Do you need a parachute account?

[Serafina]

Hi everyone.

I'm new to all this and am thinking about reclaiming my bank fees (obviously! ). I'd prefer to keep my own account and the prospect of having to get a parachute account worries me, as I don't have a fantastic credit history, but my bank now seem to be slapping charges on for me taking money out on my pay-day! Latest charges meant I couldn't even afford the bus to go and see my mum in hospital because they nabbed what remaining cash I had. Their response? "well, you did go quite a lot over your limit in February". Looking at my last statements shows it was all on pay day and well covered (and then some) by my monthly salary. It seems that their system doesn't register my money at the start of the day, so makes it look as though I go vastly overdrawn before my pay shows on my account. Tad upset you could say...

	Parachute account "Parachute account" describes a second bank account opened expressly in order to avoid retaliatory action by a customer's usual bank once a bank charges claim had been commenced. The term "parachute account" was first used in this sense by BankFodder on the 22nd February 2006 and has since become part of general usage in this context. "parachute account" is used regularly by Martin Lewis of MoneySavingExpert.com and also by the National press.

[Perseus]

Hi Serafina, and welcome.


Reading your post, you are certainly not alone in your troubles.
The first thing that may help, is to go and speak with someone at your bank. Explain to them what financial hardship you're facing, even be prepared to write down what income and outgoings you have on a monthly basis: Here is a link to national debtlines budget planner so you can prove your ins and outs:- National Debtline England & Wales | Personal Budget Sheet .



They may respond by reversing some charges/providing an overdraft temporarily, giving you a gesture of goodwill etc. Just make sure that if you have to sign anything - it doesn't limit any action you may wish to take regarding reclaiming charges.

Because, thats the very next thing you should do!
First of all - in the main Bank Charges forum - start your own thread in which-ever bank you are with. That way we can all help and advise.
Read the FAQ's to get a good idea of what/when/where/how it all works.

Send off your Subject Access Request request (with a borrowed £10 if need be) to get your statements.
The link for that is here:- http://www.consumeractiongroup.co.uk...ction-act.html and send it recorded delivery.
Then just count the days and get ready to county the charges up.

Let us know how you get on ok?

All the best
Perseus

	Bank Charges You should have started your claim for your bank charges by now. Don't wait. You should send your bank a Subject Acess Request asking for all personal data they hold on you - not just statements. You should calculate all of your bank charges and related interest as far back as 1995. You should send your bank a demand for a refund giving them 7 days. You should commence your legal action adding 8% statutory interest. If you wait for the outcome of the test case, you may not be able to claim like this. you may not be able to claim interest. You may only be offered the difference between the charge and the OFT "fair charge". The repayment scheme will try to limit you to refinds from 2001 only. A repayment scheme will not deal with any bank charges related defaults on the credit register whereas in a court action you can ask for these to be removed and to be compensated for the damage caused to you and your family by them. You should also write to the bank and to the CRA and put all charges related credit entries in disupte and warn them that you will want them removed from the Register when the test case is over. Warn them also that you are likely to be seeking compensation for these wrongful data entries. Full and final settlement Have you previously accepted a partial repayment of your bank charges in full settlement? You will still be able to claim the rest of your money back after the Test case is decided. Get all your information back to 1995 and put in your claim now.

	Subject Access Request A Subject Access Request is a demand which you can make to any organisation to disclose any personal information which they hold on you. The right to disclosure of data is provided by the Data Protection Act. There is no time limit. The organisation is obliged to reveal everything they have about you - which you ask for - as far back as you ask for. There are very few exceptions. It does not matter whether the data is held on microfiche, in an archive, on tape, in a cardex system, in sound recordings or in screen notes. Some companies are saying that they do not have to disclose where it would be difficult to do so - "disproportionate effort". This is untrue. Disproportionate effort refers to something else under the Act. If you are seeking bank charges information then you should ask for "all data held on you" and you should make it clear that you want everything as far back as it goes. Do not be put off by excuses. Do not accept being fobbed off. It is not in your bank's interest to make full disclosure to you. This means that it is in your interests to get it. If you have not started gathering your bank charges information yet, then you should start now. There will soon be a big rush once the OFT test case has been settled. Get all of your bank account informtion as far back as possible. At least as far back as 1995. If your bank says that they don't keep data as far back as this, don't accept it. Be persistent. They've got what you need in some form or other.

