Confused by Barclays' offer: what are they referring to?

esmerellda

Deleted_User wrote: »

Perhaps a more satisfactory solution - although obviously I can see that in many ways it creates a legal minefield - would be for banks to automatically refund 100% of charges to anyone who can prove financial hardship; but the refund to be given subject to the test case decision; if the FSA rules in favour of the consumer, then no further action is taken.

If the FSA rules in favour of the banks, then the banks would be entitled to request repayment of the charges from the 'financial hardship' consumers over an extended period of time, to minimise the impact.

In other words, the refund is a conditional loan, repayable on demand (subject to the FSA decision).

Sorry, I don't agree with this at all. I actually think as it is is the right way and should continue after the test case whatever happens.

[Deleted User]

It's ok - we are in complete agreement. I was just trying to press a bit further as I really do feel that a LOT of people visiting this site are likely to read the articles and think 'I'm in financial hardship so I'm entitled to my money back', or if not that then 'I'm in financial hardship so I can apply for my charges back', when both of these are not true.

All you can do is apply for financial hardship to your bank, which is actually not something I had wanted my bank to know - and it's only having gone through this process that I realise that now.

The danger is - or perhaps it's not a danger - that anyone with a loan or credit product with a bank might find that the banks' 'commitment to provide assistance' comes in the form of an arrangement to pay, which will materially affect their credit rating? Perhaps that's not likely, I don't know.

What I do know is that now my bank have flagged me as in 'financial hardship' when previously they weren't aware, so I hope this doesn't affect future dealings with them...

esmerellda

Agree with all your points. payment arrangements are one of the actions a bank will take to help with hardship.

[Deleted User]

esmerellda wrote: »

Agree with all your points. payment arrangements are one of the actions a bank will take to help with hardship.

In which case, can you find any article on MSE.com that states that by claiming bank charges back under the heading of 'financial hardship' that your credit rating may be affected?

I can't...

(sorry Esmerellda, we are in complete agreement here; I'm just a little anxious having claimed financial hardship that actually I would have been better waiting until the test case is complete, if it has the potential to affect my dealings with the bank).

[Deleted User]

Et voila: a real life example of someone who was confused by the MSE rhetoric and who is now suffering in very real terms because they are now in 'financial hardship' according to their bank:

http://forums.moneysavingexpert.com/showthread.html?t=1933125

esmerellda

There we are, save me hunting

aimed at peeps in general.
If you are at all worried about your credit rating or you are just trying hardship as a bypass to the waiver, please just don't. It holds things up for people in desperate need and makes banks treat hardship less 'trustingly' as it were as they try weedle out the slightly skint from the holey shoes starving homeless. (okay exagerating but you know what I mean). mostly if you are in extreme hardship you don't give a hoot about your credit rating as its already screwed, you just need to get something bck from the bank who is mistreating you terribly so you can eat and pay your rent and stop the baillifs bashing on your door.

(off chest now)

[Deleted User]

Well said I just wish MSE would say it!

esmerellda

Lol me too.

teachingqueen

Hi all,

My partner and I have both received letters from Barclays stating that a partial refund has been made into our accounts and that our claim has been closed (identical to the letter sent to bunglejemson).

Neither of us are particularly happy with the offer - although we are glad that they didn't just refuse outright! I've gone through all the previous posts but to be honest they left me a little confused :-)

If we write to Barclays and accept the partial offer without prejudice and request that they refund the difference to both is there any way that they can take back the money they have already paid into our accounts? Like bungle, we weren't given the opportunity to accept the offer as the letters arrived after the event.

I'm aware that they don't technically need to give us any refund just because they've acknowledged that we're in financial hardship but we aren't really in a position to have them take back what they've paid out. It doesn't resolve the issue of our financial hardship though so where do we stand?