Seeking help with reclaim Lloyd bank charges

truman76

After reading the section about reclaim unfair bank charges, I decided i would contact my bank as I felt I have a strong case. Here's a summary of what I put to them.

In a nutshell, since Nov 11 I've been in my overdraft (4 figure sum) I've paid total in excess of 1700 in od usage fees and interest alone. Unpaid fees only a few times maybe 3 or 4. I'm still in this massive overdraft to this day and struggling to clear it yet every month im paying out around 40 to 60 pounds in charges. Since 2011 I've separated from my family (divorce pending) my income has decreased due to going part time thru stress and pressure of work, I've used payday lending around 44 times during this period and I struggle to meet payments. I get almost daily text alerts from the bank saying in going to go over my od limit and therefore have to scrimp and find money to put into my account before 3.30pm deadline.

My situation is very easy to see and prove, so I wrote to Lloyds using the template, included all my calculations after going thru all my statements and waited for their response.

After I sent off the letter, I received an email asking get me to contact then, this was about 4 days later. I spoke to a guy over the phone who said he would be dealing with my case. From the outset, he made it quite clear that these bank charges I'm seeking, we're fair and just upon the basis of the agreements terms and conditions of my bank account. I acknowledge it but I was pleading about fairness and hardship, reitterating the facts of my case, which even he could see And seemed sympathetic.

Near the end of the call, again he stated (in not so basic terms) that the bank had not done anything wrong and that the charges were part of t&c's. He then said he would review it over the weekend/week and will be in contact.

I've yet to hear back, but was wondering what my next approach should be, as I'm getting the feeling they are going to pay hard ball. Any tips or advice would be great.

In addition to above, after using the calculator, including interest it's about 2500 I'm claiming back, I've even said that this would go a long way in clearing my od which I could then reduce. Ultimately that's what I wanted to do and not exactly have the money for my own gains.

dunstonh

After reading the section about reclaim unfair bank charges, I decided i would contact my bank as I felt I have a strong case. Here's a summary of what I put to them.

You will also know from reading that article that banks no longer have to consider complaints about unfair bank charges and the FOS will no longer take on complaints about unfair charges.

General guidance on bank charges is not to mention the word unfair anywhere as that is more likely to result in rejection.

After I sent off the letter, I received an email asking get me to contact then, this was about 4 days later. I spoke to a guy over the phone who said he would be dealing with my case. From the outset, he made it quite clear that these bank charges I'm seeking, we're fair and just upon the basis of the agreements terms and conditions of my bank account. I acknowledge it but I was pleading about fairness and hardship, reitterating the facts of my case, which even he could see And seemed sympathetic.

Near the end of the call, again he stated (in not so basic terms) that the bank had not done anything wrong and that the charges were part of t&c's. He then said he would review it over the weekend/week and will be in contact.

This is all a result on you mentioning unfair. Luckily, they do appear to be looking at financial hardship in your case. hopefully, you painted a grim picture, mentioned defaults/arrears that you have and bills you cant pay and your spending habits dont show luxury items like Sky tv, excessive mobile phone bills etc.

I've yet to hear back, but was wondering what my next approach should be, as I'm getting the feeling they are going to pay hard ball. Any tips or advice would be great.

To be fair, the banks do seem to be very good on genuine hardship cases and quite generous. They take a harder approach with self inflicted spending beyond means.

truman76

OK great thanks for that. You've help me understand it a lot better and at least I know some dos and donts. The hardship route is very evident and I've even mentioned some other senarios to them which again are supported by my statements. I don't have any luxury or wild spending to show on my account, I don't even have much in the way of utility bills either as I've already stated, I couldn't meet their monthly direct debits hence I didn't set up any and have had to pay when I can to catch up on arrears. Hopefully they will take all this into consideration.

7yearnightmare

I have just had a phone call from my bank (Lloyds) after submitting a similar letter. I have been in an IVA since September 2008 - extended due to periods of unemployment and SSP. In this time I have been caught in a never ending cycle of bank charges. Charges that have put me into overdraft - when I am not entitled to have one - and then I have been charged unplanned overdraft fees.

Getting to the point - the person I just spoke to told me that the bank was not obliged to negotiate their charges and that on review of my account they could see that I had frequently used my card for "non-essential purchases - such as Boots and Pret-a-Manger". Now goodness knows when I last resorted to spending £5 on lunch but is the odd sandwich and purchase of a moisturiser from Boots classed as miss-management of funds bearing in mind that they have deducted just over £3000 in bank charges since the start of my IVA? They have offered to waive this months unpaid fees of £50. Should I just accept this keep clinging on by the skin of my teeth? My IVA is due to complete in June - so at long last there is light at the end of the tunnel.

