clarification of genuine hardship cases

novelli

If you are in financial difficulties and are considered a hardship case then the banks MUST still continue with your claim!!!!
getting them to accept this is of course another story!!!!

i ended up fillking in the complaint forms on the ombudsmans site and they took 6 weeks to contact the bank telling them this, the bank have now gone over the deadline the fos gave them to resolve this so now all paperwork has to go back to FOS so they can take it to the next stage (whatever that is)!!

So i would say fill in the forms on FOS site and keep going!!!! do not let them get away with this!!! they are wrong. Also email the FSA to tell them what halifax have been telling u.

daren-marc

Hi Folks,

New to the furom but been receiving the emails for quite a while! I have a question I would like help with if possible:

In cases of Genuine financial hardship (i.e. facing a real threat of repossession), is it true (as read on thisismoney.co.uk/bank charges) that the current FSA waiver does not apply?

Both my partner and myself are trying to claim nearly £6k from Halifax (£3,600) and Lloyds TSB (£2,350).

Any help is greatly appreciated.

Diolch am fawr!

Elise1309

I believe that the Test Case stay/waiver procedure was only allowed on the understanding that cases of genuine hardship would still be considered ie the banks are not supposed to apply for a stay in such circumstances.

I also believe that the 'stay' situation is supposed to be regularly reviewed - in theory, if the banks have not been keeping to the terms under which it was granted it could be lifted (though I wouldn't rely on that!)

Someone on here advised that anyone in financial hardship not just appeal to the court to lift the stay, but also write to their bank with 'Financial Hardship Case' in huge letters on the front of their claim - that way they can't pretend they didn't know.

Northampton online claims will refer on cases to the local court if you can provide evidence of FH, (this happened to me) but you will then have to persuade the local court of your situation also.

daren-marc

Cheers Elise,

I think as I have enclosed a letter from our lenders solicitors with my letter, this shoudl be enough to bring our financial situation to their attention! I won't hold my breath though!

)

chipbeck

daren-marc wrote: »

Cheers Elise,

I think as I have enclosed a letter from our lenders solicitors with my letter, this shoudl be enough to bring our financial situation to their attention! I won't hold my breath though!

)

I'm not so sure you'll be successful but good luck. You need to understand that these people are not really bothered. Barclays are taking me to court for a reposession next month yet I have an outstanding claim 'stayed' against them for 3.5k. Wonder if they'll help me out? Think not!

oweny

Section 187 of the Social Security Administration Act prevents vilnerable social security claimants from giving up or putting their benefit money at risk by assigning it over to a third party in settlement of a debt. It also ensures that benefit does not automatically pass to a debtor,for example,to a trustee in cases of bankruptcy, by making it clear beyond doubt that the Secratery of State's obligation to make payment of benefit is only towards the beneficiary and thar a trustee could have no interest in any entitlement of a debtor to receive social security benefits.

However, the Social Security Administration Act is not intended to prohibit the application of bank charges. Once a benefit payment is credited to a customer's account it merges with the existing account balance,whether this is overdrawn or in credit. If the account is overdrawn, the banks are fully within their rights to offset the benefit payment against the overdraft.
Under the terms set out in the Banking Code,banks are obliged to deal with all cases of financial difficulty sympathetically and positively. Customers who find themselves in difficulty should speak to their account provider about their needs on order to come to an arrangement to deal with their debt and safeguard their benefit payments.
Yours sincerely
JAMES PLASKITT MP
PARLIAMENTARY UNDER SECRETARY OF STATE

oweny

Sorry meant to add any comments and advise would be appreciated as I intend replying to him
Oweny

buff-tom

Has anyone out there managed to get through the rubbish that Barclays comes up with?

I tried reclaiming through letters, was about to follow through with court case when test case went live so thought there was no point.

Then I noticed the Hardship so spoke to them cited the waiver to them i.e. they have a responsability to continue to deal with hardship cases.

2 and a half months later no responce now refusing to tell me any more other than speak to my own bank (they have closed my account) and await outcome of test case.

I have prepared a small claim form and have spoken to FOS.

Any ideas or info welcomed.
:beer:

castlebest

The court route is pretty much blocked at the moment, your case will be stayed but if you have proof of hardship going through the FOS is still getting results.

If you do decide to use the court route but wait until the test case is over it might be worth filing your claim now as this will mean you start to get 8% statutory interest added to it until this mess is over

pete

novelli

But why are the banks being allowed to get away with this!!!!!!!!!!!!!
FSA told me that they are duty bound to continue with cases of hardship, yet all we hear is that they are not doing so!!! But they seem to be getting away with it!!
Is there not something we can collectively do about this, as its grossly unfair that they can just ride rough shot over everyone but no one seems to do anything about it!!