My decision from the Financial Ombudsman

Daisy1980

[FONT=&quot]Dear XXX XXXXXX[/FONT]
[FONT=&quot]Your complaint about Barclays Bank Plc[/FONT]
[FONT=&quot]I am in receipt of your email dated 16 March. Thank you for taking the time to respond to [/FONT][FONT=&quot]my findings.[/FONT]
[FONT=&quot]I have considered the information which has been provided, but regret to have to tell you [/FONT][FONT=&quot]my view of your complaint remains unchanged.[/FONT]
[FONT=&quot]As you know, the Office of Fair Trading brought an important legal "test case" to establish if [/FONT][FONT=&quot]it could assess whether the amounts the banks were charging were fair. As part of this [/FONT][FONT=&quot]legal "test case", the Court was also asked to consider whether these types of charges [/FONT][FONT=&quot]amounted to "penalties".[/FONT]
[FONT=&quot]As you also know, we decided not to deal further with bank charges complaints until the outcome of the Office of Fair Trading's -test case" made the law clearer. During the course [/FONT][FONT=&quot]of the legal -test case- the Courts ruled that these sorts of charges:[/FONT]
· [FONT=&quot]did not generally amount to penalties; and[/FONT]
· [FONT=&quot]cannot be challenged on the grounds they are too high.[/FONT]
[FONT=&quot]This means that the Office of Fair Trading lost its case. The legal action ended in a [/FONT][FONT=&quot]decision by the Supreme Court – the highest court in the United Kingdom – on 25 [/FONT][FONT=&quot]November 2009. The decision, and a summary of it, can be found on the Court's website [/FONT][FONT=&quot](at [/FONT][FONT=&quot]xxx.supremecourt.gov.uk).[/FONT]
[FONT=&quot]In my letter of 12 March 2010 1 confirmed that there is no obligation on the bank to offer a [/FONT][FONT=&quot]full refund of current account charges as a response to a customer's financial hardship. This may, however, involve the bank looking at a number of different options to assist [/FONT][FONT=&quot]customers in this position. Complaints such as these, therefore, relate to whether there is [/FONT][FONT=&quot]an onus on the bank to offer more assistance. Much will depend on the individual circumstances and the bank's policy for dealing with such cases.[/FONT]
[FONT=&quot]I note you have supplied an additional copy of the letter sent to your local Barclays branch [/FONT][FONT=&quot]on 6 November 2009, in which you say that you asked the bank to cancel the "personal reserve" facility. However the correspondence in question would merely appear to be a [/FONT][FONT=&quot]request for a full refund of the reserve fees. Having viewed your statements I note that you [/FONT][FONT=&quot]continued to use the account and have the benefit of the reserve facility until January 2010,[/FONT]
[FONT=&quot]at which point the debit card was returned to the bank with an outstanding account [/FONT][FONT=&quot]balance.[/FONT]
I am quite prepared to accept that much of the debt may comprise of reserve fees previously levied. However in light of the recent Supreme Court test case outcome, we are unable to consider complaints surrounding the fairness, or otherwise of such charges. Furthermore, as stated in my letter of 12 March 2010, we would not consider the bank's position unreasonable that a customer should be vigilant, monitor the balance on the account and ensure that funds"be deposited when required to pay amounts owed.
The bank has now acknowledged your financial hardship claim, and confirmed it is happy to discuss a repayment plan in reduction of the debt. As such, I am persuaded that the bank has implemented a remedy which is consistent with its obligations under the Banking Code, or, after 1 November 2009 the Banking Conduct of Business rules.
For the reasons explained above, I do not consider Barclays is obliged to do any more.
[FONT=&quot]As we explain in our leaflet, [/FONT][FONT=&quot]your [/FONT][FONT=&quot]complaint and the ombudsman, [/FONT][FONT=&quot]consumers have the right to ask an ombudsman to review their case – as the final stage of our process. But if we do not hear from you by 31 March 2010, we will assume that you have decided not to pursue [/FONT][FONT=&quot]the complaint further.[/FONT]


[FONT=&quot]Justin Pemberton Adjudicator[/FONT]

dunstonh

Seems fair enough. Although its not what you wanted to hear.

davidgmmafan

So there's absolutely nothing to stop the banks increasing the charges again later on why can't the OFT et al see this? NOTHING has been achieved by the powers that be, every change has been brought about by the little man.

Premier_2

Yeap, nothing surprising in that response at all. All as per the latest MSE articles on reclaiming bank charges:

1.

the best way to avoid bank charges is not to have them in the first place

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

and more specifically in yesterdays email:

combat bank charges yourself with three quick steps. Step 1: Avoid 'em. The best way to fight them is not to get them, do a budget and constantly check your statements.

http://www.moneysavingexpert.com/tips/17-03-2010/

2.

Even if the bank has accepted your word that you’re in financial difficulties or does after you’ve sent in the financial statement form, this doesn’t mean it has to give you your money back, just that it has to treat you sympathetically.

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

3.

The Ombudsman has said it doesn’t want legalese challenges; it will only look at cases based on the ‘human’ criteria – in other words if you have been harshly or unfairly treated.

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

natweststaffmember

Did you include a letter to cancel the Reserve in November 2009?
What arguments did you base your letter around?

Daisy1980

I did request for my reserve to be cancelled in the original letter sent in November. My basis for complaint was financial hardship, and that Barclays did not acknowledge my situation or offer to help. Monies carried on being taken from my account untill the FO got involved.

So it seems I will have to arrange a payment plan to pay all their fees. I have since changed banks so all that is owing in the Barclays account is Reserve fees.

Premier_2

Daisy1980 wrote: »

I did request for my reserve to be cancelled in the original letter sent in November.

That may be what you thought you asked for, but the Adjudicator didn't agree with you.

I note you have supplied an additional copy of the letter sent to your local Barclays branch [FONT=&quot]on 6 November 2009, in which you say that you asked the bank to cancel the "personal reserve" facility. However the correspondence in question would merely appear to be a [/FONT][FONT=&quot]request for a full refund of the reserve fees. Having viewed your statements I note that you [/FONT][FONT=&quot]continued to use the account and have the benefit of the reserve facility until January 2010,[/FONT]

If that is wrong, you should contact the Adjudicator showing him clearly where you requested the cancellation of the reserve.
The fact you appear to have continued to use the reserve service even after you say you asked for it to be cancelled will not help your arguement.

Daisy1980 wrote: »

My basis for complaint was financial hardship, and that Barclays did not acknowledge my situation or offer to help. ....

Again, the Adjudicator didn't agree with you, sorry

The bank has now acknowledged your financial hardship claim, and confirmed it is happy to discuss a repayment plan in reduction of the debt. As such, I am persuaded that the bank has implemented a remedy which is consistent with its obligations under the Banking Code, or, after 1 November 2009 the Banking Conduct of Business rules.
For the reasons explained above, I do not consider Barclays is obliged to do any more.

Daisy1980

I understand what the Adjudicator is saying and I am going to do as he suggests. However it took Barclays over 4 months to acknowledge my financial hardship and they have only done this through the FO.

Also I did request for the reserve to be cancelled in a separate paragraph of the letter [FONT=&quot]"Can you please also stop any further charges and cancel the reserve on my account."[/FONT]
I have since sent a further copy to the adjudicator highlighting this line.


Any how I don't think this will make any difference to his decision. I have a new Bank now, who I am more than happy with so will just move on and hope to put the whole thing behind me.


Thanks for the replies:T




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