Hi there,

I was wondering if someone could give me some advice/plan of action.

I had charges of £190 on my RBS account on one day in late October - the smallest d/d returned unpaid was £1.94, the largest £20.00. I am in receipt of benefits (Incapacity Benefit/Child Tax Credit) and I'm a single parent (not through choice!). Anyway, with the charges taken out of my account it left me with £7.00 for a fortnight .

I used a template letter from MoneySavingExpert website and sent it off to RBS as I thought the charges were excessive for the amounts involved. I heard nothing until March, when they sent me a Customer Financial Statement, which I duly filled in and returned Recorded Delivery. My finances leave me with £10 and a few pence spare per month. A letter from RBS today says that as my money covers all my outgoings then I do not fall into the Hardship category. I'm shocked that as Benefits are my only source of income at present that they do not consider this to be the case.

I'm thinking of appealing, but unsure how to go about it and would really appreciate some advice.

Thanks for reading this. Sorry I went on a bit!

Best wishes,

I'd tell them you're going to the FOS if they don't reconsider. The FOS have been quite quick with my claim so far. I wasn't even trying under a hardship claim but because I mentioned I'm on a DMP they've treated it as a hardship case.

Hi there,

 

I was wondering if someone could give me some advice/plan of action.

 

I had charges of £190 on my RBS account on one day in late October - the smallest d/d returned unpaid was £1.94, the largest £20.00. I am in receipt of benefits (Incapacity Benefit/Child Tax Credit) and I'm a single parent (not through choice!). Anyway, with the charges taken out of my account it left me with £7.00 for a fortnight .

 

I used a template letter from MoneySavingExpert website and sent it off to RBS as I thought the charges were excessive for the amounts involved. I heard nothing until March, when they sent me a Customer Financial Statement, which I duly filled in and returned Recorded Delivery. My finances leave me with £10 and a few pence spare per month. A letter from RBS today says that as my money covers all my outgoings then I do not fall into the Hardship category. I'm shocked that as Benefits are my only source of income at present that they do not consider this to be the case.

 

I'm thinking of appealing, but unsure how to go about it and would really appreciate some advice.

 

Thanks for reading this. Sorry I went on a bit!

Best wishes,

If you have no priority debt arrears(mortgage/rent, council tax, utilities) then I would agree with what they have said.

If you have no priority debt arrears(mortgage/rent, council tax, utilities) then I would agree with what they have said.

Given that Kitty La La was left with £7 to get by for a fortnight I consider that your comment is crassly insensitive at the very least.

Given that Kitty La La was left with £7 to get by for a fortnight I consider that your comment is crassly insensitive at the very least.

Do you want me to lie to the OP and say they are in financial hardship without priority debt arrears?

If the OP comes back and says that they have priority debt arrears then my view will change. But if not, I stand by that viewpoint.

I have been in a similar situation with HSBC. I have accumilated more that £500 bank charges within a year due to the reduction in my husbands hours. I contacted the bank and tried to get them to refund them, explaining that this would help prevent me going on a DMP. They still refused. I am now on a DMP and am wondering whether to contact the FOS to look into this situation further. I have no issue with the chrges being refunded to my DMP account. Does anyone think I would stand a chance with the FOS?

By the way, I have made a request to close my HSBC account but they have refused to do this which means I continue accumilating charges. They have stated that as I have a loan with them that is currently being repaid by the DMP at a reduced rate, I have to keep my account active. Is this right?

Hi there,

 

I was wondering if someone could give me some advice/plan of action.

 

I had charges of £190 on my RBS account on one day in late October - the smallest d/d returned unpaid was £1.94, the largest £20.00. I am in receipt of benefits (Incapacity Benefit/Child Tax Credit) and I'm a single parent (not through choice!). Anyway, with the charges taken out of my account it left me with £7.00 for a fortnight .

 

Does anyone realise how difficult it is to live on £7 for a fornight, especially when you're responsible for children of any age (the current age limit for CB is 19 PROVIDNG the young person is in higher education NOT further education!? Theres nothing there for emergencies etc etc. (ive been in this position)

 

My finances leave me with £10 and a few pence spare per month. A letter from RBS today says that as my money covers all my outgoings then I do not fall into the Hardship category. I'm shocked that as Benefits are my only source of income at present that they do not consider this to be the case.

