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Bank Charges Reclaiming Guide discussion

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  • BermoniaBermonia Forumite
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    Whilst banks are required to consider hardship cases sympathetically, they are also usually only required to evidence that they have made some sort of attempt at stoping the cycle of charges - perhaps refunding fees one month and cancelling fees due the next.

    I certainly wouldn’t expect a full refunds of fees AND stat interest!

    As suggested by others, if there is unnecessary or frivolous spending in his history it is a problem of his own making and one which the banks and FOS would not likely look on favourably.

    Best advise would be to make your complaint but expect nothing in return, put the issues of past behind him and help him manage his finances moving forwards.
  • edited 24 January 2019 at 11:05AM
    gecko08gecko08 Forumite
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    edited 24 January 2019 at 11:05AM
    Thank you for your reply
    dunstonh wrote: »
    You didnt need to do that. It is not a step required.
    I followed the steps outlined in the MSE article, I have been using pre- 2009 tactics it seems.
    dunstonh wrote: »
    The bank look at the spending habits of the person as well as any arrears/defaults and high priority debts. If the spending habits indicate consumer items or expensive shops then they are more likely to reject.
    My friend has not got any of these spending habits i.e Sky, Netflix etc he does not live that kind of life, he has had a few holidays but he will literally go on holiday with little money and take a tent as he is unable to plan effectively.

    dunstonh wrote: »
    The documents uploaded by you indicate you mentioned health and gave a general summary of his finances. However, you did become quite aggressive in your demands. You are asking the bank for a goodwill gesture. Yet you demand statutory interest is added despite no wrongdoing. When you are trying to appeal to someone for a goodwill gesture, you should avoid making demands and false allegations as you risk winding the person at the other end up. You want that person on your side and you want them to picture the issues.
    Hmm I get the issue, I did not realise this, again I am using pre 2009 tactics it seems.

    dunstonh wrote: »
    You also made the error of referring to the charges being unfair. The minute you do that you normally expect a rejection as they are not considered to be unfair.
    I clearly have made a few detrimental mistakes, I am wishing I came here first for advice.

    dunstonh wrote: »
    You didnt upload the whole of the rejection letter. So, we dont have the benefit of the full reasons for rejection.
    I can assure you that is all of the letter I received, they did not even give any reasons.


    Thanks again for your pointers, is there anything I could or should do now given this current situation or your opinion going forward?


    Many thanks
  • [Deleted User][Deleted User]
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    gecko08 wrote: »
    is there anything I could or should do now given this current situation or your opinion going forward?
    I'm afraid there is no "going forward" from this.
    On two occasions, you've failed to convince that your associate is in the (bank's definition of) financial hardship. You've also referred to the charges that you wanted refunding as "unfair", when a long, drawn-out court case (a decade ago) ruled that they are not unfair.

    The MSE template is a poorly amended version of the one which existed prior to the court case. Why it still suggests you should make a comprehensive list of charges (which the bank will already be fully aware of) is a mystery. However, it does make plain that only those in true financial hardship have any chance at all of a refund of (some) charges.

    If you follow up this rejection (again) , you will need to show that your friend struggles to pay essential bills and/or that he is caught in a cycle of charges in which paying charges one month causes him to pay still more the next.

    You say he can afford to go on holiday, that's a definite pointer that he is not in financial hardship.

    You need to understand that there is absolutely no chance at all that the Bank will refund £5K (including interest!:eek:) in charges. Even if they deemed your friend to actually be in financial hardship, they have a range of remedies available to them including debt management and freezing interest for a period as well as the option of refunding (some recent) charges.
    gecko08 wrote: »
    It looks like my next step is the Ombudsman
    The Ombudsman will only rule whether financial hardship was treated sympathetically. You won't be awarded £5K I promise you.

    Read this thread (just a few pages) and you will see just how futile your endeavours are likely to be.
  • dunstonhdunstonh Forumite
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    I followed the steps outlined in the MSE article, I have been using pre- 2009 tactics it seems.

