Charges Made Me O/drawn And Ate Up My Dss Benefits

[add-enuff]

Hi this is my first post except for the one in the "welcome/hello" section

I'm so relieved that this site offers me some hope at reclaiming some/all of the bank charges which have caused me so much grief.

But I have a few Q's sorry it's so long and complicated :

I've been with Nat West for about 7yrs

1)I ran into trouble when I was working Part time (approx 3yrs ago)as my salary was erratic and Direct Debits, cheques etc sometimes went over my Overdraft limit (I had a basic current acc' which they swithched to ADVANTAGE GOLD ACC' with the associated monthly charges just for having the account, without asking me first).

The bank charges for unpaid DD's cheques etc made my account keep going further overdrawn, not my actual spending.

Nat West extended the overdraft limit to £3000.00. When I stopped working due to ill health my DSS Benefits did not cover the outgoings on the account and the Overdraft repayments.

So in 2004 they aggreed a 5 year loan of £2850.00 to Consolidate my overdraft with intrest at 13% per annum (APR 24.1%).
The total repayable is £6292.00 comprising of:

Loan: £2850.00
Intrest:£2478.80
Loan Protector Insurance:£964.00

TOTAL: £6292.80

I took out Loan Protector Insurance at the same time as the loan. I wasn't happy at the rate of intrest but wasn't in a position to argue with Nat West.

AM I RIGHT IN THINKING I CAN CLAIM FOR CHARGES WHICH MADE THE OVERDRAFT GROW TO THE ORIGINAL £3000.00?

2) I became unemployed in March 05 and started to claim DSS Disability benefits etc. Also claimed on the Insurance on the above loan (I pay £104.88 on 28th each month by D Debit and Nat West pay it back into my account on or around the 9th of the following month. BUT went overdrawn again as DSS benfits didn't cover DD's Cheques etc, so Nat West aggreed a second Loan of £1000.00 over 3 yrs with intrest of £406.52. They would not allow me to have insurance protection on this loan so I pay £39.07 on the 1st of each month.

Problem now is that the days that my Disability Benefit is paid into the account doesn't correspond with the days the D/Debits for both Loan payments and I am Overdrawn again. Since July 06 I have paid approx £90.00 in charges and am now £51.00 overdrawn.

As I have previously been given incorrect information by NAT WEST CUSTOMER SERVICES OVER THE PHONE (which also lead to charges) I emailed the bank on 4 Sept asking them to get back to me to discuss the charges they e-mailed back saying they would be in contact with me within 10 days, I e-mailed again on 25 Sept' -NO RESPONSE RECEIVED YET- But yet again charges going out of my account on 2 Oct (this Mon coming) have made my account overdrawn, so I went to the branch this morning and was fobbed off.

As my DSS Benefits are paid into my NAT WEST acc' each time the account is overdrawn I have no money to live on, so can't buy food & pay bills which have fallen in arrears due to the bank charges etc.

I don't have any credit cards or a Switch card or a Cheque Book only an ATM?Solo Card, so I can't go overdrawn except when bank charges are taken by the bank.

CAN I ALSO CLAIM BACK THESE CHARGES ESP' AS I HAVE BEEN TRYING TO GET THEM TO DISCUSS WITH ME BUT THEY HAVE IGNORED MY E-MAILS.

It seems like I'm going to have a major struggle on my hands, but I can't keep letting NAT WEST take my Disability benefit as I will never be able to pay the overdraft back at this rate.

Any advice will be really appreciated, If I go ahead and claim I will need some help working out the intrest and using the Spreadsheets
Thanks S

[saxon]

Hello, I know what you're going through, don't fret.

Contact the benefits agency, and ask them for an invitation to open a Post Office account, purely for your benefits.
Apply for another account, Parachute account purely for anything that has to be paid via DD, SO etc.

Once you have applied, you can get giros until the account is opened, (explain why you need a new account, they can't/won't refuse this)

Then make an arrangement to pay off the NatWest what you can afford, on a weekly/fortnightly or monthly basis. (This is what I have done with the Halifax)

Then, you will start to feel in control again, but again, don't fret, we'll all help.

[add-enuff]

Hi Saxon

thats good advice about the Benefit Agency I didn't know about that I will get onto them tomorrow about opening a Post Office account. As for bills I'll try and open another acc' with a different bank just to be on the safe side.

Spent all of yesterday and today reading the posts on this forum and don't feel so small and insignificant any more.