Frankly, anyone who thinks its reasonable to be left with a little over £10 each month has never been there or has forgotten if they have. As far as Im aware, banks can use their discretion in these circumstances but you got to put up a very strong case. Especially with the RBS (b******s - dealt with them before - yuk!! )

Firstly, how many children and what ages (roughly if you prefer)

Secondly, did you include social activities within your customer financial statment? Because that is allowed you know, having had 3 of these done for me in the last year or 2.

Thirdly, change to a basic bank account to have your benefits paid in to so that they are not taken off you. That doesnt necessarily mean you have to close the one that you've got or default it (not a wise move).

Lastly, amongst your benefits do you get IS?

Im actually surprised that the bank didnt go through your CFS with you - my bank went through it over the phone with me then sent me a copy in the post. Also, I read somewhere else on the site to ask the DWP to speak to the bank BUT check it out with someone on here as its not simple (as I was informed!! ).

Ive got a link that I can give you where you can get free advice - they helped me a treat - but I cant guarantee this is an area they deal with.

It might be an idea asking the DWP what they consider the conditions are for a hardship case.

Let us know how it goes or if you need further help.

I am now on a DMP and am wondering whether to contact the FOS to look into this situation further. I have no issue with the chrges being refunded to my DMP account.

 

By the way, I have made a request to close my HSBC account but they have refused to do this which means I continue accumilating charges. They have stated that as I have a loan with them that is currently being repaid by the DMP at a reduced rate, I have to keep my account active. Is this right?

Is the DMP with them?

Do you want me to lie to the OP and say they are in financial hardship without priority debt arrears?

If the OP comes back and says that they have priority debt arrears then my view will change. But if not, I stand by that viewpoint.

It wasn't what you said, but the way that you said it that I find crass...I was under the impression that we are all friends here. A little less terse and a little more support might not go amiss next time.

It wasn't what you said, but the way that you said it that I find crass...I was under the impression that we are all friends here. A little less terse and a little more support might not go amiss next time.

What would you like me to say? Support sometimes means saying the truth no matter how hard that you might feel it to be. If the OP does not have Priority Debt arrears then the bank and the FOS will say they are not in hardship and I would agree. Have I missed something?

Ok, lets stop arguing about what was said and how it was said - its unproductive in this case. Can we be more proactive and focus on helping kitty_la_la with her problem?

Have I missed something?

Well, kitty_la_la didnt actually state whether she had arrears of any sort or not - it may be that she has and doesnt want to disclose them, nor was it stated whether this is a frequent problem - if it is a more frequent problem, then the bank should be made aware, also it was not stated if there is a an arranged overdraft facility. We have no idea how many d/d's were returned - only the total given for the charges.

'Financial Services Authority’s official definition:

Also, banks do have discretion, and the point is that just because they refused to consider your current situation does not mean thats the end of it. They're first response is most likely to be negative.

If you feel you really cant cope with dealing with this by yourself then contact the CCCS as they will assess you separately which may help.

most of all DO NOT GIVE UP, even if it does mean getting help from an outside agency.

I think people here can only give you more advise if you supply a lit more detail- that doesnt mean you have to reveal your soul or anything like that!! But if you want considered advice, perhaps a wee bit more detail such as (but not necessarily all):

Is this a frequent problem for you?

How many d/d's were bounced?

Are you in receipt of any amount of Income Support? That does actually make a difference.

Is it a basic or current account

Do you have an arranged overdraft facility?

Have you used their complaints proceedure?

yourbank post #3, is technically correct but in order to appeal to your banks discretion you must keep up a good dialogue with them - they are more likely to want to help in that case.

Thanks, that is where I was going and RBS/NatWest do tend to be paying out mostly on priority debt arrears so until we know more, it is difficult to advise further.

Is the DMP with them?

The DMP is with Payplan. I have asked Payplan to include my O/D and loan with Natwest in the repayments.

By the way, I have made a request to close my HSBC account but they have refused to do this which means I continue accumilating charges. They have stated that as I have a loan with them that is currently being repaid by the DMP at a reduced rate, I have to keep my account active. Is this right?

Hmm...Ive always been wary of DMP's but thats by the by ....May I ask if you still have your income paid into the HSBC or have you opened a new account as Payplan suggest?

In any case, its seems completely unreasonable to me that they continue to add charges to your account despite notifying them of your arrangements?

