Help Needed re: Current Financial Hardship!

Simon36

Hi All


I recently requested a refund of my wife and I's bank charges (unplanned overdraft fees, overdraft interest and unpaid DD's) from Lloyds in relation to 2 bank accounts dating back many years. The worst period of which was 2009-2010. The total refund requested was circa £4,300 and £1,700 in relation to these 2 accounts, including interest, so quite substantial. One of the worst charges was £358.53 in March 2010. I claimed financial hardship and I believe that I have enough proof to show that at the time in 2009 and 2010 etc, we were in severe financial difficulties. Lloyds have, unsurprisingly, rejected the complaint and have offered a mere £50 on each account as a gesture of goodwill. They rejected the complaint on the basis that we are no longer in financial hardship and have been better off since circa 2011. This is kind of true, or at least we are in a better situation now that we were previously due to loving parents agreeing to pay off some of our debt. However, and this might just be me, but I don't see the relevance of our current financial hardship. The point is that we were in severe financial hardship in 2009-2010 when the main charges were being applied and so surely it is irrelevant that we are slightly better off now? Are they saying that if I had complained in 2009-2010 then I would have been successful but I can't be successful now? This cannot be right as I have 6 years in which to bring a claim. Has anyone else had this issue and have you persuaded them otherwise? My next step is the FOS and so any thoughts gratefully received. Thank you in advance for your help!

dunstonh

loyds have, unsurprisingly, rejected the complaint and have offered a mere £50 on each account as a gesture of goodwill.

You can see why they rejected. Your charges go back to 2009. They are not current. It is rare for any bank to go back that far. Most that refund look at the last 6-12 months. As well as looking at future charges. Such as suspending all future charges for the next 6 months. Refund is not the only option.

They rejected the complaint on the basis that we are no longer in financial hardship and have been better off since circa 2011. This is kind of true, or at least we are in a better situation now that we were previously due to loving parents agreeing to pay off some of our debt. However, and this might just be me, but I don't see the relevance of our current financial hardship.

And that is they key. You are not in current financial hardship.

The point is that we were in severe financial hardship in 2009-2010 when the main charges were being applied and so surely it is irrelevant that we are slightly better off now?

The offer of help from the bank is a goodwill gesture to help you get out of a cycle of debt and not suffer hardship. That clearly is not the case for you now.

re they saying that if I had complained in 2009-2010 then I would have been successful but I can't be successful now?

correct.

My next step is the FOS and so any thoughts gratefully received.

The FOS have no power to make the banks refund any charges unless it is incorrect application (i.e. charged incorrectly). All they will do is encourage a bank to help if you are in current financial hardship.

The charges are not unlawful and not unfair. The FOS even say this on their website. Any refund the bank makes is goodwill. Its hard to see how the FOS will be able to help you.