HSBC Hardship

gems3286

Hi All,

I wrote to HSBC last year wanting to recliam my bank charges. I never recived a letter so sent one again not long ago this year and stated that i am now in hardship.

They asked me if i would give them a call to go through my financial cricumstances with them. Totaly forgot about ringing them (had loads on my mind at min) Then they sent me another letter on 4th december asking me to give them a call.

I have just gave them a ring and they have now turned around and said that as the bank charges have been declared as fair that they don't have to do anything now.

Just wondering what can i do now?

Any help would be great.

Premier_2

Does the hardship rule still apply? Can I still claim if I'm in hardship?
A. The FSA's hold on banks dealing with the reclaim has been lifted, so there is no longer a specific hardship rule.
However, under FSA regulations, banks must treat you fairly anyway and be considerate if you are in hardship. If you think that hasn't happened, you can complain to the Ombudsman (see the How To Complain To The Ombudsman guide). Though if it's about bank charges specifically, it's best to follow the information below. ...


I haven't yet put in a claim, what should I do?
A. Hold off for the moment and see what happens with the Office of Fair Trading (OFT). Even if it doesn't take the case up we will produce new guidance on how to try to reclaim - ensure you're getting the free weekly e-mail where we will publish an update as soon as possible.


How likely is it I will get my money back?
A. Much less likely than prior to the Supreme Court result, but not impossible. Still, the best thing to do is plan for getting nothing, but cross your fingers. ...

http://www.moneysavingexpert.com/reclaim/bank-charges

natweststaffmember

gems3286 wrote: »

Hi All,

I wrote to HSBC last year wanting to recliam my bank charges. I never recived a letter so sent one again not long ago this year and stated that i am now in hardship.

They asked me if i would give them a call to go through my financial cricumstances with them. Totaly forgot about ringing them (had loads on my mind at min) Then they sent me another letter on 4th december asking me to give them a call.

I have just gave them a ring and they have now turned around and said that as the bank charges have been declared as fair that they don't have to do anything now.

Just wondering what can i do now?

Any help would be great.

The bank still has to treat you fairly under BCOBS, and under the lending code they would still look at ways to help you but the onus is also on you to try and see what you can do with those creditors who are not being paid.
There is no specific guidance that a refund of charges has to be given, however, all bank can refund for a period in which the hardship was at its worst.

Premier_2

natweststaffmember wrote: »

...There is no specific guidance that a refund of charges has to be given, however, all bank can refund for a period in which the hardship was at its worst.

All banks can refund any customer any bank charges for any period they so desire; it is not limited to just hardship cases

natweststaffmember

Premier wrote: »

All banks can refund any customer any bank charges for any period they so desire; it is not limited to just hardship cases

yes, but most banks policies are that unless it is bank error or there is reputational risk, they would normally decline refunds. That is currently the policy as explained by the MSE news on Nationwide process and in my experience when I worked for the bank that is the process that RBS Group use. Goodwill payments can be made if it is the first charge but from posters on here RBS Group are unlikely to do so under their new charging structure in place.

Premier_2

natweststaffmember wrote: »

yes, but most banks policies are that unless it is bank error or there is reputational risk, they would normally decline refunds. ...

Perhaps with Natwest, but LloydsTSB, Barclays & HSBC are all prepared to issue refunds on a case by case basis

Reputational risk? Not really, a goodwill gesture is how they phrase it to keep any specific current customer they don't wish to lose happy.

natweststaffmember

Premier wrote: »

Perhaps with Natwest, but LloydsTSB, Barclays & HSBC are all prepared to issue refunds on a case by case basis

Reputational risk? Not really, a goodwill gesture is how they phrase it to keep any specific current customer they don't wish to lose happy.

What do you think we are talking about re financial hardship? We aren't talking about the whole of the OP's street, we are talking about them specifically and their case specifically. Furthermore, under the FSA Waiver on Bank Charges the banks' were given advice by the FSA that they should consider a refund of charges during the period of financial hardship. Furthermore, from information that I got from the banks' themselves(I think I managed to get information from almost every single provider under the FSA Waiver including I&E forms) that is the way that they dealt with customers in financial hardship. There were differences in terms of how far back they went and how they responded or didn't but the basic process was the same. I doubt it has changed significantly but the FSA Waiver is no longer in place and what is openly available from the Lending Code the onus is on the customer and there is no specific provision for a refund of charges even though one can be considered for the period of time in which hardship occurred. That part is important. Other factors which exclude the OP would be reputational risk(unless the OP is either well known in the locality or is a Celebrity, journalist perhaps). Yes case by case but I didn't say that it wasn't on a case by case basis, merely that there is not a specific part of the lending code which says the bank HAVE to refund.

Not sure if you think I am picking things out of the air but I worked my !!! off over the last 8 months or so getting information, I can source where all the information is on that specific project if you would like?

Premier_2

natweststaffmember wrote: »

... Yes case by case but I didn't say that it wasn't on a case by case basis, merely that there is not a specific part of the lending code which says the bank HAVE to refund....

Correct, there is no obligation to refund, but banks can elect do so if they so wish. This is not limited to hardship cases.