Thread: Hardship cases needed for waiver review

In view of the sucess in the Alliance and leicester forum with the assistance of the fos - I was wondering that as the courts seem in most cases to have their hands tied in respect of stays would it be worth drafting a letter so that even those with court cases pending could attempt the "two pronged attack"

Attached is a draft suggestion to which the claimants could obviously attach their own details of their situation. I understand from the court case this week that the judges are saying the hardship must be caused by the bank charges and it is not just a case of those who feel that they are in a genuine hardship case that will succeed - although this does not seem to be bourne out entirely by the advice that the case on A&L thread received or the Banking Code.

As the FSA have asked for specific evidence of cases where the banks are not conforming to the basis of the agreement for the waiver I was wondering if people were willing to copy their letters to the banks and the FOS and the FSA copies could be sent to Jansus or crfx250 and passed on to the FSA?

Just for comments Please










To XXXXbank


From XXXXX
Reference account number XXXXXXX
Dear sir / madam

I refer to previous correspondence on the above account and wish to draw to your attention a condition of the waiver of claims regarding Overdraft charges . This is an extract from:
FSA waiver statement 27/7/2007 & Memo to Treasury select committee 9/10/2007
“Consumers can still complain about new charges incurred.
Consumers who have received a final response from the bank/building society which does not include an offer
Consumers still have the option of complaining to FOS. However, the banks and building societies have also requested that the FOS does not consider any complaints about unauthorised overdraft charges until resolution of the test case.
Consumers who are in very difficult financial circumstances - 'hardship cases'
Banks and building societies will have to conduct a filtering process to ensure that cases of genuine hardship are still dealt with during the waiver period. Cases of hardship would still be entitled to be referred to, and dealt with by, the FOS.
Consumers who want to complain to the bank/building society about other issues
Consumers can continue to use the existing complaints process to seek redress about other financial matters, such as insurance, mortgages and current accounts. However, if their complaint relates to the level, fairness or unlawfulness of unauthorised overdraft charges, that element of the complaint will be registered but not dealt with.”
Also as I am sure you are aware the banking code requirement for banks to deal with persons in financial difficulty sympathetically and positively has not been affected by the waiver.



I feel there is nothing to be gained at this point from questioning the level of charges applied; my position is merely that the agreement reached between the banks, FSA, FOS and OFT prior to the OFT v banks case being submitted to the High Court at the end of July clearly states that responsibility for determining and resolving a ‘hardship case’ lies with the bank, that the waiver granted to banks, allowing complaints re charges to be held pending the outcome of the High Court case does not apply to ‘hardship’ cases, and banks should therefore seek to identify and resolve such cases; further that where agreement cannot be reached between a customer and a bank the bank must issue a final response letter as a precursor to the FOS seeking to resolve matters.

My further position is that I firmly believe it will be possible for you to address my concerns such that I deem the matter settled negating any need for involvement of the FOS or closer to home the continued involvement of the Chief Executives office.


I am therefore (again) identifying myself to you to one of the cases where the excessive charges have been a cause or have worsened my present position . I (again)attach a summary of my present position for your consideration. As my case has now been in progress for XXXX weeks I would appreciate an early response.
I am sending a full copy of this letter to the FSA and The FOS .If you are unwilling to consider my request then you are under obligation to provide me with a written response indicating that you do not consider my case to be one of financial hardship and the reasons why. I will then consider my next course of action in consultation with the FOS/FSA
I would point out there has been considerable correspondence and phone calls concerning this matter before – and I regret having to bring this to your attention again ( attach any written copies)
The fact that I have commenced legal action is not a factor as the ability of the banks to request stays was made with proviso that banks would continue to consider hardship cases.
The basis of the financial hardship I am experiencing is: - (attach Personal sheet see example)
As indicated, I do not, with respect, wish to revisit the question of the fairness of the charges, or of whether some element of each charge was fair.

I fully believe that my difficulties meet any definition or criteria of hardship.

Many thanks for agreeing to examine matters. I look forward to your reply.


Kind regards,






EXAMPLE ONLY USE YOUR OWN SHEET
AND STATE HOW THE CHARGES HAVE CAUSED OR WORSENED YOUR SITUATION

First of all outlined ill health that led to drop in income and eventually position where only income was state benefits
· Secondly that my ill health is likely to continue for a time (add to both of these points as per your predicament)

Further points: -

· the illness was accompanied by financial difficulties – initially I lost track of my financial affairs and failing to transfer funds between accounts to cover expenses or direct debits began to incur charges
· thereafter, my sick pay ran out and charges began to occur as I did not have the funds to cover my outgoings or increased living costs caused by my illness leading to the worsening of my financial position
· I now rely upon Disability Living Allowance (Higher rate mobility, middle rate care) and Incapacity Benefit resulting in my inability to meet many of my current financial commitments and I find myself unable to make a number of loan or credit card repayments, pay telephone bills (a vital link when you are incapacitated), or sustain many of the commitments we all have (car tax and insurance, home insurance , etc)
· matters were made worse by charges continuing to be applied, and most recently, charges taking an account overdrawn, which in itself resulted in further charges

· presently my state of health is not that good, - outline

In total £****** in charges have been deducted from the specified accounts, £**** from (account numbered) xxx
Clearly the deduction of such a large overall sum of money has done nothing other that worsen the financial difficulties and hardship experienced.