	Hardship By and large the "harship" provision in the FSA waiver is a myth which is intended to create a sense that the banking industry is sufficiently well-intentioned to act fairly towards its customers even though their right of access to the courts has been blocked. In fact there are very few guidelines as to procedure and very little definition of "hardship". One unfortunate spin off is that many people in difficulty get their hopes up and go to considerable lengths to plead hardship to their bank in order to get a refund or partial refund of their bank charges only to be refused. Neither the courts nor the FOS have the power to order a bank to make a charges refund on the basis of hardship. We hear of some people obtaining a partial refund quite easily. Others have obtained money by being very persistent - but mostly we hear that people are refused. Even benefits claimants do not automatically receive hardship refunds. By all means try to get a bank charges refund on the basis of hardship - but don't bank on it!

	Are you letting your bank keep your money Are you giving away thousands of pounds?? Many people aren't claiming all of the money they are entitled to when they make their bank charges claims. You have been forced to pay unfair bank charges. Have you forgotten that your bank has charged you inteest on those charges? If you are overdrawn and the bank owes you charges - then your overdraft is made up of charges - money which you bank owes you. Yet you are paying interest to the bank - on your own money!!! Follow this link to see the discussions on this. You might even double th size of your claim.

[Hippychick2007]

Totally baffled and on very slow computer. Hi All, ah bet you guessed am new to this........ maybe if I get any pennies back from bank charges would be worth investing in a faster pc!!!

Happy Monday

	Bank Charges You should have started your claim for your bank charges by now. Don't wait. You should send your bank a Subject Acess Request asking for all personal data they hold on you - not just statements. You should calculate all of your bank charges and related interest as far back as 1995. You should send your bank a demand for a refund giving them 7 days. You should commence your legal action adding 8% statutory interest. If you wait for the outcome of the test case, you may not be able to claim like this. you may not be able to claim interest. You may only be offered the difference between the charge and the OFT "fair charge". The repayment scheme will try to limit you to refinds from 2001 only. A repayment scheme will not deal with any bank charges related defaults on the credit register whereas in a court action you can ask for these to be removed and to be compensated for the damage caused to you and your family by them. You should also write to the bank and to the CRA and put all charges related credit entries in disupte and warn them that you will want them removed from the Register when the test case is over. Warn them also that you are likely to be seeking compensation for these wrongful data entries. Full and final settlement Have you previously accepted a partial repayment of your bank charges in full settlement? You will still be able to claim the rest of your money back after the Test case is decided. Get all your information back to 1995 and put in your claim now.

[Tigs]

Originally Posted by Serafina

I'm new to all this and am thinking about reclaiming my bank fees.

Go for it, hun!

I'd prefer to keep my own account and the prospect of having to get a parachute account worries me, as I don't have a fantastic credit history.

Nicest ones for applying are Clydesdale if you have one nearby. They don't require a credit check (they will ask for permission, you just say no), and they fill all the forms in for you.

slapping charges on for me taking money out on my pay-day

par for the course, if my experience is anything to go by. Once they get like this, it's best to cut your losses, imvho, or they eat all your money and you end up with other bills unpaid... Once the dragon has awoken, you can't satisfy it, no matter what you do.

[chancer]

Welcome Seafina & Hippychic2007. I myself am fairly newish and I'm still waiting to get these letters off. All I can say is that Perseus & Tigs will give great advice....and others too. Just hang in there and do your research and good luck with your claim.

[Tigs]

no expert, me. but be guided by most of the people on here. only thing i'm expert in is getting ridiculous amounts of charges from the banks...

but i will add my welcome to Seafina and Hippychic2007 (a girl after me own heart from the sounds of it, ;} )

[chancer]

Dito....I must be your bro as I'm an expert too at getting bank charges.

