Thread: solo card cancelled and threating letter

I do not have an overdraft facility
but in the past my account has gone up to £500 overdrawn and yeah sure the charges are applied but thats it.
Anyway since they paid out on a claim of mine they have actually charged me more in the last 8 weeks then they have during the last 6 months
So last week my card gets swallowed up for a debt which is made up of charges, a letter gets sent in the post, saying that I have to return the card and failure to pay the £xxx will result in more further action. To be honest I'm not too bothered about losing my solo card at the moment, but not having a debit card could cause problems in the future, esp over Christmas when I need to order stuff off the net for Christmas presents (I never buy presents in shops as I don't like shopping)

So I am writing them the same letter as before (saved to harddrive so just need to change dates) along with a new schedule of charges, and will ask for a refund. Once I have the refund I can then try and get the card back

But I have a funny feeling that they want to close my account as I have no loans or credit cards with them and also its a graduate account so I don't get charged for going overdrawn, just for card abuse and returned cheques and they know I know that these charges can be claimed back, so I am of no finicial value to them.

Thats the thanks I get after being with them for over 11 years.

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Why dont you open a new account online with Natwest or Barclaycard to cover yourself?

covered myself for that a while ago but could only get a basic account with a cash card, still I really have had enough of HSBC so I am going to stop using them, start using Lloyds and have my wages paid into my that account, and move my direct debits over - to get treated like that after being a customer for 11 years and having taken out 3 loans previously I think it stinks.

Originally Posted by I_feel_cheated

covered myself for that a while ago but could only get a basic account with a cash card, still I really have had enough of HSBC so I am going to stop using them, start using Lloyds and have my wages paid into my that account, and move my direct debits over - to get treated like that after being a customer for 11 years and having taken out 3 loans previously I think it stinks.

Been a nat west customer for 22 years and the loyalty on the banks part is nil.

there is no loyalty form banks at all. i have been with HSBC since it was midland years ago and they have not even bothered to answer my letters im suing them tomorrow and i assume ill stop ebing a "good customer " round about then just bear in mind that lots of the banks are affilliated with one another, Barclays with woolwich, Natwest with RBOS etc.

I quite agree but to be forewarned is to be forearmed as they say

Mr Colin Langdale xxxxx
HSBC Bank plc xxxxx
Arlington business centre xxxxx
Millshaw park lane xxxxx
Leeds xxxxxx
LS11 0PP

15/10/2006

Dear Colin,

BANK ACCOUNT NO xxxxxxxx

RE: REQUEST FOR REFUND OF CHARGES

Firstly, I am very disappointed that I am forced to write to you yet again, please ensure this letter is fully read and that all points I raise are fully responded to in writing.

My request
I write with reference to my current account with you. Over the past few months I am disappointed that I have noticed a number of charges still being levied, allegedly connected with the costs involved in CARD MISUSE and UNPAID ITEM, please see the attached schedule for a breakdown of these so called charges. I would like to express my objection to each of these charges, and ask for their reversal. These charges have also resulted in the services of my SOLO card being withdrawn.

I am of the view that your charges represent a penalty and are therefore irrecoverable at common law. In the Scottish case of Castaneda and Others v. Clydebank Engineering and Shipbuilding Co., Ltd. (1904) 12 SLT 498 the House of Lords held that a contractual party can only recover damages for actual or liquidated losses incurred from a breach of contract. This is also the position in English law: Wilson v Love [1896]; Dunlop Pneumatic Tyre Co Ltd v New Garage and Motor Co Ltd [1915] AC 79; Ford Motor Co v Armstrong [1915]; Bridge v Campbell Discount Co. Ltd [1962]; Murray v Leisureplay [2004]. Your charges do not reflect any actual or real loss, instead they appear to represent a lucrative profit-making scheme.

UK banks have recently given evidence to the House of Commons Treasury Committee on how bank charges are calculated: "The costs are going to pay for all the people we have who pursue debt, collect debt, speak to customers and chase payments. The way these charges are arrived at is by taking these total costs and making some assumptions about the volume that is going to come through to arrive at the individual charges" (2nd report, 25 January 2005, paragraph 50).

On a separate note, your charges appear to represent an unfair term of contract which is contrary to the Unfair Terms in Consumer Contracts Regulations 1999 (SI. 1999/2083). My account falls within the ambit of Regulation 5 of the Unfair Terms in Consumer Contracts Regulations 1999 as I am a consumer. Your charges constitute an unfair penalty under reference to paragraph 1(e) of schedule 2 of the said regulations:
Indicative and non-exhaustive list of terms which may be regarded as unfair - 1. Terms which have the object of effect of - (e) requiring any consumer who fails his obligation to pay a disproportionately high sum in compensation’.

