Thread: A&L Response to my Claim - What next?? Help...

This is yet more flannel from the banks who clearly do not understand, or choose to ignore, what is actually happening in the personal account area of the banking industry.

The advice is to proceed with your timetable, sending out your second letter and then raising your claim. For now you can disregard all their comments regarding the OFT and the Ombudsman. However, if you do wish to respond to them about this letter (but it would probably be a waste of your time) you can use the following text which was used by another member of this forum:

With regard to your comments concerning the OFT statement of April 5th, whether or not you disagree with the OFT's analysis is irrelevant. Indeed, your response indicates that you have clearly missed the whole point of the OFT enquiry, and subsequent statement. In line with the OFT, customers also agree that banks have a right, as a business, to levy charges where there has been a requirement to intervene in customer accounts. The argument of customers, and also of the OFT, is that these charges must be fair, proportional, and a reflection of the actual loss to the bank for their action.

When the charge is issued as a penalty, the position of customers and the OFT is that the charge is unlawful under contract law, and is therefore unenforceable. To quote the OFT statement, 'We consider that a contract term is likely to be unfair if it requires consumers to pay more as a result of a default than the court would order them to pay if they were sued for breach of contract. This means that a default charge should not exceed a reasonable pre-estimate of the administrative costs that the consumer ought to have realised would be likely to be incurred by his or her card issuer in dealing with defaults.'

As you are clearly aware, most banks, as well as the BBA, have indicated that they think the analysis is wrong, unfair, or only related to credit cards. However, the fact remains that the OFT has stated it is subject to all consumer contracts - including bank accounts, overdrafts and mortgages

When the OFT makes a ruling, then creditors are expected, and indeed required, to comply. All banks and credit card companies, in general, hold licences to lend money under the Consumer Credit Act 1974. With this in mind, and considering your ill-judged analysis, I shall report you to the OFT for misrepresentation.

I sent my lba to A&L on the 11 May, giving them 14 days to respond. It is coming up to the 14 day deadline - what do I do if I do not receive a response by the deadline date? Do I go straight to the online court and lodge a case? (They responded rather rapidly to the first letter sent to them.)

Would appreciate some advice, this is my first claim.

Redfox

Thank you.

Still no response, so will start proceedings over the weekend!