Bank Charges Financial Hardship Disussion

A question about : Bank Charges Financial Hardship Disussion

This thread is to discuss the updated section of the Bank Charges News article on financial difficulties.

Please feedback here so that we can finesse the info.

Best answers:

• I helped a friend prove financial hardship, and Barclays wrote back saying "you will still have to wait until the test case is resolved". Its now with the FOS.
• I have written to both Lloyds and Alliance & Leicester regarding my bank charges and requesting they deal with the case now because of financial difficulty. I was separated last year (divorce now final), and left my job due to my current partner's new job which required us to move up north. So basically I have no income and am in both of my overdrafts. I haven't had any bank charges for a while (getting rid of ex-husband helped), but money is very tight while I'm looking for a job.
  Alliance & Leicester sent me a form and only gave me 10 days to return it. I had to list all my income and debts, and I did list my partner's income and debts on there as well. It looks fairly clear that even with our modest budget, we don't have enough to pay our bills and are going further into the red every month. I sent it a few weeks ago and haven't heard anything. Will be following up as soon as we are back from seeing family in the U.S. (which we really can't afford, but tickets were booked months ago!).
  As for Lloyds, the account I was making the claim on was my now-closed joint account with my ex-husband. They sent two identical form letters, one addressed to both of us, one addressed just to me. The letter rambles on for a few pages, but does promise to contact me within a week about my financial difficulties. No one has contacted me, and it's been well over a month. I've written them again saying I will go to the ombudsman if I don't get a satisfactory response in two weeks.
  Will try to keep this updated if anything happens. Hoping some others will join this discussion!
• I made an initial claim (HSBC) in July 2007 dated before the original FSA ruling. It was still, however, put on hold quoting FSA as was not dealt with until after the ruling.
  I have today sent a letter requesting that my case be looked at again both under 'hardship' guidelines and the fact the original letter/claim was submitted before the original suspension of normality.
  They'll also be getting a Debt Management Plan letter shortly so hopefully they will finally realise my financial situation!
  I will update when I get a response...
• I am currently defending a repossession action by my lender, having sent copy correspondence clearly showing this to both HSBC and HALIFAx, they both still refuse to action my claims against them!
• I just had my claim for hardship refused by HBOS.
  As I'm now unemployed, I have requested they send another I&E form to complete. Will keep posted.
• I have applied for a refund of bank charges some time ago. Have just found out it is possible to use financial hardship as a reason to get my case heard. Is there a draft letter out there that I can used to send to my bank, and is it worth doing it? I have read some of the postings and it doesn't seem to making any difference.
• I am have real trouble with RBS. I am a full time student and having difficulty with mortagage payments and other bills. I filled in a questionnaire that RBS sent me and they replied saying I dont fit the criteria.
  I then sent them more information on what difficulty I had, including partial mortgage payments, exceeding my overdraft limit, credit cards at their max and a demande of late payment form my factor. They still came back and said this was not enough to show financial hardship. A red letter from my factor came through demanding payment within 7 days, I forward this on and this was stil not enough.
  I was told that I would have to prove what action would be taken after the 7 day period had come to an end as it would have to be passed to a debt collection agency before they would reconsider my case. I contacted my factor on to request this information and they informed me that I will be passed to a debt collection agency. The following day I received a letter form Hacmy factor confirming this, along with a letter from the debt collection agency demanding immediate payment or further action would have to be taken. I forward both of these to the collection centre in Glasgow for them to issue a decision in my case.
  A few days later I called the collection centre and spoke to Anne who informed me that my case was now passed to Natwest to deal with, which I could not understand as my dispute is with RBS, not Natwest even though I understand they are affiliated. Anne would not provide a contact number for this department but did give me an address. I found a telephone number for this department, which was in Borumwood and so called them. I was them passed to another 3 different departments who knew nothing of my case. Finally I was informed that it was being dealt with in Edinburgh and I would not hear anything for 21 days.
  I felt I was being messed around and as this has taken so long to sort out, especially considering my financial hardship. I wrote a letter to the collection centre in Glasgow and also to the Edinburgh office informing them I would be contacting the Ombudsman and considering court action if the charges were not refunded within 7 days.
  On 15th July 2008 I received a call from RBS informing me that before my case will even be considered again I either have to be taken to court or evicted from my house. I told the caller that I thought this was ridiculous and will now be taking further action against the RBS.
  I feel that the RBS are being incredibly unfair in dealing with my case as I am in a case of financial hardship and have complied with every request in proving my financial status only to be faced with a new requirement for them to consider my case.
  Its now with the financial ombudsman so hopefull they'll be able to sort them out, esp after the clarification on financial hardship yesterday!
• I have a claim against Natwest going back to 2007 (just before the test case) which was put on hold. To add to my misery, I took my chequebook and cards into my branch to close the account. I was told I didn't need any confirmation that they had closed the account down but lo and behold, they didn't close the account straight away, a direct debit which I missed cancelling was presented, that incurred more charges which escalated out of control. I wrote immediately to state I was having financial hardship and would they look at my case again. They gave me a financial statement to complete which I did. I then got a letter from Natwest to say they agreed I was in financial hardship and would stop the charges on my account. I then wrote back to say that I had passed the debt (overdraft plus charges) to the Consumer Credit Counselling Service and they would be making a small payment off the debt each month. I also asked what was happening to my claim. I didn't get any reply and so I went to the Financial Ombudsmen Service as recommended. I got a letter stating that as Natwest had agreed to stop the charges being applied to my account plus the fact that Natwest were not pursuing me for the whole debt was sufficient action in the eyes of the FOS and that my claim should wait until the test case was resolved. However, I contacted them again once I read the waiver had changed and went through the whole thing again. I was told categorically by the FOS that the banks DID NOT have to look at your claim again and that in my case, because the bank had accepted a payment plan, they were under no obligation to take any further action. What does one do now?
• just got off the phone from glasgow collections centre - unless court action is taken against me then they will not consider financial hardship case - that's what I was told!!! Ridiculous!!! person on the phone was not even aware of the new changes to the waiver let alone had the office recieved any updated information about the changes to the waiver.
  Next step FOS but very irritating to hit a brick wall. last line of conversation,
  "...so I am to believe that unless court action is taken against me, Natwest will not refund any charges?"
  "(NATWEST) ...that is correct"
  "Thanks, bye!"
• I've put in my claim for the last 6 years couple of weeks ago. First Direct wrote back to say it's on hold and as I said I was in finanical difficulty, then I've a form to fill in. So that's done and sent yesterday. I haven't gone over my overdraft for a while, but that's coz I'm drawing money from my credit card, and this is reaching the limit, so soon I'll be scuppered. I just hope that they agree with me, and I can get something back.
  What is the time limit for replies, i.e. in case I need to contact the FSA to put my claim with financial difficulties?
• My sister has just called Abbey as she has about Ј1200 due in Bank charges if the courts rule they are unfair - anyway I told her to get on the phone as she is on incapacity benefit and ask about the financial hardship route - if it wasnt for me paying her credit card the stress of it all was driving her to an early grave!
  Anyway they have said that because its gone to court they are no longer dealing with cases ((I know this but was asking for the financial hardship route to be explored))
  They have offered her Ј60 but she doesnt know what for and said she will have to wait possibly another year.
  Can anyone please clarify - I know the case has gone to court and I know a decision is not expected for a long time but I thought new information given last week that if you were under financial hardship you could ask for your claim to be processed.?
• i have put in a reclaim for bank charges and like everyone else is awaiting the result, because of the mess that i owe the bank i cancelled all d.d etc, but they keep charging on my charges and my debt is growing. went to bank and they wont acceppt what i wanted to pay and now im getting letters saying they will transfer my debt to collection agency. when i try phoning regarding the letters they just want a ridiculous amount back and there is no way i can afford it , i just started work p.t recently but am still struggling and very stressed about it. what can i do , can they send me to collections or do they allso have to await result of the case , please please some advice. its the abbey and thy wont freeze account or deal with hardship
• was there any clarification on the hearing regarding the hardship route?
  what is classed as hardship?
  can the banks make any offer or do they have to make a certain % of the total charges?
• i wish i met the hardship criteria so my claim could be processed, i mean, im thankful i am in a good position obviously, its just the hold is so flustrating!
• Is there a template letter i can get for claiming hardship?
  Im owed Ј1000 (roughly) from nationwide and currently unemployed.
  Any help is greatly appreciated.
• This is the relevant extract from the FSA's waiver conditions that define hardship.
  https://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf
  
