HELP - What next?

[onthebrink]

Hi all,

 

As you can see I'm new here, so please help

 

I went over my authorised overdraft limit by £26.24 and noticed in January that £5 per day was added to the account. Out of principle I refused to return the account back into balance. I wrote to the bank to complain about the charges and got the normal 'we acknoweldge your complaint but due to the court case....we will get back to your when hell freezes'.

 

Since then they have been adding £150 per month onto the account and the original £1026.24 has turned into £1606+ and is likely to keep increasing.

 

I am worried the A&L will argue that £5 per day is a 'reasonable and fair' charge compared to £25 (which is what the court case seems to be looking at). My 'wait for the court to decide' attitude may actually prove a stupid move and I could be left with a MASSIVE debt.

 

What do i do?

 

I cannot afford to pay off £600 to stop the charges increasing, and when I submitted my complaint the charges I detailed only amounted to £125.

 

Can someone PLEASE answer these ?

 

1) Will the bank (if they lose) refund all the 'unathorised overdraft charges' or only the amount I stated in my original letter?

 

2) Do I need to write and request they stop adding this charge? Will they comply?

 

3) Should I take out a loan to payoff the £600 in order to stop the charges.

 

4) Should I continue to pursue them through the court as the step by step guide says, or should I just wait and expect the bank to act when the court case is determined.

 

This court case is likely to go on for months and my debt is increasing at an alarming rate by the day.

 

:confused:

 

Any help is most appreciated.

[onthebrink]

Any help?????

 

Pretty Please

[onthebrink]

I think most should know this, but thanks for pointing me in the right direction.

 

Taken from the Halifax website:

 

What will happen to customer complaints about unarranged overdraft bank charges?

Banks and building societies will not be dealing with or resolving customer complaints on unarranged overdraft bank charges while the test case is running.

If you do complain about your unarranged overdraft bank charges, we will write to tell you that we have received your complaint and that we will record it on your file. When a final decision is reached in the test case, we will contact you as soon as possible to tell you how we will resolve your complaint. We will apply the decision in the court case to all complaints we receive.

 

Why are the banks allowed to stop dealing with unarranged overdraft bank charge complaints during the test case?

The banks applied to the Financial Services Authority (FSA) for a suspension of the normal timetable for banks to deal with unarranged overdraft bank charge complaints. The FSA decided that, in the circumstances it was appropriate to grant a suspension of the banks obligations under their complaint handling rules while the banks sought legal certainty on this issue (which is now affecting more than 100,000 UK customers). The conditions of the suspension are designed to protect customers' rights and ensure that customers won't be materially adversely impacted by the suspension.

The FSA's suspension direction can be found on the FSA's website: www.fsa.gov.uk .

 

Can I make a court claim for a refund during the test case?

Yes, but we will apply to the court to put your case on hold while the test case is running. This is because the issues being raised in customer complaints on unarranged overdraft bank charges are being considered in the test case.

 

Can I complain to the Financial Ombudsman Service about my unarranged overdraft bank charges?

Yes, you can make a complaint but it will not be reviewed while the test case is running.

The Financial Ombudsman Service (FOS) has decided not to review complaints while the test case is running. If you do complain to FOS, they will respond to you confirming their position directly.

 

How long will the "test case" take?

At this time it is too soon to give any timescales for a conclusion to the "test case" but we expect it to go for more than a year.

We have agreed with the OFT and the FSA to conduct the test case in an efficient, prompt and orderly way.

We will continue to post updates on our website to keep customers informed of progress on the test case.

 

Will I be compensated for this delay?

Should the test case resolve that the bank is due to pay money to you, any amounts paid to you will include an element of interest to compensate you for the delay in any payment due to you.:grin:

 

Why hasn't a case been taken to court before now?

We have been working closely with the OFT as part of its enquiry. Within this we have discussed the option of taking a "test case" to court and a decision has now been made by the parties to take this forward.

 

Why wasn't a "test case" on credit card charges taken to court?

The OFT made a ruling based on its interpretation and understanding of the law. This has not been tested in the courts and remains open to legal challenge.