Nasqueron

7yearnightmare wrote: »

I have just had a phone call from my bank (Lloyds) after submitting a similar letter. I have been in an IVA since September 2008 - extended due to periods of unemployment and SSP. In this time I have been caught in a never ending cycle of bank charges. Charges that have put me into overdraft - when I am not entitled to have one - and then I have been charged unplanned overdraft fees.

Getting to the point - the person I just spoke to told me that the bank was not obliged to negotiate their charges and that on review of my account they could see that I had frequently used my card for "non-essential purchases - such as Boots and Pret-a-Manger". Now goodness knows when I last resorted to spending £5 on lunch but is the odd sandwich and purchase of a moisturiser from Boots classed as miss-management of funds bearing in mind that they have deducted just over £3000 in bank charges since the start of my IVA? They have offered to waive this months unpaid fees of £50. Should I just accept this keep clinging on by the skin of my teeth? My IVA is due to complete in June - so at long last there is light at the end of the tunnel.

Banks won the "unfair charges" court case - you can ask about current financial hardship where the bank can help get you out of a spiral but old charges they don't have to consider.

If you are clinging on by the skin of your teeth then it would be logical that you would be making a sandwich with a loaf of economy bread and filler and could make food for the week for under a pound, not spending 3-4 quid on a single sandwich from a retailer. Similar with moisturiser - if you have a medical need for it get it on the NHS, if you don't it's a luxury. Banks will try and help you (as they are supposed to) but it doesn't help your case if you are (in their eyes) wasting money on frivolous non-essential spending

dunstonh

Charges that have put me into overdraft - when I am not entitled to have one - and then I have been charged unplanned overdraft fees.

Charges that would not have occurred if you have had controlled your spending and/or asked the bank first.

Getting to the point - the person I just spoke to told me that the bank was not obliged to negotiate their charges and that on review of my account they could see that I had frequently used my card for "non-essential purchases - such as Boots and Pret-a-Manger". Now goodness knows when I last resorted to spending £5 on lunch but is the odd sandwich and purchase of a moisturiser from Boots classed as miss-management of funds bearing in mind that they have deducted just over £3000 in bank charges since the start of my IVA?

Goodwill refunds for people in financial hardship are just that. The banks do analyse spending habits to see if you are genuinely in current hardship. A £5 lunch at pre a manger is not consistent with hardship. Boots is less convincing as it could be anything essential but if they know it was moisturiser than perhaps that is the reason.

They have offered to waive this months unpaid fees of £50. Should I just accept this keep clinging on by the skin of my teeth? My IVA is due to complete in June - so at long last there is light at the end of the tunnel.

You may have had more success before you entered the IVA. However, a repayment process that you can afford is not financial hardship.

Remember you need to persuade the bank of your hardship for them to consider what they will do. You are not doing a good job. That may be down to communication but it could be because you are not in genuine hardship.

financial_ombudsman_representative

truman76 wrote: »

After reading the section about reclaim unfair bank charges, I decided i would contact my bank as I felt I have a strong case. Here's a summary of what I put to them.

In a nutshell, since Nov 11 I've been in my overdraft (4 figure sum) I've paid total in excess of 1700 in od usage fees and interest alone. Unpaid fees only a few times maybe 3 or 4. I'm still in this massive overdraft to this day and struggling to clear it yet every month im paying out around 40 to 60 pounds in charges. Since 2011 I've separated from my family (divorce pending) my income has decreased due to going part time thru stress and pressure of work, I've used payday lending around 44 times during this period and I struggle to meet payments. I get almost daily text alerts from the bank saying in going to go over my od limit and therefore have to scrimp and find money to put into my account before 3.30pm deadline.

My situation is very easy to see and prove, so I wrote to Lloyds using the template, included all my calculations after going thru all my statements and waited for their response.

After I sent off the letter, I received an email asking get me to contact then, this was about 4 days later. I spoke to a guy over the phone who said he would be dealing with my case. From the outset, he made it quite clear that these bank charges I'm seeking, we're fair and just upon the basis of the agreements terms and conditions of my bank account. I acknowledge it but I was pleading about fairness and hardship, reitterating the facts of my case, which even he could see And seemed sympathetic.

Near the end of the call, again he stated (in not so basic terms) that the bank had not done anything wrong and that the charges were part of t&c's. He then said he would review it over the weekend/week and will be in contact.

I've yet to hear back, but was wondering what my next approach should be, as I'm getting the feeling they are going to pay hard ball. Any tips or advice would be great.