    Yes, that was something that pre 2009 "unfair" claims could do (although it still wasnt required but the article recommended it).

    The MSE article is kept for legacy information but is woefully out of date and, as you have now realised, can be more damaging than good if followed for current hardship claims.

    Your only option at this stage is to go to the FOS. However, the FOS, since 2009, have no ability to rule that the bank should refund a penny. All they can do is make sure the bank have considered the hardship fairly.

    Even when considered fairly, the most common outcomes are:
    1 - suspension of future charges of x number of months
    2 - placed on a debt management plan
    3 - a refund of upto 12 months charges

    It can be one of those or a combination. Refund is not the only option. Suspension of future charges in increasingly common nowadays.

    The reason I asked about the letter missing something is that there is no signature block and the content doesnt address the hardship issue.

    In most hardship claims, the person receives a phone call and a discussion on budget and affordability takes place. The bank can see the retailers where things are bought. If holiday companies do appear on there then it will be held against the claim even if it is a UK camping holiday as people in hardship dont take holidays.

    I do wonder if the reference to "unfair" and demand for statutory interest refund has left the bank treating it as an "unfair" charges reclaims and meant they haven't really considered the hardship side at all. As I mentioned above, the minute you those things, the banks normally reject. So, referring it to the FOS on the basis that you feel the bank has not considered hardship is something that should be done. However, the expectation of success should be low and even with success, it may only be a few months of refund that may come his way.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hi, I was wanting to ask for some advice, I had incurred over £1000 in bank fees for unauthorised overdraft fees for my old alliance & leicester account. Can I still claim these back even though the bank was taken over by Santander? The account is now closed and I cannot remember the sort code and account number.

    Mairead
  • edited 31 January 2019 at 1:15AM
    [Deleted User][Deleted User]
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    edited 31 January 2019 at 1:15AM
    I had incurred over £1000 in bank fees for unauthorised overdraft fees for my old alliance & leicester account. Can I still claim these back even though the bank was taken over by Santander?
    Not at all, I'm afraid.
    Since 2009 (now a full decade ago), bank charges have not been "reclaimable" unless you are CURRENTLY in the Bank's definition of financial hardship.

    However, in your case, it doesn't matter how bad your current financial situation is because you are no longer a customer of the bank in question and so it also doesn't matter who took them over.
    Having no account details is just a further nail in the coffin of your "complaint". Basically, historical charges are never going to be refunded to you.

    I suggest you read this thread, just a few pages will do, to get a taste of exactly what an uphill struggle it is to get old bank charges refunded.
  • dolgothdolgoth Forumite
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    HI,

    I think I was originally sold an HSBC account under false pretext (easier to get a mortgage) so the account probably was not right for me at the time. I would say though in the last few years (possibly 3) the account probably is right. Is there a way to only claim for a portion of the period or claim then keep the account? Would keeping the account put a bad mark against your name after claiming?

    Thanks
  • dunstonhdunstonh Forumite
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    dolgoth wrote: »
    HI,

    I think I was originally sold an HSBC account under false pretext (easier to get a mortgage) so the account probably was not right for me at the time. I would say though in the last few years (possibly 3) the account probably is right. Is there a way to only claim for a portion of the period or claim then keep the account? Would keeping the account put a bad mark against your name after claiming?

    Thanks

    I think you have posted to the wrong thread. This is about overdraft charges that people used to claim back on before 2009.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • BermoniaBermonia Forumite
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    Whilst the wrong thread the answer is no, you would not be able to have your cake and eat it I’m afraid
  • [Deleted User][Deleted User]
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    dolgoth wrote: »
    Is there a way to only claim for a portion of the period or claim then keep the account?
    No, if you complain the account was mis-sold to you then it will be totally cancelled if your complaint is upheld.


    You don't appear to have a very compelling complaint in any case...
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