Let down by bank

digbyjoines

Hi all

I'm hoping someone might be able to offer some constructive help regards my situation?

last year i was hospitalized following a serious illness. This subsequently forced me to move accommodation as my ability to earn was affected. After banking for 16 years with the Halifax, i thought they might support me through this difficult period. Thus, i requested an interim O/D of just 1.4k for an eight month period. This secured against a guaranteed annual pension payment of 2,8k Alas they declined. Such was my dire situation i was forced to sell my drawndown pension to an annuity pension company. This now alas yields an annual payment of half the drawdown at 1.4k

Moreover, In essence, i'd never have departed the original drawdown pension, which i was more than happy with. The bank then gave me the OD on the basis it had to be paid back within a month. Thus i had no option and took the OD. However, i was then struggling to pay back the 1.4K OD in the month agreed. I instead paid 400 immediately explaining my circumstances and offered to make regular payments which would be completed within the year. However, they quickly sent me to the wolves - metaphorically speaking - as a debt collecting agency took over the account. Now, bearing in mind during the many years i'd been with the bank, i'd at times had as much as 20k and more which they'd have gleaned considerable interest. I'd never been overdrawn even when funds were strapped during later years. Always careful to stay in the black. I'm now considering taking legal action but wondered have i any scope for a challenge regards my treatment with them?

Any advice would be truly appreciated.

Mr DJ

david39

While sympathising with your plight, you did accept the terms of the loan and then never kept to them, so I think your suggestion of legal redress is a non-starter.

Other than your feelings that the bank have not shown you the respect that you feel you earned from them over the years as a customer, where have they failed to comply with their contract or the law?

digbyjoines

David

Appreciate your courtesy and candor.

Of course, lawfully i guess they've acted ok? However, in terms of looking after a customer, then it might be deemed they've failed.

I was seeking objectivity and i guess most would agree with you.

However, I do feel, in these difficult times, some compassion and empathy for a customers' individual plight might be appropriate? As you imply, it's probably naive to assume that would be their approach.

Thanks again Mr DJ

Thrugelmir

Banks are in the business of lending other peoples money, not their own. So whilst I have every empathy with you. Your length of time as a customer has no bearing. I have spent money in Tescos for over 30 years. However they require me to pay for my shopping when I leave the store.

digbyjoines

Thanks again and these are responses i anticipated.

My main gripe is the way they immediately sent me flying through the trap-door to those lovely folk, debt collecting agencies. As i've offered to make regular payments to the bank - in question - then i really don't understand why they at least didn't give thee the chance to make the remaining payments that way?

Still, it's business (and life) as we know it jim.:eek:

cheers - DJ

gadgetmind

digbyjoines wrote: »

Such was my dire situation i was forced to sell my drawndown pension to an annuity pension company. This now alas yields an annual payment of half the drawdown at 1.4k

A lifestyle that relies on both working and taking maximum from an unsecured pension is always going to be high risk as you have two major sources of risk. Adding to this by reducing your income to allow you to add more gearing seems like yet another self-inflicted wound.

I sympathise (no, seriously, I do!) but I can't see that you have any case against the bank, in fact it might even be the other way around!

DavidLaGuardia

digbyjoines wrote: »

Such was my dire situation i was forced to sell my drawndown pension to an annuity pension company. This now alas yields an annual payment of half the drawdown at 1.4k

Moreover, In essence, i'd never have departed the original drawdown pension, which i was more than happy with. The bank then gave me the OD on the basis it had to be paid back within a month.

Any advice would be truly appreciated.

Mr DJ

I'm missing something here, because I have no idea why you decided to get the annuity (you obviously didn't want) prior to the bank agreeing to give you an overdraft on the terms you wanted?

Did the bank demand that you had the annuity?

What does not make sense is that you wanted 1.4k and could take 2.8k in drawdown
or switch to an annuity of 1.4k
Surely you could have taken 1.4k of the drawdown immediately in advance (instead of borrowing the money as drawdown permits this flexibility) and still have been able to take the remaining 1.4k in income exactally as you now do on the annuity with no need to go to the bank? (I realise that the drawdown would be netted down IF you pay tax, but is this the case? If it is , the principle is still the same as you could have raised a slightly higher sum for a temporaily reduced remaining income for the year below 1.4k)

Additionally, if the bank were not going to permit you to run the debt over a year, you perhaps should have considered moving banks and making an offer of repayment based on your circumstances rather than paying £400.

I appreciate it is a fait acomplis, but I do not understand why you did both of these things before having the desired terms?

Can you complain? I think maybe, but not definitely, considering the following:

If they offered the loan on the basis of the annuity and did not point out that you could raise your own 1.4k and still have 1.4k in income, and they knew the facts (I cannot assume this as your actions with the annuity company were separate) then there may be a case to complain that they have not acted as responsible lenders and should have directed otherwise as they were the financial experts and you were not.