Bank Charges Financial Hardship Disussion

KaiserK

I'm not sure if anyone is in the same boat but I'd like some advice on my situation - I made my initial claim against HSBC in April 07 and started going through the small claims route before I got shut out by the stay imposed during the test case.

I was claiming JSA so in September I think it was I actually had a court date to argue the stay should be lifted for hardship. I prepared a good package thanks to the CAG website forums but HSBC sent a solicitor along to argue that if I was in hardship then I couldn't repay HSBC any money if the test case subsequently ruled in their favour. The judge thought this was sound reasoning and upheld the stay.

So now this new clarification comes along from FSA, but I don't see how it can help - surely the same argument would apply if I tried to go back to court a second time etc etc.

Any suggestions?

Edinburghlass_2

Update to Martin's article regarding financial hardship is here...

http://www.moneysavingexpert.com/reclaim/oft-bank-charges#hardship

KaiserK

That article doesn't mention what to do if you've already been to court to lift the stay and been unsuccessful. I don't understand why some people are now getting their claims settled by HSBC under hardship rules when my hardship was their stated argument in court for maintaining the stay on my case.

Edinburghlass_2

If the bank won't look at your claim as a financial hardship case then you can take it to the FO.

KaiserK

But HSBC sent a solicitor along to court to argue that if I was in hardship then I couldn't repay HSBC any money if the test case subsequently ruled in their favour. The judge thought this was sound reasoning and upheld the stay.

I'll contact the FO but how can they overrule the judge?

Edinburghlass_2

Have you contacted the bank since the waiver was put in place? If not thats what I would suggest first.

Q. I think the financial hardship guidelines apply to me, what should I do?
A. Contact your bank urgently and tell it that under the FSA’s waiver rules you believe you fit the financial hardship criteria and would like your case to be dealt with straight away. This applies whether you've already started your reclaim and it's on hold or if you haven't started it at all.

KaiserK

Yes I sent them a letter asking them again for a settlement (now under hardship rules) after that advice was posted here on MSE back in July 07 or whenever it was. All I got was a form to fill out, which didn't result in anything so I got a court date to apply to lift the stay. I went to court, HSBC sent a solicitor, we both argued our points but I lost BECAUSE they claimed my financial hardship would prevent me paying them back in the event that they won the test case.

Since HSBC are now making settlements again, would threatening going to the FO be worth trying before actually doing it?

Edinburghlass_2

I'm no lawyer and certainly no expert but I would send the bank off a new letter asking for your claim to be looked at under the new FSA guide lines regarding financial hardship and if they refuse on this occasion then take it to the FO.

edited to add link...

http://www.fsa.gov.uk/pages/Doing/Regulated/Notify/Waiver/pdf/disp_monthly.pdf

KaiserK

OK thanks. I'm still interested to hear if anyone else is in a similar position - as I understand it quite a few people went to court to lift their stays based on hardship but I believe everyone else failed as well, regardless of whether the bank actually sent a solicitor.

Is anyone else going to try again now the rules have been "clarified"?

Naturally I'll post with any updates in my case.

Penford

I'm loking for advice on this recent development. I was in financial hardship which is how I managed to amass nearly £2,000 of bank charges. I have since gotten myself out of such hardship but have, for example, lost the 'Right to Buy' my home as I was unable to keep up with my rent payments and various other household expenses. Do I have any chance of claiming back my bank charges under the new Hardhip rules?