In addition to above, after using the calculator, including interest it's about 2500 I'm claiming back, I've even said that this would go a long way in clearing my od which I could then reduce. Ultimately that's what I wanted to do and not exactly have the money for my own gains.

Hi Truman76

This sounds like a really tough situation to be in. I hope some of the comments already posted have been helpful.

When we look at complaints about bank charges we can look at whether the charges were applied correctly. We would expect the business to help you as soon as you make them aware that you’re struggling.

Once you've received an answer from Lloyds about your complaint if you're still unhappy then we can have a look at what's happened.

I can also see that you've had some problem making payments to payday loan companies. If you're struggling to pay, it's always best to let the business know. We would expect them to freeze the interest and charges and set up an affordable repayment plan for you. If you're having any problems with this then get in touch and we may be able to help.

You can send any enquires to [EMAIL="complaint.info@financial-ombudsman.org.uk"]complaint.info@financial-ombudsman.org.uk[/EMAIL]and put "MSE referral" in the subject box.

Kind regards,

Amy

truman76

Hi amy, thanks for your reply. I got a call from lloyds the other day. Basically they said theyve reviewed my account, and can see that over the past 4 years or so, thats ive paid obviously the od usage fees and interest totaling to what I had accounted for, however the unplanned charges totaled only £55. They said they would repay me this amount and also waver next months usage and interest charges which would equate to about £60, if that was acceptable. I said it wasnt really but they insisted that their charges were correct as they are in accordance to their regulations. They said they would not refund them for this reason. They then said that they would send me info and refer me to their customer service liason something or other to discuss my finances moving forward but basically said thats all they could offer. I asked if by accepting their aforementioned refund if this was the matter dealt with as I was not happy with that, they said it wasnt final but I dont really know where I stand now. I kind of felt fobbed off by their call.

Anyhow im expecting a letter in writing from this and will see what it says. Ultimately, they dont seem to want to know despite everything ive said, so I guess ill be intouch soon.

With regards to the payday lending, their was one incident where I did get behind on a wonga loan, but luckily they did stop and freeze the loan and we worked out a way to pay it off. Im currently payday loan free im glad to report. Even thou lloyds can see all those transactions to/from them, they still dont seem to get my point, which is after over 4 years, I cant even get this od down and keep having to pay charges and interest. They havent even offered to stop or freeze that which I think its the least they should do. However im not a bank and I dont know their rules.

truman76

Ive received the letter from lloyds now, basically says, "reassured, no mistake was made" regarding the bank charges that ive been given over the years. I wouldnt have thought there would be, so is that it then? Even though im struggling week by week, cant get out of this overdraft and continuing overdraft charges rack up and take what little money i put in there every month, there nothing i can ask the bank for?

As we cant use the "unfair" word, it seems likely that i dont have a leg to stand on, cos it isnt fair in reality.

dunstonh

Ive received the letter from lloyds now, basically says, "reassured, no mistake was made" regarding the bank charges that ive been given over the years. I wouldnt have thought there would be, so is that it then?

They are confirming that there has been no error in applying the charges. That is one area the FOS can consider (incorrect application of charges). However, with you not disputing that, referring it to the FOS on that basis would not result in anything.

Even though im struggling week by week, cant get out of this overdraft and continuing overdraft charges rack up and take what little money i put in there every month, there nothing i can ask the bank for?

The bank have looked at your case and offer to refund you the unplanned charges and have waived the next months usage and interest charge. That is the sort of result you get nowadays if you are not in deep financial hardship. If you had arrears with water/electric/council tax etc then they would treat you as in deeper financial hardship. If the overdraft is not increasing but remaining steady then you are not in a spiral getting worse. The IVA is also a repayment method that allows you to clear debt and move forward. When that stops, you should be fine.

If you cannot persuade them of your hardship then that is going to be the final outcome.

Nasqueron

truman76 wrote: »

Ive received the letter from lloyds now, basically says, "reassured, no mistake was made" regarding the bank charges that ive been given over the years. I wouldnt have thought there would be, so is that it then? Even though im struggling week by week, cant get out of this overdraft and continuing overdraft charges rack up and take what little money i put in there every month, there nothing i can ask the bank for?

As we cant use the "unfair" word, it seems likely that i dont have a leg to stand on, cos it isnt fair in reality.

You can get "fair" treatment in genuine hardship, it's just the bank don't believe you are in that much of hardship due to your spending patterns - look through your account history - have you spent on luxuries/non-essentials that would suggest to the bank you are not on the breadline - if your spending at pret was years ago go back and argue that with them.

Otherwise I'd suggest going to the Debt-free parts of this forum to see people who are good at helping people make the most of their cash and getting out of debts