What can we do if we are on benefits (merged)

CrystalGecko76

Well, I have just recieved a letter from NatWest and this is what they say,

"Following our review of the information you have provided, we have determined that you do not fall within our criteria which classify "Financial Hardship". Therefore, at present we will not look to take your case further."

Um...what is their criteria? Surely it should be my criteria - I am on benefits & before that was on very low income. A loan was put in place to cover the bank charges which left me over £1500 overdrawn!

Now what with the shake up of Benefits/Incapacity in the news I am more worried then ever.

Do you think they are saying this because they just don't want to pay up or is it really that I don't qualify. I worked it out that after all my expenses I have about £5 left, so if something unexpected were to come up I am likely to go overdrawn. Sometimes it is over a weekend and lasts untill about a Tuesday/Wednesday when my benefits go in again. They then charge me £28 for that and if any DD or SO fails to go through a further £35 is charged. This leaves me financially worse of the next month, even if I am careful. In October last year they took nearly £280 of charges...yet they say I am not in financial hardship...oh yes out of £398 a month I can really afford to loose £280!

What should I do now? I have got in touch with the FOS & CAB but am told these are not very helpful either. I nead this money sooner rather than later - and who is to say that this test case will work in anybodies favour.

Plus the bank said their charges were fair & lawful! I think I have about as much chance as a snowball in hell of getting anything back.

Are we completely sure that this reclaiming business is fair & legal because I am seriously having my doubts! and if so who can step in and help me? I can't afford to go to court so it looks like I have lost already.

Please can someone advise...
Crystal

It doesn't look like I will be getting any money back from my bank and my future is looking bleak too!

techspec

The FOS told me that if you were on means tested benefits, you qualified.

However, they are not paying out anyway, even on hardship cases, so you might aswell just wait for the test case outcome.

Twinkly

CrystalGecko76 wrote: »

Well, I have just recieved a letter from NatWest and this is what they say,

"Following our review of the information you have provided, we have determined that you do not fall within our criteria which classify "Financial Hardship". Therefore, at present we will not look to take your case further."

Um...what is their criteria?

The general criteria seems to be that you are not judged to be in Financial Hardship unless you can not afford basic utilities or are facing repossession of your home. Source here:

Banks Flout Rules On Hardship Cases

To clarify though I would write to the bank demanding their official definition of Financial Hardship.

CrystalGecko76 wrote: »

Now what with the shake up of Benefits/Incapacity in the news I am more worried then ever.

ESA (Employment Support Allowance) and the new rules etc do not come into force until October 2008. Incapacity Benefit will continue to be paid under the same criteria as before until then. It is pointless to worry right now and use this time to gather as much information as possible.

CrystalGecko76 wrote: »

...oh yes out of £398 a month I can really afford to loose £280!

Are you sure you are claiming all the benefits you may be entitled to ? After 4 years on IB you have probably checked all your entitlements anyway so I make no assuptions here . I would suggest that you take a look at https://www.entitledto.co.uk and input your details just to make sure though. I have claimed IB for 9 years. I discovered recently from the site that I am technically entitled to a top up of Income Support of £14 per week although it wont be claimed for valid and personal reasons.

CrystalGecko76 wrote: »

What should I do now? I have got in touch with the FOS & CAB but am told these are not very helpful either.

Write to the bank and request their definitive statement of Financial Hardship.

The reclaiming business is fair although the legality has remained subject to interpretation by the courts thus far hence there is to be a test case held in high court. If it were immediately and unquestionably deemed illegal then the very first case of reclaiming charges would have been thrown out of court. It wasnt and here we are today waiting on a test-case to decide once and for all.

If techspec is correct and you are considered to qualify if in receipt of a means tested benefit then I advise, if you dont already know, that Incapacity Benefit alone is not a means-tested benefit. However housing benefit and income support are means tested. If you receive these because you are on IB, and the criteria stated is confirmed as correct, then you should qualify as a Financial Hardship case. Either way you will need a statement from the bank to clarify their criteria before you can proceed to complaint to the FOS on the grounds of Financial Hardship.

There is another option on the grounds that you dont qualify specifically as a Financial Hardship case. The FOS leaflet on the subject of reclaiming bank charges has an interesting point of note. The FOS are considering all aspects of complaints about bank charges and not just the lawfulness of them. Basically if you consider your bank has acted unreasonably in charging you excessively at all for any other reason (low static income ? ) then you still have grounds for complaint that will be considered and dealt with as usual. Simply explain in full if and why you think it was unreasonable to charge under the circumstances and not on the lawful aspect alone.

Whichever nature of complaint you decide on then proceed to the Financial Ombudsman. Information here how to go about this:
Financial Ombudsman Service

Good luck

techspec

At the end of the day though, the fact still remains that being accepted as a financial hardship case actually means nothing. We were conned.

They are still awaiting the test case result if you are a financial hardship case. The best you can expect, is that they may lend you some money to see you through.

I have a case for a friend accepted as financial hardship. It went to the FOS, and they have now put it on hold, and told the bank to make sure he is given help if needed. They offered an increased overdraft. More debt, that still has to be repaid if the test case is not succesful.

Hardship cases will be handled as normal - thats what we were told!! Utter nonsense, designed to shut us up.

Twinkly

Techspec I see what you are saying, agree it is dire, and can only comment that perhaps an increase in overdraft may be acceptable to some people if they are truly in desperate need.

techspec

True, overdrafts have helped me out many a time. Just not what was said at the time.

The test case is almost upon us now anyway, so fingers crossed. I only have one case that will be affected - a closed account i forgot about at Barclays worth about £500. Fortunately, i got most of my bank accounts done before the test case announcement, and then moved onto credit cards.

I just don't like to see others lose out, where many of us have succeeded. I hope everyone gets all their money back, and gets the fresh start i have been given!

So good luck all!

Twinkly

techspec wrote: »

So good luck all!

And good luck to you

shellnkeeley

I have just been reading through the site and found something saying that if you were on benefits you may be able to claim your charges back, was wondering if anyone had any luck doing this?

mazzapeeps

hi can anybody help me i am in the middle of a very sticky problem with my bank i am claiming back my charges and have reported them to the ombudsman as i am on disability benefit i was charged on the 20th of December 58.00 for being over drawn by 7.00 now its up to 190 pounds i have rang them to try and sort this out but i am getting now wear i have had a letter saying they were within there rights i have told them i wont be able to live this month they said its your own fault and there will be more charges added the longer i don't pay any money in by the time my money goes in to my account i wont have any money to live on i have rang the dhss they said they shouldn't be charging me and to ring them back but when i did they left me on hold for 15 mins then said theres nobody to speak to at the moment and to ring back i am terrified its going to be a£1,000 before i know were i am

borgbaiter

hi

banks shouldnt take your benefits but they do. go back to the benefits people and say the bank wont comply with the law and can they pay you by post office giro. if they refuse ask to speak to a manager. if they still dont agree maybe a white lie of theyve closed your account. it wont make the charges go away but hopefully you can buy food and stuff.

until the OFT case is sorted the banks wont do anything to help.

Borgbaiter