Another hardship case!!

Neil1690

Hi folks,

Have been visiting this site for many years as my reclaiming campaign goes on and on and on!!

I have found it very difficult to get anywhere with HBOS, but I'd like to give you a breakdown of my fiancial situation and get your views on whether you think this does indeed meet the Bank's idea of financial hardship.

This is what I sent to the bank in my most recent letter. Please bear in mind that these payday loans were a direct result of covering bank charges from when I was at University and trying to meet the banks payment of £100 per month for the £2500 loan I had when at University....

Here is a summary of my monthly outgoings.......


Rent £185
Bills contribution £65
BOS Loan £100 (total amount owed £2,990)
Payment to Egg £70
Phone Bill £25 (minimum contract)
Payday Loan : Poundstillpayday.co.uk (Amount outstanding £585, currently paying a rollover interest payment of £167.5)
Payday Loan : Cashgenie.co.uk (Amount outstanding £130, paying rollover interest of £30)
Payday Loan : Uncle-Buck.co.uk (Amount outstanding £550, rollover interest £150)
Payday Loan : QuickQuid.co.uk (Amount outstanding £420, paying interest of £90)
Payday Loan : Lending Stream.co.uk (Amount outstanding £200, paying interest of £60)
Payday Loan: Paydayexpress.co.uk (Amount outstanding £310, paying interest of £60)
Petrol to get to work £100
Car Insurance £45
BOS authorised overdraft charge £30



I still only clear £1195 per month. As you can see my total outgoings pratically equal what I earn and this is before I have taxed my car, bought a pair of shoes, or bought lunch at work. This situation is a direct consequence of the circumstances and manner in which the charges were levied creating potential for the application for multiple charges which has led to this end result. I have done everything in my power to avoid charges in the last 12 months, yet I have still encountered some and as I stated in my last letter it is seriously beginning to affect my health. I have visited the doctor on numerous occasions due to stress and anxiety, however desperately cannot afford to be absent from work which would deepen this crisis further. I am genuinely teetering on the brink of bankrupcy.

All of this certainly constitutes hardship in my eyes and I have spoken to the ombudsman who has agreed I have a genuine case- but I was wondering how you think the bank will respond to this. I should note that I am living with my parents just now and thus do not have rent/mortgage/council tax arrears just yet.


Thanks, Neil

natweststaffmember

Where are your priority debt arrears(mortgage/rent, council tax, utilities)?
EDIT: just spotted that part of the post. I don't see financial hardship.
At the moment I can't see financial hardship.
Might be worth asking advice as well from the debt free wannabe board as well as here

Neil1690

Thanks for the quick response. What I don't get with the hardship criteria is that it appears you have to hit absolute rock bottom before they will consider the case. It almost begs you to get into as big a mess as possible so at least then they will consider it.

Give my case another 6 months and I will be bankrupt- most accountants could tell you that. Why is it I have to wait for that to happen before my case will be looked at...? This was something that the ombudsman agreed with me and mentioned that if the bank did not offer me anything this time then they would consider putting this case to the bank on those grounds...

natweststaffmember

Neil1690 wrote: »

Thanks for the quick response. What I don't get with the hardship criteria is that it appears you have to hit absolute rock bottom before they will consider the case. It almost begs you to get into as big a mess as possible so at least then they will consider it.

Give my case another 6 months and I will be bankrupt- most accountants could tell you that. Why is it I have to wait for that to happen before my case will be looked at...? This was something that the ombudsman agreed with me and mentioned that if the bank did not offer me anything this time then they would consider putting this case to the bank on those grounds...

Read this article from April 2004 and you will see why the Ombudsman would not agree that you are in financial hardship. The FOS will always look at any case but I doubt that they would overturn the banks' decision.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/39/financial-difficulty-debits-39.htm

PLEASE READ THE ABOVE ARTICLE VERY CAREFULLY cos it does explain it very succinctly.

Neil1690

Again, thanks for the response, but the problem I have here is that there is no available income to repay the debt. Also, as you can see- the majority of the short-term and most costly debt is not with the institution with whom I bank with.

If I could clear the payday loans, then I would be in a position to repay my bank loan etc... after another few months of this I will eventually default when the credit runs out and then I will be in a potentially homeless position as my folks cannot afford to let me stay cost free....:(

natweststaffmember

Neil1690 wrote: »

Again, thanks for the response, but the problem I have here is that there is no available income to repay the debt. Also, as you can see- the majority of the short-term and most costly debt is not with the institution with whom I bank with.

If I could clear the payday loans, then I would be in a position to repay my bank loan etc... after another few months of this I will eventually default when the credit runs out and then I will be in a potentially homeless position as my folks cannot afford to let me stay cost free....:(

Are you not making repayments on those payday loans?

Neil1690

No, I am simply covering the massive interest charges. Those payments I note above are the interest charges. The balance of the loans are exactly the same each month- I have nothing at all spare to even reduce them marginally....

natweststaffmember

Neil1690 wrote: »

No, I am simply covering the massive interest charges. Those payments I note above are the interest charges. The balance of the loans are exactly the same each month- I have nothing at all spare to even reduce them marginally....

What is the payment to Egg for?

Neil1690

That is a payment for outstanding credit card debt- again accrued many years ago- total outstanding on that is currently £570, though I do not pay any interest as that has reached an arrears situation...

Neil1690

natweststaffmember wrote: »

What is the payment to Egg for?

I also think that some of the stuff outlined in your hardship guide would definitely apply to my situation, certainly points 139-140 specifically.

Neil1690

jdx wrote: »

Have you reclaimed charges back from the Egg card?

Hi JDX, no I have not gone down that route yet as Egg only ever charged me £12 for non-payment which I believe is what is considered to be a reasonable default sum. I believe I was only charged this amount 4 times- though the £48 would be a considerable sum for me in the position I am- but not a problem solver unfortunately.