Dead end reached with reclaiming bank charges - Please Please help!!

magenta75

I will keep this as brief as possible. When I was an undergraduate student in 2005 I took out a £1000 overdraft with Lloyds TSB. At the end of my course I was in financial difficulties and accrued several debts (all now paid off) but I went over my OD limit (by about £200) When I found employment Lloyds contacted me and asked me to start making repayments on my OD and I agreed to do this and set up a direct debit over the phone from my other Lloyds account. It wasn't set up properly however and I didn't realize. So Lloyds started calling me and telling me they were going to start adding interest. I set up a direct debit for £50 a month and thought no more of it,, however because this wasn't counted as an agreed arangement (even though it was set up as a standing order from another account with Lloyds) it was passed to a collection department. It then got very confusing because they were telling me that it was in the process of being passed from the collections department to another department and that I couldnt formalize my arrangement until it reached that department. Eventally I got a letter from Apex credit management and confirmed with Lloyds that Apex was acting on their behalf. I sent of a CCA request to Apex which they never replied to but I have just read on this website that this avenue has now been closed. I also wrote to Lloyds and asked them to refund my charges as I am now a student and am on a £6000 a year income which has to cover my rent, bills and living costs. Today I recieved a letter saying that they will not refund my charges but because I am experiencing "financial difficulties" they are going to forward my complaint on to the collections team to see if they can help me review my finances. What is my next step please?? Thank you for taking the time to read this

Premier_2

Why not work with their collections team to review your finances in line with the offer they have made?

The bank are not expected to necessarily refund hardship cases, but to treat such cases fairly and considerately.

Q. 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 How to complain to the Ombudsman guide). Though if it's about bank charges specifically it's best to follow the information below.

http://www.moneysavingexpert.com/news/reclaim/2009/11/bank-charges-qa-door-reopened-for-reclaimers

natweststaffmember

magenta75 wrote: »

I will keep this as brief as possible. When I was an undergraduate student in 2005 I took out a £1000 overdraft with Lloyds TSB. At the end of my course I was in financial difficulties and accrued several debts (all now paid off) but I went over my OD limit (by about £200) When I found employment Lloyds contacted me and asked me to start making repayments on my OD and I agreed to do this and set up a direct debit over the phone from my other Lloyds account. It wasn't set up properly however and I didn't realize.
Which is bank error on lloydsTSB's part and most definitely should have been dealt with. When did this happen? Did you keep a note of approximately when you contacted the bank?

So Lloyds started calling me and telling me they were going to start adding interest. I set up a direct debit for £50 a month and thought no more of it,, however because this wasn't counted as an agreed arangement (even though it was set up as a standing order from another account with Lloyds) it was passed to a collection department.
That to me is a rational approach to take.

It then got very confusing because they were telling me that it was in the process of being passed from the collections department to another department and that I couldnt formalize my arrangement until it reached that department. Eventally I got a letter from Apex credit management and confirmed with Lloyds that Apex was acting on their behalf. I sent of a CCA request to Apex which they never replied to but I have just read on this website that this avenue has now been closed. I also wrote to Lloyds and asked them to refund my charges as I am now a student and am on a £6000 a year income which has to cover my rent, bills and living costs.
That wouldn't class as financial hardship.
I do have two questions:
1) How much of the £50 payments had you made before it stopped?
2) At the time original agreement was agreed, how much would you have paid if the £50 was set up correctly?
3) Did you at any time ask lloydsTSB about why the error occurred and what was their response?
4) I still think you have a case based on Bank error alone with regards to the original agreement but you may have to SAR the bank or ask the bank to provide details of those people who accessed your account around the time of the original agreement and the notes from that phone call which I would expect would have been put on your account with LloydsTSB.
Today I recieved a letter saying that they will not refund my charges but because I am experiencing "financial difficulties" they are going to forward my complaint on to the collections team to see if they can help me review my finances. What is my next step please?? Thank you for taking the time to read this

Please see above, I would be surprised if they did look at hardship based on the post you have given but I do need more information because I think you have, gone to the bank with the wrong argument to a degree. I don't think you owe the total amount that you have been given by Apex and that the amount is substantially lower.

The reclaims route on historic charges is currently at a stand still awaiting further legal advice but I don't think this case should be dealt with as a 100% reclaim unfair bank charges case but as a bank error and that the amount specific to that original agreement is where your case lies in on that matter.

magenta75

thanks for your replys

Natwaststaffmember: I do approximatly know when the dates are. I made about £400 pound worth of payments before they were stopped I think if it had been set up as originally I thought then I would have paid about £800 I think. How do I approach this with LLoyds? Could I also please ask why my income does not meet the requirements for financial hardship? Thank you

natweststaffmember

magenta75 wrote: »

thanks for your replys

Natwaststaffmember: I do approximatly know when the dates are. I made about £400 pound worth of payments before they were stopped I think if it had been set up as originally I thought then I would have paid about £800 I think. How do I approach this with LLoyds? Could I also please ask why my income does not meet the requirements for financial hardship? Thank you

I'll try and answer the points.
1) The account is no longer causing you hardship since it is not your main account.
2) You need to do that in writing with the approximate dates.
I need to clarify the post though, can I ask whether the amount you believe you legitimately owe is £400.00?


Furthermore, do you have mortgage.rent arrears, utilities arrears?