Prepared the S.A.R - (Subject Access Request) letter and will post to Nat West tomorrow to get things started - GULP

It feels like stepping onto a big roller coaster, because once I start I WILL NOT GIVE UP even when they try to threaten and scare me off (which I know they'll do)...so here goes

Thanks for your advice I'll keep you posted....

[sjc1985]

I have been advised by someone that the bank have a duty according to the banking code to not take charges when they will be taking the persons benefit (I only get £100 a week and they are taking all of this). I have been advised to get in contact with the bank and tell them that the banking code states they have a duty to not take the benefits for myself and my daughter and if they refuse to speak to a manager/ supervisor and tell them I will be making a complaint for failing to uphold the banking code and taking the money we are legally entitled to... It might be worth a try to stop them taking the charges now whilst still claiming all the old charges back, good luck x

[add-enuff]

Hi

This sounds like something I read about on another thread but I couldn't find the original info. THANK YOU SO MUCH!!! I Will be going to the branch in the morning they fobbed me off yesterday but they wont get rid of me so easily this time. I'm just a bit worried they'll close the account out of spite, but if they want the loans repaid it wouldn't make sense for them to do that. Would it?

I'll try and track down the Banking Code on line if I find it I'll let you know

Many thanks

[sjc1985]

Im worried about them closing the account as well but I suppose thats a chance we take to be able to live, lol.. if you do find it, let me know... good luck x

[add-enuff]

WOW I FOUND IT !!!!! What do you think?

It is on the Banking Code Website

THE IMPORTANT PART IS IN RED BELOW:

http://www.bankingcode.org.uk/press/findiffs070103.htm

"The Banking Code has always required such customers to be treated ‘sympathetically and positively’. However, recent guidance now sets out in detail how these words should be interpreted and ensures that customers in financial difficulties get better treatment from their banks and building societies.

The guidance recognises the need to draw up a repayment plan which identifies ‘priority debts’ for the essentials of living and to ensure that the customer is left ‘with sufficient money for reasonable day to day expenses’.

Banks have to provide customers with straightforward information in plain English and ensure an account is passed promptly to a specialist team. Other improvements are listed in the Notes to Editors below.

Seymour Fortescue, Chief Executive of the BCSB said:

“Consumer debt is an increasing concern, particularly in the post-Christmas period. This additional guidance, which has been developed in conjunction with the banking industry, will ensure that the Banking Code provides enhanced protection for consumers who may be struggling to manage their finances.”

8 JANUARY 2003

Full copies of the guidance can be found on Banking Code Standards Board

[add-enuff]

Sorry I got all excited and missed out the following-hope it helps other people too....


What the Guidance Says:
• Financially difficulty defined as “when income is insufficient to cover reasonable living expenses and meet financial commitments as they become due”
• Banks must give “straightforward information in plain English”
• The Code must apply to any agents, such as debt collectors
• Subscribers must explore a range of options and pass an account promptly to a specialist team

• ‘Priority’ debts take precedence over ‘non-priority’ debts. The former are defined as those “where the customer’s failure to pay could lead directly to the loss of one or more of the following – the customer’s home (e.g. rent, mortgage, secured loans), their liberty (e.g. council tax, child support, maintenance, income tax, court fines), their utility supplies (e.g. water, gas, electricity) or their essential goods or services (e.g. cooker, fridge or means to travel to work)

• Banks should accept offers based on equitable distribution of available income
• Any repayment plan must “leave the customer with sufficient money for reasonable day-to-day expenses”
• Banks must not “subject customers to harassment or undue pressure when discussing their problems”
• Token offers accepted “where the customer has demonstrated they have no surplus income available for their non-priority creditors and there is a realistic prospect of the customer’s circumstances improving.”
• Penalty interest rates and charges. Banks “may consider agreeing with their customers in financial difficulty appropriate concessions, relating to charges and interest payable.”

• The bank “may, among other options, consider writing off or not pursuing part of all of the customer’s debts.” They must give their reasons in writing in requested.

• The bank must “seek to revise contributions only at the end of the review period or if a customer’s personal circumstances change”
• Banks must say where customers can get free money advice.
• Banks must use where possible the MAT/BBA common financial statement

Customers and their advisors also have responsibilities. Customers must:
• Help themselves: dialogue and disclosure
• Co-operate with banks in developing a plan

[sjc1985]

Blimey, you did well... If we both quote that at them and threaten to complain to fsa, we may get some of our charges back, lol... Let me know how you get on x

[wemfish]

I email the banking code on this subject

Part of the reply was;

You may believe that the bank has acted in breach of its obligation under the Code to be “sympathetic and positive” and to work with you in resolving your financial difficulties, and this has caused you a financial loss. In this case, one course of action is for you to pursue this as a complaint against the bank. You should make your complaint through the bank’s internal complaints procedure. The bank will give you details of this, on request. This sets out the legal timescale the bank is required to follow in dealing with your complaint. Your complaint should be made in writing, to its designated complaints department. After the bank has looked into your complaint, it will write to tell you of the outcome of its investigation. It will also tell you about your right to bring your complaint to the FOS if you are still not happy.