Originally Posted by Tigs

no expert, me. but be guided by most of the people on here. only thing i'm expert in is getting ridiculous amounts of charges from the banks...

but i will add my welcome to Seafina and Hippychic2007 (a girl after me own heart from the sounds of it, ;} )

	Bank Charges You should have started your claim for your bank charges by now. Don't wait. You should send your bank a Subject Acess Request asking for all personal data they hold on you - not just statements. You should calculate all of your bank charges and related interest as far back as 1995. You should send your bank a demand for a refund giving them 7 days. You should commence your legal action adding 8% statutory interest. If you wait for the outcome of the test case, you may not be able to claim like this. you may not be able to claim interest. You may only be offered the difference between the charge and the OFT "fair charge". The repayment scheme will try to limit you to refinds from 2001 only. A repayment scheme will not deal with any bank charges related defaults on the credit register whereas in a court action you can ask for these to be removed and to be compensated for the damage caused to you and your family by them. You should also write to the bank and to the CRA and put all charges related credit entries in disupte and warn them that you will want them removed from the Register when the test case is over. Warn them also that you are likely to be seeking compensation for these wrongful data entries. Full and final settlement Have you previously accepted a partial repayment of your bank charges in full settlement? You will still be able to claim the rest of your money back after the Test case is decided. Get all your information back to 1995 and put in your claim now.

[bob selby]

Sent subject access request to local branch of Halifax 28 days ago via snail mail and have not yet heard anything. The £10 cheque that was enclosed has not been cashed yet. Is it possible that they will deny receiving it/

	Subject Access Request A Subject Access Request is a demand which you can make to any organisation to disclose any personal information which they hold on you. The right to disclosure of data is provided by the Data Protection Act. There is no time limit. The organisation is obliged to reveal everything they have about you - which you ask for - as far back as you ask for. There are very few exceptions. It does not matter whether the data is held on microfiche, in an archive, on tape, in a cardex system, in sound recordings or in screen notes. Some companies are saying that they do not have to disclose where it would be difficult to do so - "disproportionate effort". This is untrue. Disproportionate effort refers to something else under the Act. If you are seeking bank charges information then you should ask for "all data held on you" and you should make it clear that you want everything as far back as it goes. Do not be put off by excuses. Do not accept being fobbed off. It is not in your bank's interest to make full disclosure to you. This means that it is in your interests to get it. If you have not started gathering your bank charges information yet, then you should start now. There will soon be a big rush once the OFT test case has been settled. Get all of your bank account informtion as far back as possible. At least as far back as 1995. If your bank says that they don't keep data as far back as this, don't accept it. Be persistent. They've got what you need in some form or other.

[Perseus]

Hi bob

Yes it is always possible.
May be worth a personal visit to the branch, and ask them when they received it, when it was passed on to their compliance section, and ask why the cheque hasn't been cashed yet.
As it's face-to-face, you shouldn't get fobbed off as much as you would in a letter!

All the best
Perseus

[chancer]

Hi Perseus & all,

I was at a party last night and one of the guest works in a bank. This person told me that since they have all the charges kept on a data base that you only need to write a letter (kind of like the Data Protection Act letter) just requesting all charges and etc back since you joined.
Just double checking if this is true?

Originally Posted by Perseus

Hi bob

Yes it is always possible.
May be worth a personal visit to the branch, and ask them when they received it, when it was passed on to their compliance section, and ask why the cheque hasn't been cashed yet.
As it's face-to-face, you shouldn't get fobbed off as much as you would in a letter!

All the best
Perseus

[chancer]

Hi folks,

Just wondering if anyone can answer the below query?

Originally Posted by chancer

Hi Perseus & all,

I was at a party last night and one of the guest works in a bank. This person told me that since they have all the charges kept on a data base that you only need to write a letter (kind of like the Data Protection Act letter) just requesting all charges and etc back since you joined.
Just double checking if this is true?

[Perseus]

Hi chancer

Yes - it's entirely possible that the banking organisations keep a separate database with all charges collected, and in a respectful and law conforming society they should return them.
The legal process that's followed by submitting the Subject Access Request should draw out all these charges, but the banks are well aware of the 'Statute of Limitations Act'. This basically limits their requirement, and your right to request information that is older than 6 years. There are other arguements and possible statutes that would force them in theory which for some - have been successful. In reality, the limitations act is a buffer they use to limit liability and the chance of previous charges being re-claimed.

