Hardship claim advice please

[Stressed150]

Hi guys just wanted to find out if anyone can advise me on the following. I am in the process of claiming back unfair charges levied on to my account under the hardship rules. However, I own a second property which I do not live in, it is a rented out property from which I get an income, however, this does not cover the mortgage re-payments and I pay out of my own pocket towards this. I also have around £40,000 in debts, towards which I make token payments, and council tax arrears from when the property was vacant.

 

Currently have no income apart from rent, and have put in a claim for benefits, which is likely to be declined due to me having an income from second property (which has negative equity).

 

Has anyone out there claimed under similar circumstances and been successful?

 

Thanks in advance

[Stressed150]

Anybody?

[saintly_1]

Have you approached the Bank for repayment due to hardship ?

[yourbank]

Anybody?

My gut feeling and by all means please do write to the bank for consideration of hardship is that the fact that you own a second property will go against you.

[Stressed150]

My gut feeling and by all means please do write to the bank for consideration of hardship is that the fact that you own a second property will go against you.

 

 

This is my main concern, however, I am due to move into the property very soon as due to difficulties amongst my siblings I can no longer live in my parents home, also property has arrears and is in negative equity, so it's not really an asset of value! Have loan/credit card arrears, council tax arrears...

[Stressed150]

Saintly1.... I have put in a claim with Natwest, they sent me an income and expenditure form and am now waiting respone from the customer response unit...

[Stressed150]

Hi guys, had my hardship claim rejected today by Natwest, in their letter, they state:

 

"We have determined you do not fall wthin our criteria which classify 'Financial Hardship' because you are overspending on expenditure that is out with the common financial statement guidelines and therefore have sufficient income to meet your outgoings".

 

Now, my financial situation is, Mortgage arrears approx £6000 council tax arrears approx £350, Loan and credit card debts of around £30K, to which I am making token payments, I hve no income, apart from that which comes in from lodgers which all goes towards mortgage repayments, yes I have had a lump sum of £3000 go into my account last month which came from my father, however, that went to pay off one of my creditors who was threatening a charge on my property, it did not go towards mortgage as my lender has agreed to capitalise the arrears after 6 months....... I am unemployed and have been living off my parents, so can someone please clarify how I have sufficient income to cover my expenses if i was not overspending elsewhere?!?!! Am I reading into my situation all wrong??

Edited May 15, 2009 by Stressed150

[yourbank]

Hi guys, had my hardship claim rejected today by Natwest, in their letter, they state:

 

"We have determined you do not fall wthin our criteria which classify 'Financial Hardship' because you are overspending on expenditure that is out with the common financial statement guidelines and therefore have sufficient income to meet your outgoings".

 

Now, my financial situation is, Mortgage arrears approx £6000 council tax arrears approx £350, Loan and credit card debts of around £30K, to which I am making token payments, I hve no income, apart from that which comes in from lodgers which all goes towards mortgage repayments, yes I have had a lump sum of £3000 go into my account last month which came from my father, however, that went to pay off one of my creditors who was threatening a charge on my property, it did not go towards mortgage as my lender has agreed to capitalise the arrears after 6 months....... I am unemployed and have been living off my parents, so can someone please clarify how I have sufficient income to cover my expenses if i was not overspending elsewhere?!?!! Am I reading into my situation all wrong??

 

No matter how I put this, it will sound harsh. End the tenancy and sell the other property. There is no other way of putting it any other way. Or raise the rental income.

[Stressed150]

Also how do I work out the interest on the amoiunt I am claiming back?

[yourbank]

On interest you've got me bang to rights as I am useless at interest. Will ask site team on this one for you.

[Stressed150]

Yourbank, I appreciate your honesty, though my situation has changed from previous, as i am living in the property and have kept the tenants as lodgers, the rent they would pay me has not changed however, so I still make the same contribution towards the mortgage but now I will be paying towards th bills etc.... I cannot afford to sell the property as it is in negative equity, also I will have nowehere to go, otherwise this would be my first move..

[steven4064]

Interest calcualtion spreadsheets here http://www.consumerforums.com/resources/templates-library/48-bank-templates/118-interest-calculation-spreadsheets

 

INterest tutorial here - http://www.consumerforums.com/resources/templates-library/51-guidance-notes/233-interest-tutorial

[Stressed150]

Thank you Steven

[Stressed150]

Will be sending this letter to Natwest today, any advice would be appreciated guys......

 

Dear Sir/Madam

I acknowledge receipt of your letter dated xxx, the contents of which have been noted.

I was shocked to learn that you do not find me to meet your financial Hardship criteria, and will not therefore, be taking my claim forward. I wish to appeal this decision.

In your letter you state:

‘Following our review of the information you have provided, we have determined that you do not fall within our criteria which classify ‘Financial Hardship’ because you are overspending on expenditure that is out with the common financial statement guidelines and therefore have sufficient income to meet your ongoing commitments. Therefore, at present we will not look to take your case further and review your bank facilities’.

