Hardship - advice please?

newyorklover

Sorry for starting a new thread...wasn't sure where to place my query. I've read about this so much my head hurts.

Tried to go down the hardship route with HBOS, following my original claim back in 2007 (like many people I was due to hear the week that the case went on hold). Am claiming circa £16k (eek) and over the last few months have been slipping further into hardship - debts mounting, creditors refusing reduced offers (well not refusing but ignoring letters), partner self-employed but off with serious back pain, and continuous charges. I wrote back to the bank at the beginning of February, listing all the reasons that I was in hardship (I met all the criteria listed by the FSA) and enclosing my expenditure/income sheet - although I earn a reasonable salary it nowhere near covers everything.

I called about 3 weeks ago to make sure that they had received my information and the girl confirmed that they did and that it was being processed. I called back on Monday and spoke to someone else in the customer relations department, who put me on hold to speak to my 'case manager' and came back and told me that she couldn't give me any details but my claim had been assessed and a letter with an offer was on it's way. Waited patiently in anticipation all week and came home from work this evening to find an offer of....£28!

Not sure what to do now - absolutely gutted! Any advice?

marshmallows

they have took £16k in charges and are offering you £28

Will21st

That's ridiculous.... surely they made a mistake somewhere?I just can't imagine they'd offer such a paltry sum for so many charges..:mad:

natweststaffmember

newyorklover wrote: »

Sorry for starting a new thread...wasn't sure where to place my query. I've read about this so much my head hurts.

Tried to go down the hardship route with HBOS, following my original claim back in 2007 (like many people I was due to hear the week that the case went on hold). Am claiming circa £16k (eek) and over the last few months have been slipping further into hardship - debts mounting, creditors refusing reduced offers (well not refusing but ignoring letters), partner self-employed but off with serious back pain, and continuous charges. I wrote back to the bank at the beginning of February, listing all the reasons that I was in hardship (I met all the criteria listed by the FSA) and enclosing my expenditure/income sheet - although I earn a reasonable salary it nowhere near covers everything.

I called about 3 weeks ago to make sure that they had received my information and the girl confirmed that they did and that it was being processed. I called back on Monday and spoke to someone else in the customer relations department, who put me on hold to speak to my 'case manager' and came back and told me that she couldn't give me any details but my claim had been assessed and a letter with an offer was on it's way. Waited patiently in anticipation all week and came home from work this evening to find an offer of....£28!

Not sure what to do now - absolutely gutted! Any advice?

Do you have priority debt arrears?

newyorklover

Yes they offered me £28.00 for £16000 of charges!! I couldn't believe it either!

They also said they would refund any charges I incur for the next 3 months (I also thought this was weird!). But I generally won't get any becasue we have cancelled all our direct debits and just pay everything manually since we can't afford any more charges.

As for priority debts - got £600 income tax bill, £1200 council tax (last years) and £1000 Scottish Power. No mortgage arrears - this is the one thing I've never missed. Everything else has gone to pot. Non-priority debts add up to about £13000 (7 separate debts) but they have all gone to debt collectors and I've tried to negotiate reduced payments - 2 have accepted, the rest have ignored letters.

Thanks for replies x

natweststaffmember

newyorklover wrote: »

Yes they offered me £28.00 for £16000 of charges!! I couldn't believe it either!

They also said they would refund any charges I incur for the next 3 months (I also thought this was weird!). But I generally won't get any becasue we have cancelled all our direct debits and just pay everything manually since we can't afford any more charges.

As for priority debts - got £600 income tax bill, £1200 council tax (last years) and £1000 Scottish Power. No mortgage arrears - this is the one thing I've never missed. Everything else has gone to pot. Non-priority debts add up to about £13000 (7 separate debts) but they have all gone to debt collectors and I've tried to negotiate reduced payments - 2 have accepted, the rest have ignored letters.

Thanks for replies x

Did they take an income and expenditure form from you? Did they ask to see evidence of arrears?

newyorklover

Yes they took an income expenditure sheet - but No, didn't ask for any evidence of arrears. I'd be more than happy to send this, as it did cross my mind that I could be making it all up for all they knew.

natweststaffmember

newyorklover wrote: »

Yes they took an income expenditure sheet - but No, didn't ask for any evidence of arrears. I'd be more than happy to send this, as it did cross my mind that I could be making it all up for all they knew.

The next thing is with regards to "priority debts". Most banks will only look at these specifically. It may be worth another letter letter explaining the Council Tax arrears--have they threatened court yet? And the Scottish power arrears £1000--again any threats of court yet?
Take copies of them and keep them with you. Ask them if they can be taken into consideration and if need be paid directly from your claim to the provider with appropriate receipts sent to you.

newyorklover

I will do that - but they were listed on my last expenditure sheet and they seem to have ignored them!
So do you think I should re-write to the bank with another income expenditure sheet but this time stress the priority debts even more (and enclose evidence of them)?

I wasn't sure at which point you take your claim to the FSA?

natweststaffmember

newyorklover wrote: »

I will do that - but they were listed on my last expenditure sheet and they seem to have ignored them!
So do you think I should re-write to the bank with another income expenditure sheet but this time stress the priority debts even more (and enclose evidence of them)?

I wasn't sure at which point you take your claim to the FSA?

I think you need to politely ask them ie from the letter making the £28 payment offer that you would like them to reconsider the amount based on the "priority debt" arrears and see if they will up their offer otherwise, FOS it is. The bank are stating they will not charge for unpaid items but as you said you cancelled them anyway

newyorklover

Thanks. I'll do that. I've heard that it often depends who actually reads and processes your letter, so fingers crossed I get somebody a bit more human