In short - the Data Protection Act you quote is the right way to start that process of getting the info from their 'database'.

Regards
Perseus

	Subject Access Request A Subject Access Request is a demand which you can make to any organisation to disclose any personal information which they hold on you. The right to disclosure of data is provided by the Data Protection Act. There is no time limit. The organisation is obliged to reveal everything they have about you - which you ask for - as far back as you ask for. There are very few exceptions. It does not matter whether the data is held on microfiche, in an archive, on tape, in a cardex system, in sound recordings or in screen notes. Some companies are saying that they do not have to disclose where it would be difficult to do so - "disproportionate effort". This is untrue. Disproportionate effort refers to something else under the Act. If you are seeking bank charges information then you should ask for "all data held on you" and you should make it clear that you want everything as far back as it goes. Do not be put off by excuses. Do not accept being fobbed off. It is not in your bank's interest to make full disclosure to you. This means that it is in your interests to get it. If you have not started gathering your bank charges information yet, then you should start now. There will soon be a big rush once the OFT test case has been settled. Get all of your bank account informtion as far back as possible. At least as far back as 1995. If your bank says that they don't keep data as far back as this, don't accept it. Be persistent. They've got what you need in some form or other.

[chancer]

Thanks Perseus......I'll just send the Data Protection Act letter so and take it from there. I was hoping for a quick win but no harm.

Originally Posted by Perseus

Hi chancer

Yes - it's entirely possible that the banking organisations keep a separate database with all charges collected, and in a respectful and law conforming society they should return them.
The legal process that's followed by submitting the Subject Access Request should draw out all these charges, but the banks are well aware of the 'Statute of Limitations Act'. This basically limits their requirement, and your right to request information that is older than 6 years. There are other arguements and possible statutes that would force them in theory which for some - have been successful. In reality, the limitations act is a buffer they use to limit liability and the chance of previous charges being re-claimed.

In short - the Data Protection Act you quote is the right way to start that process of getting the info from their 'database'.

Regards
Perseus

	Subject Access Request A Subject Access Request is a demand which you can make to any organisation to disclose any personal information which they hold on you. The right to disclosure of data is provided by the Data Protection Act. There is no time limit. The organisation is obliged to reveal everything they have about you - which you ask for - as far back as you ask for. There are very few exceptions. It does not matter whether the data is held on microfiche, in an archive, on tape, in a cardex system, in sound recordings or in screen notes. Some companies are saying that they do not have to disclose where it would be difficult to do so - "disproportionate effort". This is untrue. Disproportionate effort refers to something else under the Act. If you are seeking bank charges information then you should ask for "all data held on you" and you should make it clear that you want everything as far back as it goes. Do not be put off by excuses. Do not accept being fobbed off. It is not in your bank's interest to make full disclosure to you. This means that it is in your interests to get it. If you have not started gathering your bank charges information yet, then you should start now. There will soon be a big rush once the OFT test case has been settled. Get all of your bank account informtion as far back as possible. At least as far back as 1995. If your bank says that they don't keep data as far back as this, don't accept it. Be persistent. They've got what you need in some form or other.

[Firecracker]

Hi there

Just thought I'd flag something up here, not sure if this has been mentioned before. When I started my claim against Barclays ages ago I opened a parachute account with A&L, just in case Barclays closed my account. However, things have dragged on a lot longer than I thought and now A&L have charged me a fiver for not using the account!!

Just something to bear in mind. I guess as the banks are dragging things out for so long this could happen to a lot of people?

	Parachute account "Parachute account" describes a second bank account opened expressly in order to avoid retaliatory action by a customer's usual bank once a bank charges claim had been commenced. The term "parachute account" was first used in this sense by BankFodder on the 22nd February 2006 and has since become part of general usage in this context. "parachute account" is used regularly by Martin Lewis of MoneySavingExpert.com and also by the National press.

[Perseus]

hi Firecracker

This doesn't surprise me one bit.
no doubt they've covered their asses with the charge in the T&C's, and I suppose they can offset it against the set up of a new account that has not been active.
I believe there will be more banks starting to enforce activity charges soon - they have to find some way or re-cooping their losses...

I wouldn't start chasing them for a refund yet - they aren't to customer friendly at that, and blows your parachute!
Is there any chance you could stick a tenner in a month - just to keep it ticking over?