Were my legal action against bank xxx L (to recover the charges levied) have proceeded to Court I would have been entitled to claim statutory interest at the rate of 8% and Court fees of £120
This information and a full list of the charges applied to each account can be found in the attached spreadsheets

You will note that the overwhelming majority of the charges were applied before the deterioration of my health and financial circumstances.

I am willing to forego the amount I sought to claim for statutory interest and Court charges – in total £****

I therefore look to you agreeing to repay in full all of the charges levied and deducted from the specified accounts, namely, the sum of £*******



(by the way I take no credit for the above - modified from the claimant who won by this method)

Jan
Attached FilesHARDSHIP DRAFT.doc (30.0 KB, 0 views)

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Hi CRF, I have just had notification from my court regarding my application to lift the stay, they have granted a telephone conference. My application was based on benefits as well as mortgage arrears and overdue council tax due to ill health. I am going to send the additional fee for a hearing in person.

I had previously written to Abbey before I received the blanket stay from the courts and advised them that they took money from my benefits, they NEVER NEVER answered me, I also gave them a further chance to settle and with this in mind I gave then the opportunity to settle at a discounted figure just so I could use this money to put mine and my families life back in order and I did inform them that I would apply for the stay to be lifted if one was given, which it was.

DS

Originally Posted by jansus

Hi

I was going to forward names of those who think they have valid cases - but I think your message box is full ?

Hi Janus is that message for me or CRF,ds

Originally Posted by dsilverstein

Hi CRF, I have just had notification from my court regarding my application to lift the stay, they have granted a telephone conference. My application was based on benefits as well as mortgage arrears and overdue council tax due to ill health. I am going to send the additional fee for a hearing in person.

I had previously written to Abbey before I received the blanket stay from the courts and advised them that they took money from my benefits, they NEVER NEVER answered me, I also gave them a further chance to settle and with this in mind I gave then the opportunity to settle at a discounted figure just so I could use this money to put mine and my families life back in order and I did inform them that I would apply for the stay to be lifted if one was given, which it was.

DS

Hi DS, when is the telephone conference scheduled for?

Date is 12th November 2007.
DS

Hi CRFX, I was considering sending the additional £35 and having a hearing in person. What do you think!!

Ds

Originally Posted by dsilverstein

Hi CRFX, I was considering sending the additional £35 and having a hearing in person. What do you think!!

Ds

To be honest I would seek advice from someone else as I'm no expert and
don't have the experience. That's why I never advise people on their cases. There must be loads of people on the that could help you though.

Anyone?

Hi CRFX,

It is OK I have sort of decided to pay the £35 and go for a hearing in person, I just thought you may have some knowledge.

Was there a reason why you wanted my conference hearing date!

Thanks
DS

Hi Janus

I understand what you are saying. In my case I was at court stage with a date when the courts made the blanket stay. I had already written to Abbey before the case was stayed, advising them that they have taken my benefits etc, I did not even get a reply. They were happy because the courts did the blanket stay which was in their favour for the time being.

I am not sure that my court will lift the stay as I have the very outspoken DJ who wanted this test case and made the news headlines a month or two before the OFT Test Case. They had also blanket stayed my hubbys business claim which is not part of the test case and they wanted him to pay £65 for a hearing to request the lift of the stay but HSBC on their own merits settled the case without the need for a hearing.

I hope to hear from you soon.
Thanks
DS

Originally Posted by jansus

Hi Ds

The Announcement Is On The Forum Today Details Needed Asap

Jan

Hi Jan
Where on the forum are the details!!
DS

Hi Jan
I have found it now, it took a bit of searching and have sent an email and signed the e petition. What will happen now!
Thanks
DS

Join Date: Mar 2006
Posts: 4,580


URGENT - Are you suffering severe hardship because your bank won't process your refund request, or has a bank reneged on an agreement to settle ?
As you will be aware, the FSA has given banks a waiver, which allows them to put on hold any refund claims until the test case has been completed. HOWEVER, they also stated that banks must still process reclaim requests where the person claiming is in a position of severe financial hardship, or the bank has previously made an offer to settle.

The FSA also announced that the waiver would be subject to a review, for which evidence needs to be submitted this month. If they found proof that banks were refusing to process claims where a financial hardship could be identified, or they have breached earlier repayment agreements, they may revoke the waiver.

If you feel that you meet the criteria, and have a claim with your bank that has been put on hold, please can you contact us urgently by email:

admin@consumeractiongroup .co.uk

Initially, we would need to know the amount claimed, which bank, and at what stage the claim has reached. If your case regards financial hardship, we will need to know why you would consider that your position falls within this category. We will then contact you if we need any further details.

All information received will remain totally confidential, however it may be necessary to pass on the information to the FSA/fos - however, this will only be done with your full knowledge and written permission.

As you will appreciate, this is extremely important, and could force the FSA/FOS to rethink their position on the waiver.

We also need to be ready to file any evidence no later than 26th October to ensure that it meets the review deadline.


PLEASE PASS THIS INFORMATION ON TO AS MANY PEOPLE AS YOU CAN
__________________
Alan, Derby, UK.

CLICK HERE TO SIGN THE PETITION SUPPORTING THE JOINT BANK CHARGE CLAIMS CHARTER