What does a "Financial Hardship Claim" mean?

Harry_Potless

I wrote to my bank and got a list of all the charges they had made.

When I got the information, I drafted and forwarded a request that they consider my claim for a refund of the same, despite the High Court judgement in the banks' favour. That claim being based upon my current and recent (for some years) financial hardship.

The bank has replied stating that WHEN THEY MADE THOSE CHARGES it is their opinion that they had no evidence of financial hardship (even though I was in financial hardship for much of that time - as evidenced by my going overdrawn and requesting overdraft facilities, which were denied) so they will not refund the charges.

Does the "Financial Hardship" rule refer to my obvious financial difficulties now or my, arguably, less obvious financial difficulties when I incurred the charges?

Thank you.

roonaldo

Now. charges may have occured in the past due to not managing your account well, that doesnt mean you were in hardship. A lot of charges may have put you in hardship perhaps.

But you really have to be struggling with more outgoings then income to be classed as in hardship. Many people think they are in hardship, but still have the money to pay a £70 sky bill, £40 mobile bill and £100 month on gambling websites etc etc and going overdrawn because of this, this is not hardship (ive seen it !)

Harry_Potless

roonaldo wrote: »

Now. charges may have occured in the past due to not managing your account well, that doesnt mean you were in hardship. A lot of charges may have put you in hardship perhaps.

But you really have to be struggling with more outgoings then income to be classed as in hardship. Many people think they are in hardship, but still have the money to pay a £70 sky bill, £40 mobile bill and £100 month on gambling websites etc etc and going overdrawn because of this, this is not hardship (ive seen it !)

Thank you for the advice.

So it is based on my CURRENT circumstances? Not the financial circumstances I was in when I got charged?

If that's so, why did the bank refer to what was then? Are they just trying it on? Should I appeal or just go straight to the Ombudsman, do you think?

FYI I'm on Income Support which doesn't even pay two-thirds of my rent (and that's before I've purchased a loaf of bread, switched a light on or turned the tap) so I guess I'm in financial hardship.

Thanks again.

HappyMJ

Harry_Potless wrote: »

Thank you for the advice.

So it is based on my CURRENT circumstances? Not the financial circumstances I was in when I got charged?

If that's so, why did the bank refer to what was then? Are they just trying it on? Should I appeal or just go straight to the Ombudsman, do you think?

FYI I'm on Income Support which doesn't even pay two-thirds of my rent (and that's before I've purchased a loaf of bread, switched a light on or turned the tap) so I guess I'm in financial hardship.

Thanks again.

Income Support is not supposed to pay any of your rent. Housing Benefit pays all of your rent. If you are in private rental then it pays up to the LHA amount and you find the excess from elsewhere (but not from income support).

Harry_Potless

HappyMJ wrote: »

Income Support is not supposed to pay any of your rent. Housing Benefit pays all of your rent. If you are in private rental then it pays up to the LHA amount and you find the excess from elsewhere (but not from income support).

My rent is just shy of £300 per week and my total household's benefit payment is £172, hence my financial difficulties.

Thanks for caring enough to reply, though.:beer:

But what I need to know is, does the Financial Hardship rule cover now or when the charges were taken?

Should I appeal their decision or should I go to the ombudsman or am I wasting my time and should I give up?

Harry_Potless

roonaldo wrote: »

Now. charges may have occured in the past due to not managing your account well, that doesnt mean you were in hardship. A lot of charges may have put you in hardship perhaps.

But you really have to be struggling with more outgoings then income to be classed as in hardship. Many people think they are in hardship, but still have the money to pay a £70 sky bill, £40 mobile bill and £100 month on gambling websites etc etc and going overdrawn because of this, this is not hardship (ive seen it !)

Thanks, so should I appeal their decision or go straight to the ombudsman do you think?

BTW, we can't afford SKY TV, my mobile is PAYG averaging a £iver a month and I don't gamble or frequent the local ale-house. Every penny (and more) is needed for food and shelter.

Thanks again, but what should I do now?

Premier_2

Harry_Potless wrote: »

I wrote to my bank and got a list of all the charges they had made.

When I got the information, I drafted and forwarded a request that they consider my claim for a refund of the same, despite the High Court judgement in the banks' favour. That claim being based upon my current and recent (for some years) financial hardship.

The bank has replied stating that WHEN THEY MADE THOSE CHARGES it is their opinion that they had no evidence of financial hardship (even though I was in financial hardship for much of that time - as evidenced by my going overdrawn and requesting overdraft facilities, which were denied) so they will not refund the charges.

Does the "Financial Hardship" rule refer to my obvious financial difficulties now or my, arguably, less obvious financial difficulties when I incurred the charges?

Thank you.

Please refer to the sticky above relating to Financial Hardship Oonline Resources which explains what is considered Financial Hardship as far as lending is concerned.
https://forums.moneysavingexpert.com/discussion/2428497

Note that the banks are under no obligation to refund any charges, even to those who are in financial hardship.
All lenders that subscribe to the relevent code are expected to "deal quickly and sympathetically with things that go wrong and act sympathetically and positively when considering a customer’s financial difficulties"

Based on the experiences of others, some that are in financial hardship may be given a refund of some recent charges and perhaps relief from charges for perhaps a month or so in the future. However, banks rarely, if ever, consider a refund of charges for those that were in financial hardship historically as it will not have any positive effect of that past hardship now.

Similary, banks also more often than not do not refund historical charges (e.g. those older than 6 months) to those that are in current, genuine, financial hardship as these historical charges are not further burdening the current financial hardship the customer now finds themselves in.

Premier_2

Harry_Potless wrote: »

My rent is just shy of £300 per week and my total household's benefit payment is £172, hence my financial difficulties....

Well a refund of any bank charges is not going to help you long term is it?

If you are paying £1300 per month rent with a total household income of just £745.33 then you are currently on a one way journey to bankruptcy.

To change course, I suggest you post your SoA on the DFW (Debt Free Wannabe) board where I am sure you will receive help in dealing with your debts

Harry_Potless

Premier wrote: »

Note that the banks are under no obligation to refund any charges, even to those who are in financial hardship.

Thanks for the reply.

In a nutshell, then, does that mean there is no point in my spending more time in appealing their decision and/or referring it to the ombudsman?

Is the refunding of charges purely down to whether or not a bank is inclined to do so (i.e. are such claims wholly unenforceable)?

Premier_2

Harry_Potless wrote: »

Thanks for the reply.

In a nutshell, then, does that mean there is no point in my spending more time in appealing their decision and/or referring it to the ombudsman?...

In a nutshell, correct.
The FOS cannot force a bank to refund charges correctly applied, but can only request a bank to review again a decision it has already made.

Post your SoA on the DFW board and let's start getting you some meaningful help you clearly need in addressing your outgoings being excess of your incomings