 

Is the OFT suing you?

This action has been mutually agreed by the banks and the OFT in order to provide legal certainty over the issue of unarranged overdraft bank charges.

 

Will I still incur charges while the test case is on-going?

Yes, your account is still subject to the usual terms and conditions whilst the case is on-going. :mad:

 

Will my bank account be frozen while the test case is ongoing?

No, your account can be operated as normal and is still subject to the usual terms and conditions whilst the case is on-going.

 

For the full article by the Halifax see the link:

Halifax - Bank Accounts - Bank Charges Q&As

[maroondevo52]

Hi, Onthebrink.

 

 

Yes, continue with your claim. The next letter to send is your LBA......

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/92-3-letter-before-action.html

 

I don't think anyone knows how long the 'test case' will last.

If you can borrow the money from someone to pay of what's due to stop you incurring even more charges, I think you should.

The bank will not stop adding charges to your account. But remember you can re-claim all their charges, right up until you file at court.

 

You should not wait until the court case is over.......

 

http://www.consumeractiongroup.co.uk/forum/general/107550-oft-test-claim-what.html

 

 

Regards.

 

Scott.

[Conniff]

I am worried the A&L will argue that £5 per day is a 'reasonable and fair' charge compared to £25 (which is what the court case seems to be looking at). My 'wait for the court to decide' attitude may actually prove a stupid move and I could be left with a MASSIVE debt.

 

If £5 per day is reasonable then why don't they pay £5 interest per day on a £25 deposit.

They have in fact upped their charges, it used to be £35 and another £35 in five days if not brought back into the black.

Now from what you say £5 per day that is double what they used to charge.

 

They just continue to rip off but put it under another guise.

 

The very best of luck with your claim.

[Razmustinkle]

I have been asking the A&L how they are charging me £45 for being over my overdraft for 9 days which turns out to be only 3 days when I go through my bank statements. I did not understand the information given over the phone at all and am now going to ask for an explanation in writing. I have only been with the A&L for about six months and it has cost me more than I have ever experienced before. I will be looking to change my bank and will be persuing the A&L for these disgraceful charges!

 

I fully intend bringing this to the attention of the MP from Cornwall who is trying to force the banks to get realistic. £5 per day is NOT acceptable!!

[onthebrink]

Hi, Onthebrink.

 

 

Yes, continue with your claim. The next letter to send is your LBA......

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/92-3-letter-before-action.html

 

I don't think anyone knows how long the 'test case' will last.

If you can borrow the money from someone to pay of what's due to stop you incurring even more charges, I think you should.

The bank will not stop adding charges to your account. But remember you can re-claim all their charges, right up until you file at court.

 

You should not wait until the court case is over.......

 

http://www.consumeractiongroup.co.uk/forum/general/107550-oft-test-claim-what.html

 

 

Regards.

 

Scott.

 

 

Thanks for that. Much appreciated.

[onthebrink]

If £5 per day is reasonable then why don't they pay £5 interest per day on a £25 deposit.

They have in fact upped their charges, it used to be £35 and another £35 in five days if not brought back into the black.

Now from what you say £5 per day that is double what they used to charge.

 

They just continue to rip off but put it under another guise.

 

The very best of luck with your claim.

 

 

I agree and thanks.

[onthebrink]

I have been asking the A&L how they are charging me £45 for being over my overdraft for 9 days which turns out to be only 3 days when I go through my bank statements. I did not understand the information given over the phone at all and am now going to ask for an explanation in writing. I have only been with the A&L for about six months and it has cost me more than I have ever experienced before. I will be looking to change my bank and will be persuing the A&L for these disgraceful charges!

 

I fully intend bringing this to the attention of the MP from Cornwall who is trying to force the banks to get realistic. £5 per day is NOT acceptable!!

 

Good on ya. Me too. Now where's that letter.

[Michael Browne]

OFT Update March 11th:

The Office of Fair Trading: Questions and answers for OFT personal current account work

 

8. The test case hearing has finished, so what happens now?

We are anticipating that judgment will be handed down by the end of July, although we have no firm information about this