Hi Guys,

Have read a few threads below about this and see its a common enough situation for Nationwide to disagree that you are a hardship case.

In our instance they said our previous good handling of our account meant that they didnt class us as hardship cases....

So because we struggled to pay our bills, but pay them we did, that now makes us ineligible for hardship.

It took a face to face meeting with a senior member of collections for them to agree we are now hardship cases, but they then went on to say that we are only entitled to a refund of any charges added to our accounts since they classed us as being in hardship, just over 8 months ago.

That means the bulk of our reclaim of charges, will be stayed - according to them - until the outcome of the bank charges rulling.

Is this correct? Because it would make a huge difference to us if we could go after them for the full amount plus interest.

Thanks,

meerkat x

Hi Guys,

 

Have read a few threads below about this and see its a common enough situation for Nationwide to disagree that you are a hardship case.

 

In our instance they said our previous good handling of our account meant that they didnt class us as hardship cases....

 

So because we struggled to pay our bills, but pay them we did, that now makes us ineligible for hardship.

 

It took a face to face meeting with a senior member of collections for them to agree we are now hardship cases, but they then went on to say that we are only entitled to a refund of any charges added to our accounts since they classed us as being in hardship, just over 8 months ago.

 

That means the bulk of our reclaim of charges, will be stayed - according to them - until the outcome of the bank charges rulling.

 

Is this correct? Because it would make a huge difference to us if we could go after them for the full amount plus interest.

 

Thanks,

 

meerkat x

The asnwer is yes and no. I would say that the way you argue the case is with regards to firstly what caused the charges since there was a deficiency in funds to cover outgoings so for example, loss of job, less hours, etc,etc could be a reason. Then the effect the charges had on you being able to service your priority creditors. That is where hardship comes into the equation. The next issue is about what you want them to do to resolve the financial hardship so maybe what we need is payment of priority debts plus, if the account is over the limit of the account, a refund to take it under the limit plus a suspension of charges for say 3 months to help you budget to cover those priority creditors. The amount you may come up with might be lower than the amount owed, however, it will alleviate hardship and the rest of the charges are still on the table for when the OFT test case issues are resolved.

Hi Yourbank,

Thanks for replying.

I have a disputed amount of charges on these accounts, amounting to just over a third of the outstanding overdrafts. Once contractual and statutory interest would be added this would bring them to a level where the amount I owe them is pretty much covered by what they owe me.

And here within lies the problem.

As we dispute the amount owed, then they surely cannot try and collect this amount by way of DCA? (which is what they are trying to do).

We have not added any interest to our claim, but had thought to perhaps suggest that given that they have stayed the bulk of our claim due to us not being in hardship at the time the penalty charges were levied, then surely we should be able to get them to agree to stop any demands for payment of this disputed amount (with interest - so the full amount we owe them), until they get a definitive answer with regards the bank charges issues from the courts?

To me, that seems reasonable, and doesnt state that we wont pay, but simply gives us the same breathing space that the courts have granted them.

As it stands they would like us to agree to a voluntary charge against our property for the full amount of the overdrafts.

Have you known of such circumstances to take place?

Can they expect to get a charge for this full amount even though we dispute it?

Thanks,

meerkat x

My personal opinion only on this one is simply to write to the bank and state that, ie "I will settle the account balance or make repayment plans on the conclusion of the OFt test case issues". The main reason I say this is because it is a reasonable step to take and they cannot shut it or pass it on and the FOS will clearly see that you are being reasonable should you ever need to complain if the bank do play hardball.

Hi Yourbank,

Thank you for your very quick response.

Just for clarification, can they not collect on either account that has a dispute on it, until they settle the disputed amounts?

Or instead, they cannot collect the disputed amounts, however they can dispute the remaining balance over and above the disputed amount?

If its the later, thats why I am inclined to make them aware that we would be claiming the contractual interest that the NW used to charge up until June 09, being 24.9%, plus the 8% statutory. Then the whole amount is in dispute.

To be honest, I think that is fair, and gives us a fighting chance at either repaying it, reclaiming it, or finding an amicable solution further down the line. It also buys us time to deal with our other issues.

meerkat x

You are going back to July 2001 under the waiver, right?

All our charges are after 2001, yes.

Hello guest!

Do not under any circumstances give them a voluntary charge. Make them fight for it. The money is yours and you shold not allow them to have any kind of hold on your property for your own money.

There is even a risk down the line that they could argue that as you consented to the charge, that you in some way have accepted their mistake.

Make them fight and frankly I htink that is now time that you gave them notice that you are now abandoning the discussion

Hi BankFodder,

I hear you on the Voluntary Charge front - just seems like such a good option on the face of it if it was one less creditor snapping at our heels - or in this case 3 of 15 individual accounts we are trying to get sorted - 20% of our outstanding debt.

The only thing stopping us taking this 'easy way out' is that we know the charges are more than likely to come back our way, plus to date the credit card debt they are also offering to encompass in the VC has yet to be seen to have a valid CA, and was terminated when full payment was requested in a default!

We have until mid July to get back to them Re the voluntary charge so we are 'pondering' our response.

Is it right that we'll have to fight for the other charges that were levied to the account prior to us becoming a hardship case?

Meerkat xx

p.s. think i've been refunded the other charges since we have been considered a hardship case - refunded to account we can no longer access and they then in turn levied more charges!