The FOS helps settle disputes between individuals or small businesses and financial organisations. If a settlement cannot be agreed, they decide who is right. The service is free to consumers and its decisions are binding on financial organisations. FOS can make awards of up to £100,000. You can find their contact details on their website at Financial Ombudsman Service. The FOS takes account of the Banking Code in making its decisions.

I also emailed the financial ombudsman on the same issue, but they are yet to reply. . . .

I hope this may be of help to all

[add-enuff]

Well it was very dramatic at the bank today!

The smug suit I spoke to first of all said he would refund the charges which made me go overdrawn last week when I explained I had no money over the weekend. Then he said he couldn't find the details of my visit on Saturday morning or what the person I had spoken to had put on the computer!!!! So that was why he changed his mind and said he couldn't refund the charges (incase I was lying I suppose).

I explained the Banking Code guidlines about being "sympathetic and positive" towards customers in financial difficulty but his eyes glazed over and he said that the guidelines didn't apply and "people are always coming in with stuff off the internet" at that point I decided to leave and save him any more embarassment.

So, S.A.R - (Subject Access Request) & Postal Order for fee posted by R/Delivery today.

WEMFISH, I think I'll make a separate complaint using Nat West's internal complaints procudure as you suggested (nothing ventured, nothing gained) But I'll bet my last penny that they close my account to spite me....So will open another account elsewhere, just in case.

I think this will be a protracted and bad tempered affair, why don't they just stop wasting everyones time and PAY UP!!!!! Oh yeah and pigs might fly...watch this space.

I hope I have the energy & patience to carry this thru...

[wemfish]

Good luck, you will get all your money back eventually, I just wish there was a permanent fix to all this because we will all be back suing the banks again and again until they stop steeling off us all

[sjc1985]

I had fun as well... Is spoke to a lady and explained about the £95 in charges leaving me with no money for the week and they agreed to refund only £28 of it... that was yesterday... THEN overnight they hit me with another £210 in charges... I rang them this morning and u can imagine what i said. As a "goodwill gesture" they refunded £50 of my charges (leaving me with £160 still). When i asked what they were going to do, was I to tell my daughter she cant eat for the week as NatWest want their charges, he told me they would authorise me to take £75 for the week, although this would be added to my overdraft, making me a further £75 overdrawn and he wants me to go through with a consolidation loan to clear off my overdraft!!!! Its a joke!

[freebird]

I've sent you PM's with the letter but have a look at my thread and see if you can pick any thing useful out of it!
I had my income support paid in to my parachute account and that way they couldn't touch it and I knew that we'd have food and electric for each week...
;-}
just wish I'd have done it years ago!
I've kept my daughter's DLA going in for the time being ( ONLY ) temp. just to keep them off my back, to make sure the loan and overdraft are covered.
It's been hard juggling the money around and keeping me head above water but at least this way we "eat"
I feel for you cos I'm there with you. I've lost count of the number of times I've cried and Christmas last year was the worst ever !!!!!!
That's why I'm fighting so hard to get it back...they'll pay for every tear shed by me and my girls..............
I love this forum, admin, mods, helpers, and all the posters...........
you've all kept me going this year! and we can all help each other out along the way with a shoulder to lean on or help here and there.....



BTW.........I've just read this again ..."he told me they would authorise me to take £75 for the week, although this would be added to my overdraft, making me a further £75 overdrawn and he wants me to go through with a consolidation loan to clear off my overdraft!!!! Its a joke!.............

tell him to eff off............
open the parachute account tomorrow..post office...bank of scotland...anywhere...... and phone the benefits agency and have your money paid in from asap...............don't agree to the loan with them.....god I hate them...........

I'm making a cuppa now cos I'm so mad !!!!!!!

[wemfish]

got a reply today from the Financial Ombudsman

---------------------------
The Financial Ombudsman Service is not an advisory body, therefore I can
not provide you with information of what is acceptable or unacceptable
Banking practice.

If you are unhappy with the conduct of the bank, then you are entitled
to complaint about the service you have received.
---------------------------

so not much help there!!