Pers

[chancer]

Hi Firecracker,

I did read in a previous tread from ages ago that they cannot close your account due to you claiming against them. If I come accross it I'll post on here for you.

Originally Posted by Firecracker

Hi there

Just thought I'd flag something up here, not sure if this has been mentioned before. When I started my claim against Barclays ages ago I opened a parachute account with A&L, just in case Barclays closed my account. However, things have dragged on a lot longer than I thought and now A&L have charged me a fiver for not using the account!!

Just something to bear in mind. I guess as the banks are dragging things out for so long this could happen to a lot of people?

	Parachute account "Parachute account" describes a second bank account opened expressly in order to avoid retaliatory action by a customer's usual bank once a bank charges claim had been commenced. The term "parachute account" was first used in this sense by BankFodder on the 22nd February 2006 and has since become part of general usage in this context. "parachute account" is used regularly by Martin Lewis of MoneySavingExpert.com and also by the National press.

[Firecracker]

Pers - I have used the account a couple of times, I think they want my salary to go into it though, which is fair enough. The fee is for 'underfunding'.

I just thought as all the advice pretty much starts off with 'open an account somewhere else in case yours gets closed' it's worth taking into account that this may happen. As I am two grand overdrawn with B'clays I can't just pay my salary into another account to keep them happy - bit of a double edged sword really :/

[Perseus]

Understand that, and it's useful info to keep a perspective when parachute accounts are opened and left dormant - the new banks will get a little cheesed off waiting to see if you are going to use it or not.

Maybe by physically drawing some cash out of Barclays, and depositing it into the new account, it will keep them happier... if it's not needed after all, it's a way of saving too!

Pers

[lou5357]

I went into the Halifax yesterday and promtly told that as I don't have 'a proper current account' (sic) and only a cashcard account, the Halifax will be changing the way that it deals with people with either an easycash or cashcard account. It'll mean, the cashier said, I will no longer be able to use counter facilities. Any idea if other banks/building societies are following suit? I haven't opened a parachute account yet as I've had to apply to the DVLA for a duplicate licence - it's the only form of ID that I have. When choosing another bank, I want to be able to use counter facilities like everyone else. I'm really angry with them and feel like a second class citizen.

	Parachute account "Parachute account" describes a second bank account opened expressly in order to avoid retaliatory action by a customer's usual bank once a bank charges claim had been commenced. The term "parachute account" was first used in this sense by BankFodder on the 22nd February 2006 and has since become part of general usage in this context. "parachute account" is used regularly by Martin Lewis of MoneySavingExpert.com and also by the National press.

[Pacm0n]

Hi all, newbie here

After reading through this site I thought I would give it a go at reclaiming my bank charges. I've just sent by Data Protection Act to Lloyd TSB.

I was reading up about parachute accounts and just wondered if it was really necessary as I have a really bad credit history, no CCJ's just a lot of missed payments e.t.c on credit cards, direct debits and loans. I'm just thinking if I applied to a new bank they would take one look at my history and refuse my application?

Any advise would be very much appreciated.

	Bank Charges You should have started your claim for your bank charges by now. Don't wait. You should send your bank a Subject Acess Request asking for all personal data they hold on you - not just statements. You should calculate all of your bank charges and related interest as far back as 1995. You should send your bank a demand for a refund giving them 7 days. You should commence your legal action adding 8% statutory interest. If you wait for the outcome of the test case, you may not be able to claim like this. you may not be able to claim interest. You may only be offered the difference between the charge and the OFT "fair charge". The repayment scheme will try to limit you to refinds from 2001 only. A repayment scheme will not deal with any bank charges related defaults on the credit register whereas in a court action you can ask for these to be removed and to be compensated for the damage caused to you and your family by them. You should also write to the bank and to the CRA and put all charges related credit entries in disupte and warn them that you will want them removed from the Register when the test case is over. Warn them also that you are likely to be seeking compensation for these wrongful data entries. Full and final settlement Have you previously accepted a partial repayment of your bank charges in full settlement? You will still be able to claim the rest of your money back after the Test case is decided. Get all your information back to 1995 and put in your claim now.