Smile 'Reviewing' its Charging Policy

[phil1101]

After submitting my Data Protection Act claim using the template from the library, I received the standard 'sorry you feel the need to complain etc' letter two weeks ago.

Yesterday, I received a letter stating that "smile are now reviewing there charging policy" and "as soon as our executive body has made a decision......"

Could this be an interesting developement?

And has anyone else had a similar letter?

[alanfromderby]

Very interesting, and I am sure many financial instituations will be having to do this. However, don't let it deflect you from your timetable.

[gothicf0rm]

yes but smile also claim to be an ethical bank. ethical banks dont break the law. they could be doing it on those grounds alone... it gives them a perfect marketing angle of being ethical against everyone else. if one bank alone gets rid of charges that stands it in a very good position against its competitors and if the bank already publicises its ethical approach this strengthens it further. smile could be doing a very smart thing in terms of business.

[Flyermonkey]

Hmm, I wouldn't hold your breath.....

After suddenly receiving a refund of all my bank charges two weeks ago from Smile, before starting legal action but 8 weeks after sending the 'nasty letter' from this website I recieved an email saying that Smile were updating their terms and conditions. Following the provided link to a list of charges this is the most interesting part of the update;

"smile Current Account Tariff

All smile online banking services are free.

Charges are only made for the following services:

............

'bounced' cheques, direct debits, standing orders or where you use a cheque guarantee facility or Visa debit card to create or increase an existing overdraft (due to lack of funds) £25 "


so it is now a "service" for "creating or increasing an existing overdraft"


I would be surprised if they have had a sudden change of heart within the last week.......

[dave]

No. Someone there has wise up and realised that a service isn't a penalty - clevery boy!!

Not that it matters much - we have that angle covered too!

[Spiceskull]

Originally Posted by dave

No. Someone there has wise up and realised that a service isn't a penalty - clevery oy!!

Do Smile subscribe to the Banking Code? If so, they should bear in mind the wording (although this is likely to be changed soon - see other threads regarding the code):

5.4 states: We will tell you the charge for any other service or product before we provide that service or product, and at any time you ask."

5.5 states "Before we take interest or charges for standard account services from your current or savings account, we will give you at least 14 days notice of how much we will take."

Effectively, if a bank makes an automatic charge without letting you know in advance, then it is breaking 5.4. However, they usually adhere to 5.5, as statements tend to state that charges will be levied on [due] date, and in this a service IS implied.

In a nutshell, I expect the banks will either not process the 'offending' items, or they will ask for our instructions on how to proceed...(is this at all likely?)

[phil1101]

With regards to the letter recieved from smile. Could this be a delaying tactic?

I am considering sending another letter, saying something along the lines of 'thanks for your letter ........ but i would also like to point out that i intend to comply with my legal rights regarding recieving the details within 40 days etc.......irrespective of wether the executive body has made a decision or not.

Would that be considered agressive or not?
Regards

[phil1101]

I posted my reply on the 10th April stating that i understand the content etc. but basically the 40 day clock is still ticking.

I have today recieved a further letter ....."I'm sorry we've still not replied to your complaint. This is just to say that we'll be looking into this and a member of our Complaints Team will get back to you with a full response. This will be by phone, secure message or return letter"

Has anyone else experienced this delay or response to the Data Protection Act request?

Good luck all

[phil1101]

Secure message recieved two days ago.
Just over £200 refunded (with apologies) into my account!
A small amount by comparison to others, but it all helps1

I only got as far as posting the Data Protection Act!

I am now awaiting the outcome of two other claims to First Direct and Mint.

Looks like the book fund will be recieving a donation when these are completed!

[dave]

Could you complete the survey? (if you haven't already).

http://www.consumeractiongroup.co.uk/survey.php

[StoneLaughter]

All smile online banking services are free.
Charges are only made for the following services:
............
'bounced' cheques, direct debits, standing orders or where you use a cheque guarantee facility or Visa debit card to create or increase an existing overdraft (due to lack of funds) £25 "

Calling it a "Service" or a "Charge for Services" does not change the basic nature of it as a punitive charge... in fact and in law this is substantially identical in character to the former situation.

A service is something you ask for, agree a price on, pay for, and then receive... In the case of punitive charges, an event occurs which the bank then levy a charge for. The ONLY WAY for banks to meet the OFT's statement is to reduce their charges for breaches of contract to a reasonable level.

edit: in my opinion

[phil1101]

Dave - survey completed yesterday.
Regards