  Annex 2 – Dealing with complainants in financial difficulty
  
  1. The firm will be sympathetic and positive when considering any financial difficulties claimed by the complainant. Firms will not subject a complainant to harassment or undue pressure when discussing their problems.
  2. In making an assessment of financial difficulty the firm will take into account:
  a. evidence of changes in lifestyle, including loss of employment; disability; serious illness; imprisonment; relationship breakdown; death of a partner; starting a lower paid job; parental/carer leave; and starting full-time education;
  b. evidence of the following events:
• items repeatedly being returned unpaid due to lack of available funds;
• failing to make loan repayments or other commitments;
• discontinuation of regular credits;
• notification of some form of insolvency or court proceedings;
• regular requests for increased borrowing or repeated rescheduling of debts;
• making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
• repeatedly exceeding a credit card or overdraft limit without agreement (and, in this regard, where a complainant has incurred over Ј500 in unauthorised overdraft charges in the previous 12 months, that is to be treated as indicative of financial difficulty).

3. If during the handling of the complaint the firm becomes aware (including by notification from the complainant) that the complainant may be in, or heading towards financial difficulties, the firm will contact the complainant to outline their approach to financial difficulty cases and to encourage the customer to contact the firm if the customer is worried about their position. The firm will also provide signposts to sources of free, independent money advice.
4. The firm will make available to complainants straightforward information in plain English on the firm’s procedures and systems for dealing with customers in financial difficulty.
5. If it becomes clear to the firm that the complainant needs specialist assistance, the complainant will be referred promptly to a specialist team that deals with customers in financial difficulties, if one exists. The firm will give a phone number on all communications that will put the customer in contact with a named person or a team dedicated to dealing with cases of financial difficulty.
6. Where the firm does not have sufficient evidence to assess whether or not the complainant is in fact in financial difficulty, the firm will seek such further relevant information as is reasonably required to make that assessment. In the event that the firm reasonably requires relevant information to be provided by the complainant and the complainant does not provide the requested information within a reasonable period of time, the firm shall not be obliged to treat such a complainant as being in financial difficulty.
The Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS, United Kingdom Telephone +44 (0)20 7066 1000 Fax +44 (0)20 7066 1099 Registered as a Limited Company in England and Wales No 1920623. Registered office as above

• I was recently toldby Lloyds TSB that i was going to be classed as a hardship case following a recent change of jobs and therefore a delay in salary payment thus resulting in bank charges...however i was told i would be classes as hardship and have today been told that yea i may be classed as hardship but i am still on hold regardless of what i think the fsa say about hardship cases, the lady on the phone did say that she would send me out an income and expenditure form never the less and i was to fill this in and send it back...so were do i gofrom here?? i have already filled my complaint with the FOS and got a letter of receipt from them on the 21st july 08 acknowledging the info i sent them and saying they would be in touch. Does anyone know how long it normally takes..im sur ei am understanding it correct in that hardship cases are meant to be not on hold as such??