I would be grateful if you could clarify how you came to the conclusion that I am ‘overspending on expenditure that is out with the common financial statement guidelines’, by supplying me with evidence of the alleged overspending.

Furthermore, after supplying you with the full financial breakdown of my income and outgoings, please could you provide me with the relevant information you used to draw the conclusion that I would have sufficient income to meet my monthly expenditure.

I am unemployed and have arrears on my mortgage, council tax, loans and credit cards, evidence of which I have provided you with in my previous correspondence addressed to xxx dated xxx.

I am claiming back the amount xxx added in charges to my account plus the interest. If this claim is not settled xxx, the amount I will be claiming will increase to xxx as there is a charge of xxx pending on my account which is to be taken from my account on the xxx. I am also requesting the pending charge of xxx to be waived.

I will be happy to receive payment either by cheque posted to the above address, or as credit to my Natwest bank account (account number xxx sort code xxx) within the next 14 days.

If you are unable to provide me with satisfactory evidence of how you came to draw the conclusion that I do not meet the financial hardship criteria, I will be escalating my claim further via the Financial Ombudsman Service. If I am dissatisfied with the outcome of the investigation by FOS, I will further escalate my claim via the courts.

I hope to hear from you soon.

Regards

Stressed150

[Stressed150]

Bumping, wnt to send this letter today.... advice please

[saintly_1]

That looks fine to me

[Stressed150]

Thank you saintly1

[Stressed150]

Ok abit of good news on this guys, Natwest ave agreed to look back into my claim under hardship guidelines after I appealed their initial decision, and after having spoken to one of their cust service people, I found out that they came to their initial decision because some of the arrears letters I had sent were dated upto six months ago, however, she decided that these would be valid as evidence of financial hardshp after having looked through my bank account and seeing payments going out to creditors, mrtg etc.....!!!!!! Now awating response.....

[yourbank]

Ok abit of good news on this guys, Natwest ave agreed to look back into my claim under hardship guidelines after I appealed their initial decision, and after having spoken to one of their cust service people, I found out that they came to their initial decision because some of the arrears letters I had sent were dated upto six months ago, however, she decided that these would be valid as evidence of financial hardshp after having looked through my bank account and seeing payments going out to creditors, mrtg etc.....!!!!!! Now awating response.....

Have you got fresh arrears notices or something that might be fresher so to speak from the mortgage company ie statement of account?

[Stressed150]

well the thing is after I pointed out that my Natwest bank account is where my monthly payments along with the arrears are paid from, Natwest decided that this was sufficient evidence...!! I did'nt know wether to laugh or cry..!!!

 

The thing is, the only proof they now require is my credut cards and loans an although they can clearly see payments going to all my creditors from January to around April of this year, most of my creditors have agreed to hold all collection activity since then, as I have CCA'd them, although I do have proof of most of my debts in the form of annual statements etc, I do not have any other proof for my largest creditor to whom I have paid approx £100 each month from Jan till April....... do you have any advice on how I can get around this...?

[Stressed150]

BTW, I have looked on here for a hardship claim template, and can't find one, I want to re-claim my charges from a Halifax bank account that is now closed, does anyone know if there is one on here, or do I just approach the bank and request one of their forms...?

[texanbar]

I managed to find this one

x:)x

Letter for an application for consideration for hardship

 

 

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

 

 

 

Your Name

 

Your address

Date xx/xx/xx

Your Bank

Your banks Address

 

 

Dear Sir/Madam,

 

Notice of Consideration for Hardship Status

Claim reference Number xxxxxxxxx

Account number xxxxxxxxxx

 

Please find attached a detailed summary of my financial standing, as evidence in support of my claim/request, be treated sympathetically and speedily in view of hardship.

In making this request, I remind you of your duty to comply with conditions agreed in the waiver of July 2007 and continuation of July 2008 between yourselves and the FSA.

I look forward to acknowledgment of this, with an undertaking that you will proceed to process it, as per the requirements of the terms agreed within the waiver.

Yours Faithfully

xxxxxxxxxxxxx

Enc; Financial Statement.

Data protection act 1998.

I give my permission for you to process/use data related to me, in the course of processing my claim/inquiry to a satisfactory conclusion.

Signed xxxxxxxxxxxx Name xxxxxxxxxxxxx

Date xx/xx/xx

[Stressed150]

Thank you....do I include the amount of charges that I want refunded, or do I wait for them to respond first?

[Stressed150]

Bumping....

[texanbar]

Hi

 

umm sorry not sure on that one...you might want to tackle the refund on charges separately. If I was you, I would probably push the Hardship claim through first.

 

Maybe another cagger might be able to offer you something more. Sorry!

x:)x