Natwest have asked me to name a figure for compensation, what should I ask for?

JoshE

I recently (2 months ago) took out a new credit card with less interest and payed off my current credit on the advice of my bank. Once the first credit card had been payed off, it disappeared from my online banking list.

A few months later I received a late payment fee notice and assumed it was for my latest credit card, so I proceeded to log in online and pay that account. A few days later I received another late payment fee notice, this time I rang the bank up and they assured me this letter was sent in error. Then a month later I received another late payment fee notice and just assumed it had been sent in error, a few days after this I got a letter saying to ring them immediately about my account.

Basically I had payed the account off but they had not closed it, in this time I built up interest and incurred late payment fees, but because the account was no longer online and they had failed to carry on sending me paper statements I had no idea the account was still open, thinking it had been paid off.

Long story short Natwest have admitted it was their fault and have settled the account, and are removing the late payment markers from my credit score.

But the thing is they have offered me compensation... but asked me to name a figure...

So what should I ask for?

Bearing in mind since the late payment markers where unknowingly (to me) on my credit check, I have applied for finance and have been refused on several occasions, therefore impacting my credit score further.

InsideInsurance

JoshE wrote: »

Basically I had payed the account off but they had not closed it, in this time I built up interest and incurred late payment fees, but because the account was no longer online and they had failed to carry on sending me paper statements I had no idea the account was still open, thinking it had been paid off.

Long story short Natwest have admitted it was their fault and have settled the account, and are removing the late payment markers from my credit score.

But the thing is they have offered me compensation... but asked me to name a figure...

So what should I ask for?

Bearing in mind since the late payment markers where unknowingly (to me) on my credit check, I have applied for finance and have been refused on several occasions, therefore impacting my credit score further.

If you paid it off how is there interest to build up?

Unless you suffered financial loss then you are looking at a basic inconvenience figure and the FOS guidelines are http://www.financial-ombudsman.org.uk/publications/technical_notes/distress-and-inconvenience.htm

Realistically? You'll be lucky to get 3 figures and more realistically around £50 given they've already corrected the issue and you suffered no actual loss

SuperHan

That said, nothing wrong with going a bit higher and pushing your luck, then negotiating down.

Possibly say for the above reasons (applying for credit etc etc) then you think £250 is appropriate. By all means, go higher if you feel comfortable.

They may say yes, or counter with another offer, but worth trying.

As said above, it's unlikely you'll get much more given that there was no financial loss.

JoshE

I think the interest was from the month prior to paying it off, so it hadn't been added at the time of paying it off.

JoshE

Yeah I think mine falls under the "moderate (under £500)" category, e.g. The business only sorted out a minor problem after the consumer had written and phoned a few times – causing frustration and unnecessary inconvenience.

So do you reckon I should say £500 and chance it?

stator

Personally I think they would reject £500.

callum9999

stator wrote: »

Personally I think they would reject £500.

I don't think there's any doubt about it, there's no way in Hell the OP is getting given £500.

If it was me deciding what they could get and they proposed a £500 payment, I'd struggle not to laugh in their face and then offer them nothing. I'd imagine Natwest would be slightly more diplomatic however and propose a reasonable counter offer!

I'd personally ask for £100 and settle for £50.

InsideInsurance

JoshE wrote: »

I think the interest was from the month prior to paying it off, so it hadn't been added at the time of paying it off.

So in other words there is a slight element of your own fault given you, in theory, should know that paying off one month in full doesnt clear the account if you've been having a rolling balance.

Clearly there were other factors involved if there were no statements at all generated etc.

You could try for £500 but you could annoy them and make them offer you £10. Better really to go for a much more reasonable figure.

The FOS has updated the linked page recently, it used to have stepped amount from £25 to £250 and whilst the page is gone you were much lower down the scale.

From personal experience Natwest are relatively generous for things that are a pain but ultimately didnt cause any real damage.

g6jns_2

JoshE wrote: »

I recently (2 months ago) took out a new credit card with less interest and payed off my current credit on the advice of my bank. Once the first credit card had been payed off, it disappeared from my online banking list.

A few months later I received a late payment fee notice and assumed it was for my latest credit card, so I proceeded to log in online and pay that account. A few days later I received another late payment fee notice, this time I rang the bank up and they assured me this letter was sent in error. Then a month later I received another late payment fee notice and just assumed it had been sent in error, a few days after this I got a letter saying to ring them immediately about my account.

Basically I had payed the account off but they had not closed it, in this time I built up interest and incurred late payment fees, but because the account was no longer online and they had failed to carry on sending me paper statements I had no idea the account was still open, thinking it had been paid off.

Long story short Natwest have admitted it was their fault and have settled the account, and are removing the late payment markers from my credit score.

But the thing is they have offered me compensation... but asked me to name a figure...

So what should I ask for?

Bearing in mind since the late payment markers where unknowingly (to me) on my credit check, I have applied for finance and have been refused on several occasions, therefore impacting my credit score further.

If you exhaust the bank's own complaints procedure and then take it to the regulator it costs the bank a minimum of £300 to have complaint adjudicated. That is before any compensation is paid. Therefore simple economics suggest asking for £200 to £300 should get a result.

dazza.mk

g6jns wrote: »

If you exhaust the bank's own complaints procedure and then take it to the regulator it costs the bank a minimum of £300 to have complaint adjudicated. That is before any compensation is paid. Therefore simple economics suggest asking for £200 to £300 should get a result.

That's assuming its the same team as deal with FOS complaints and therefore know (or care) about the FOS fees.

InsideInsurance

g6jns wrote: »

Therefore simple economics suggest asking for £200 to £300 should get a result.

Thankfully most large corporations dont decide complaints on economics