On 26 July 2005 the OFT stated that 'a charge is likely to be disproportionately high if it is more than a court would be likely to award if the lender sued the cardholder for breach of contract'. Because your charges include a lucrative profit margin, in addition to actual loss, they are irrecoverable as an unfair term in contract.

The fact that these charges were applied has meant that even after additional funds were credited to the account which would normally have been sufficient, on some occasions the balance has remained overdrawn or otherwise insufficient. As a result, additional transactions have been processed when inadequate funds were available in my account, and additional charges applied. I believe the term vicious circle applies to this situation, and as such, it could constitute a clear breach of the Banking Code.

Regardless of the wording of the automated letters sent to me, these charges constitute a penalty charge, as the amounts bear no relation to the actual damages incurred by you. I have been advised to remind you that such penalty charges are legally unenforceable, even if a clause exists in the terms and conditions that authorises such a charge.

The charges have also worsened my already fragile financial status. I am on a low income, and I am struggling to pay off debts. I would like to think that you will take note of my delicate situation, you are the listening bank remember.

What I require
I calculate that, as at today’s date, you have taken a nett total of £XXX and I request that you refund this amount in full and I enclose a schedule of the charges which I am claiming with this letter.

Targets to resolve this matter
I expect you to enter into a sincere dialogue with me about this matter and write on the assumption that you will prefer to do this rather than merely respond with standard letters and leaflets.

You have 10 working days, from receipt of this letter (i.e. by Thursday 23 August 2006), to reply unconditionally accepting my request in principle and letting me know a date by which I will receive payment.

If you do not respond, or do not respond positively, within this time period, I shall send you a further letter before action allowing a further 10 working days in which to reflect. I believe that these targets are more than sufficient for a large company such as yours with dedicated staff and departments.

After that there will be no further communication from myself and I shall issue a claim at the expiry of the second deadline. The continued relentless bombardment of charges may have weakened me financially, but I can assure you my resolve has never been stronger.

Further to the above and after seeking advice, I am also of the view that because I am making a second claim, you will try and close my account. I request you keep my account active, partly because I feel that out of all the UK Banks, your standard of customer service is the highest. Also due to my fragile financial situation, closing my account will cause me serious difficulties and my wages will not be able to be paid into the account, throughout my working history, every wage I have ever received has been paid into HSBC, and always on time to clear any overdraft balance. I would be grateful if you could keep the account active. However, if HSBC decides to terminate my contract and my account is closed, I will have no choice but to write to my local MP and contact the BBC. If you close my account I would suggest you make sure that this is not a breach of the Banking Code, as this may result in additional action from myself.


I look forward to hearing from you by return.

Yours faithfully,


XXXXXXXXXXXX

gonna send the above letter off tomorrow, along with two CCA letters to DCA's.

My £10 cheque to RBS was cancelled by HSBC, and I haven't had time to focus on that, but CAP 1 went through, and I received a break down. Out of a debt of £1500, £1150 of that is made up of charges.

On a separate note, has anyone had any dealings with these PRE-PAID mastercard's. Yeah there is a charge of 4.95 per month so we are talking £60 a year, but I am thinking of one as most of my purchases are on line.

year I wish I did not give in and acceppt the part payment, bunch of t405585s........don't give in get the full amount, RBS and CAP 1 will not be let off the hook, and when my house is in order Egg are next on the list, this won't happen untill the new year though.

I request you keep my account active, partly because I feel that out of all the UK Banks, your standard of customer service is the highest

I know but if the matter does get to the BBC or whoever, then at least I have asked them nicely and have praised them, but to be frank like all the banks, CS is very bad indeed.

I have just noticed a charge of £75........TOTAL charges...however this was taken after the charges had already been deducted, so I need to go to the bank tomorrow.

Originally Posted by I_feel_cheated

I do not have an overdraft facility
but in the past my account has gone up to £500 overdrawn and yeah sure the charges are applied but thats it.
Anyway since they paid out on a claim of mine they have actually charged me more in the last 8 weeks then they have during the last 6 months
So last week my card gets swallowed up for a debt which is made up of charges, a letter gets sent in the post, saying that I have to return the card and failure to pay the £xxx will result in more further action.
Thats the thanks I get after being with them for over 11 years.

Been there as well ! Aren't we similar so far in our debt profiles !

If you don't return the card they'll send someone to get it (NCO financial services) and they charged me a "Card Recovery Fee" of £58.75 back in 2003.

(Which I am claiming back now )

I have had an account with them for 14 years, since I was on a Midland LiveCash account, which is actually interesting come to think of it as it means I was under 16 when I signed the contract, does this make any difference to their T&C validity?