BOS: Charges + Withdrawing my overdraft + Getting a loan to cover my unrenewed limit?

Trilly

As posted in the main thread, I feel it's fairly specific to my situation but searching didn't produce much fruit on similar threads.

SUMMARY: My overdraft is up for renewal of £2,7500 on the 23rd.

My current renewal amount is £0. So I will be in debt to BOS.

I have a meeting on Friday lunchtime to discuss my situation, namely to get a loan in order to avoid falling into debt. The meeting is a BOS.

BOS replied to my overdraft charges letter under Financial Harship saying I am not in suffiencet hardship but including the 'Common Financial Statement'. I claimed over £2000, including £750 in the last 12 months.

Should I raise this in the meeting tmrw? Or just mention the problems I have with my overdraft charges

Received a letter last week stating I was not under sufficient hardship but including the form to out line my current expenditure.

The charges were of over £2000 including almost £750 in the last 12 months.

This arrived on the same day for another letter for an overdraft charge and also a letter stating that I owe £2,750 as my overdraft is now up for renewal.

I make almost exactly as much as I spend, give or take £50, with little extravagances. If I don't have an extra £50 or so it's due to overdraft charges or interest rates on those which puts me back into an unarranged overdraft limit.

For example: I purchased a much needed new pair of running shoes, got charged interest, returned them and didn't get a refund before another charge for my phone bill came out.

I owe Bank of Scotland £2,750 and their 'quick' throw at what new overdraft I could get is £0. Nothing.

I have a meeting with the bank on Friday lunchtime to see if I can arrange a loan to cover this so I do not fall into 'debt' with the bank, however I'm not too keen that I will be accepted.

Should I mention the overdraft charges?

If the bank paid back nearly £2000 I'm sure I could arrange a loan of less than £1000 and work under that for the foreseeable future.

My problem is that I don't know how helpful it is trying to take a loan out with people I owe money to whilst at the same time feel that they owe me £2000!

esmerellda

Okay the situation is this

You have an overdraft of £2,750

You write asking to reclaim your charges under Hardship - charges of £2000

The bank remove your overdraft leaving you with a debt of £2750

The bank want you to take a loan to pay, in the main part, THEIR CHARGES.

This a breach of the waiver and banking code, further indebting you when in hardship and a retalitory action to your claim. So we'll complain about that.

Don't take the loan.

Instead tell them you are moving your account elsewhere (open a basic account without an overdraft and start afresh). You are happy to repay the £750 - but over a period and at a rate you can afford. The other £2000 is fully in dispute and you expect them to put the debt on hold pending the outcome of the test case (don't forget you will be adding 8% PA interest to each charge as well so this will more than likely cover the £750)

This is the general advice I give when a bank chases you for a debt made up of disputed charges. We can amend the letter to suit your circumstances and you can take it with you on Friday, with your income expenditure sheet.

Under the banking code your bank should not chase you or enforce any debt which is in a valid dispute.

If a debt (overdraft) with a bank is made up of charges which you are disputing as unfair you should inform the bank of your dispute by entering your complaint.

This is just a suggestion and you are perfectly entitled to withold any payment until the outcome of the test case if your debt is outweighed by the charges complaint. This may save you having to deal with defaults being placed on your credit record, debts being passed to debt collection agents and court claims against you - all of which you can fight against, however prevention is better than cure is it not?

Quote:
Dear Sir or Madam,

ACCOUNT NUMBER: xxxxxxxxxxx

I am writing with regards to the alleged outstanding debt owing on my account. You will be aware that I consider the debt to be in dispute as the majority/whole of this sum is made up of disputed charges and interest charged thereon.

This dispute was notified to you in a letter dated xx/xx/xxxx (copy attached) (add any other action you have taken thus far with regards your claim for charges)

In your letter dated xx/xx/xxxx you have informed me the amount outstanding on the account is £xxxx.xx . The amount I calculate you have taken in unlawful charges and interest on those charges is £xxxx.xx. In addition I am claiming from you a sum of compensatory interest equal to 8% per annum which brings the total disputed amount to £xxxx.xx .

I have no intention of reneging on any part of this account which may be legitimately incurred debt and as I understand the issues surrounding the dispute are currently pending determination in the House of Lords and with the Office of Fair Trading, as a gesture of goodwill I would like to arrange with you to keep this debt on hold until the outcome of that case. Therefore I propose that you place a hold on further charges and interest being added to the account and that you accept an interim repayment plan.

I propose I make payments to you of £xx per calendar month, the first payment is enclosed, until such time as the dispute is resolved. Once this dispute has been resolved, if in my favour, you will continue processing my complaint, and if in your favour we will review repayment arrangements for the alleged debt. To be clear I currently dispute whether this sum or any is actually owed to your company and I am simply offering a reasonable solution in the interim whilst the dispute is considered.

I would like to make you aware of The Office of Fair Trading Code of Guidance in which it states: putting pressure on debtors or third parties is considered to be oppressive This includes: Ignoring disputes about whether money is owed and refusing to freeze action if the debt is in dispute.

I therefore hope to receive your full co-operation in this matter and would like to request a written response to that effect.

Yours Sincerely



Your Name

If you want to go this route have a go at amending the letter and I'll help you with it and your income expenditure if you would like.

Don't fall in the trap of making yourself more indebted to them, and their treatment of you, knowing you are in financial difficulty is wrong and should make you want to stop banking with them. (although no i would agree with their analysis that you arent in FD as set out in the waiver you have still notified them of problems and under the banking code they are supposed to take account of this - giving you a loan isnt help)

Trilly

Currently the bank have yet to officially discuss my overdraft renewal and I'm counting my chickens, but the 'quick check' came up with £0 so I can't see it being pretty.

I've no idea if they will have the correspondence on record tomorrow.

Also:

You have indicated that you are currently experiencing financial difficulties, however our initial assessment of your case has not revealed any clear signs of financial difficulties with ourselves or others to support this claim.

When the same day a letter arrives charging £35 for an unpaid £35 phone bill failing for being £4.37 short after interest of £37.97 came off my account the same day.

My main aim is that I don't want to have to fall into having a big DEBT DO NOT LEND stamp over me, which is why your post gives me hope beyond what I had this morning.

However I don't know if I should be trying to 'sell myself' to prove I can pay this back under some arrangement with them, whether it being a loan or otherwise.

Or if I just become standoffish and demand the renewal to be stalled until my overdraft case is dealt with?