd's TSB, still will not entertain my financial difficulties

Phoenixx73

Has anyone had any joy claiming hardship with Abbey? and if so could you please outline your tactics here?

I believe that I might qualify for hardship status as I have been on Incapacity benefit for longer than the charges I am claiming for.. I know that in intself is not enough to claim but my partner is working 50 hours a week and we are having to survive on loans from places like Provident because her wage only just covers the rent each month. The tax Credits cover nearly everything else, but having 4 young children under 7 there is ALWAYS some kind of emergency need which tips us back into the red again. Our 4th child was born in FEB during the reign of the current waver, We have all the usual claims in, Housing benefit (which we are not entitled due to my partners earnings) a pending DLA claim for my 3 year old daughter who has difficulties and requires additional expense as a result, but no result there yet (going to appeal tribunal next month)

My question is... Apart from the Abbey one at the start of my post, Would I actually qualify for financial hardship?

flora689

I received a letter from First Direct stating on my yearly overdraft review, they were taking it from £1600 to £850, which obviously i couldnt afford to pay back in 2 weeks as i always use my full limit in parts of the month. So, this is when i decided to pursue the financial difficulty route. I rang them on the 11th of this month and said that i wanted my case looked at straight away, with regard to this.

They obviously passed me round a bit, then did a financial statement over the phone, said that yes there wasnt much left to live on and that i would have to agree a monthly amount to pay off my overdraft, then that i should take out a loan at 6% interest to cover my reduced overdraft, to which i pointed out i had taken advice (which i hadnt) and been strongly advised against that as it would create an extra monthly payment and put me in a worse off situation. I was then told if i didnt sort an agreement out there and then, in a weeks time my bank account would be closed, i would have nowhere to pay my wage in to and be caused all sorts of troubles.

I replied that i had two weeks and would wait the call back in the next two days that the other department would give me about my financial diffuculty case before making any decisions. Funnily enough two days later i had a letter from the bank saying it would pay £930 into my bank account and then lower my overdraft to the £850....i had only asked for £670 worth of charges, i will look into this but think they have also paid back all the charges i have been charged since my original letter 9 months ago.

Good Job i didnt take the advice of the 6% loan, i couldnt imagine what trouble that would have led to !