Reclaiming - can there be consequences? 1 October 2019 at 10:09AM edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges 5 replies 2.6K views

Raxxy

Hi,

I've got an anxiety about reclaiming bank charges that I hope you folks can help with.

I think I have a strong claim for bank charges going back several years, for hundreds of pounds. I lost my job, home, and everything else about 4 years ago, and since then have been slowly rebuilding, but frequently going over my OD limit. The crisis related to mental health, and I think I have a pretty strong case.

I'm worried though, that playing this card, divulging MH issues to the bank, may affect things in some way in the future. I'm looking forward to building a normal life again, and I don't want this to come back and bite me...

Rainbowgirl84

The Banks won the bank charges argument in Court a decade ago. However if you are in current financial difficulties you may get limited help and understanding from your Bank.

Raxxy

Well, I'm relying on this site's article - (as a new user I'm not allowed to post the link, sorry)
I'm in supported housing, have an overdraft of £1.8k, no assets and no income. That sounds like a claim, doesn't it?

But my question wasn't about the chances of success. It's about the knock-on effects. One of the reasons for my troubles has been a severe anxiety condition, so unsurprisingly.... I'm a bit anxious about it.

zx81

Raxxy wrote: »

I'm in supported housing, have an overdraft of £1.8k, no assets and no income. That sounds like a claim, doesn't it?

No. But you could ask them for help.

Raxxy wrote: »

But my question wasn't about the chances of success. It's about the knock-on effects. One of the reasons for my troubles has been a severe anxiety condition, so unsurprisingly.... I'm a bit anxious about it.

If you exhibit signs of vulnerability, the bank is obliged to take account of that. The practical upshot is that you are less likely to be offered credit or anything that will worsen your situation. They will also be more sympathetic to your circumstances and are likely to monitor your accounts more closely.

Raxxy

Thanks, that's just what I was after.

I'll leave it then. Maybe I could get a payout that would help me in the short term, but I'm on the way up and I don't want to regret it in the future.

Out of curiousity, I don't quite understand the luke-warm answers about the chances. From the MSE article, I tick 5/6 of the eleven criteria...?

SonOf

Well, I'm relying on this site's article - (as a new user I'm not allowed to post the link, sorry)

We know the article. It's mainly there for historic reasons but was slightly amended after the banks won the court case.

The crisis related to mental health, and I think I have a pretty strong case.

Are the bank aware of your mental health issues? If they are, then they are required to consider that. If they are not, then they won't know.

I'm in supported housing, have an overdraft of £1.8k, no assets and no income. That sounds like a claim, doesn't it?

Its not a claim. You are not alleging the bank is doing some wrongdoing. That is very much the wrong way to approach this.

You are effectively asking the bank for a goodwill gesture on the basis of financial hardship. This involves persuading the person at the bank that you are genuinely in current financial hardship and suffering because of it.

Some of the things you have mentioned will be things that the bank will take into consideration.

I'll leave it then. Maybe I could get a payout that would help me in the short term, but I'm on the way up and I don't want to regret it in the future.

No. You should contact them. Remember that financial hardship cases are reviewed by the complaints team. Not the call centre or the local branch. A financial hardship request isn't just about refunding charges. The banks have other solutions open to them. Such as suspending future charges for a period or putting you on a debt reduction plan. Often you get back no charges or if you do, its only those in the last 12 months. Only extreme cases tend to get charges going back further.

The bank will not penalise you for making the enquiry.

Out of curiousity, I don't quite understand the luke-warm answers about the chances. From the MSE article, I tick 5/6 of the eleven criteria...?

There is no set criteria. That is just an MSE thing. The banks look at each case on its own merits. Too many people think they are going to get back years worth of charges but in reality, it is usually 0-12 months worth. Also. the definition of financial hardship differs with different people. The banks check your spending habits and there have been cases where people shopping in Next or buying sandwiches at M&S have put in hardship requests and have quite correctly been rejected.

If you are in genuine current financial hardship then put in the request. You have nothing to lose.