Did you put your request in writing detailing you DMP? If you have, then the next thing you should do is put a complaint in writing - I say that because the FOS prefer if you have done that first - and it means youve covered your basis. Ive read HSBC's 'how to complain' at the end of their banking terms & conditions (both my sons are with HSBC so I have copies of HSBC's regs & changes etc). The complaints procedure instructions are extremely vague IMHO, they dont indicate timescales or anything - just that they will rectify things asap.

If you've already gone throught their complaints procedure, I would approach the FOS for advice.

If not, then complain & keep payplan in the loop - might be worth asking them for advice first?

Hello

and a big thank you to everyone who took the time to look at my post. I'm sorry I haven't been on here since - using a friend's internet access.

To answer a few of the questions, I have one 17month old boy, but at the time of the bank charges he was 10 months old. It was very distressing to be left with the £7.00 as it left next to nothing to feed him with (I do now receive Healthy Start vouchers but didn't at the time). My grandmother did infact help me out financially and I'm very lucky she did, however it's somewhat embarrassing having to ask your 86year old Nan to lend you money when you're a grown up 38!

I do not have any debts or arrears save for an overpayment of Housing Benefit which I pay back at £20 a fortnight. Prior to these charges my account had been in good order for at least 4 years, and only back then did I get the occasional charge (maybe 1 or 2 a year). They took all the direct debits on the same day - they were from PayPal and there was no specific date that PayPal took them, just as and when I bought something, but on this occasion I'd bought a number of items in around 1 week and they saved them up and requested them in a bunch. Yes, I should have kept a closer eye on my account and since this happened I do. I am able to access my account balance online or through my mobile phone. So I have learnt my lesson at least. It was just the shock of the charges being taken out on one day and the fact that in one instance a d/d of £1.94 incurred a charge of £38.00!

My first reaction on receiving the letter saying I did not qualify under the Hardship criteria was one of disbelief and a little anger, although I did restrain myself from phoning them. I'm thinking maybe I should ring them though and ask for it to be reconsidered, given that at the time I was left with just the £7.00 for a fortnight, and the fact that I manage my money carefully now, doesn't alter the fact that the taking of these charges did indeed leave me in severe financial hardship.

Worth a try?

Many thanks to you all

Best wishes,

K

Benefits received are: Incapacity Benefit (higher rate); child tax credit (also higher rate) and the standard child benefit.

kitty_la_la, do not phone them. Put everything in writing. If you look around this site you will see how often this advice is given (& not always with regards to DCA'S).

Personally I would write for a complete copy of their compaints proceedure and their criteria for hardship cases.

Once you have those, you can make an informed decision as to whether or not you want to make a complaint and if it warrants further consideration using help from an outside organisation such as the CCCS.

i cant believe the banks think anyone can live on £7 for a fortnight and isnt in hardship. to be honest I dont give a toss about my debts. They cant have what I havent got but i just want to be able to feed my kids properly and buy them decent shoes. my sister gives me her kids old clothes so i can clothe them but i cant use worn out shoes on them.

This may help a bit if you want to appeal back to the bank.

V) firms to provide a range of measures to support customers and to treat them positively and sympathetically

nb2)firms are also refered to sections 14.2 and 14.3 of the guidance to the banking code.

these might include: help and guidance about dealing with fd and avoiding charges; suspending collections and recovery activity; suspending accrual of further interest and charges; consideration of a refund of charges, in particular where the charges may have added to the FD during, or immediately before, the period of FD. The rationale for why a particular level of refund has been given should be documented and clearly explained to the complainant.

I think you can clearly show the charges put you in severe difficulty.

This is from a formal letter from the FSA to the banks back in March.

I would definately appeal the decision and take the case to the financial ombudsman.

Hello

I do not have any debts or arrears save for an overpayment of Housing Benefit which I pay back at £20 a fortnight.

If the benefits agency made a mistake when calculating your housing benefits and the overpayment then occurred, they cannot claw it back under section 99 paragragh 2 of the Housing Act. See The Housing Benefit (General) Regulations 1987 If it was an oversight on your part, then you are stuck with it unfortunately.

You mention part of your income is from Incapacity Benefit. Have you spoken to someone at the Citizens Advice Bureaux to see if you might qualify for any other disability benefits.