Nationwide Bank Charge and on benefits

[minmac]

Hi, I just had a phonecall from my very upset friend, she knows I come here often and thought I might be able to help.

 

She is on job seekers allowance. She receives £114 per fortnight. She lives by herself so therefore has to pay her gas, electric, water and buy food out of this.

 

She has a landline phone that her parents pay for her. In july this year she switched to talk talk and when her first bill arrived on 28th august it said payment will be taken from your acc on 25th august.

She phoned her bank and they confirmed the dd had bounced.

Talk talk actually sent the bill to her sometime early-august I guess because of the postal strike she didnt receive it until it was too late to get the £ from her parents to pay in.

 

A few days later she got a letter from the bank stating that £30 charge will be taken out of her acc in 28days. She called them and asked for it to be waived explained what had happened, also that it was the 1st ever charge she had incurred and that she is on benefits.

 

They sent a letter back saying no, still going to take charge out.

 

She appealed it stating it would cause her severe financial genuine hardship to take so much from her benefits.

They sent another letter saying no, still going to deduct £30.

 

So I get the upset and teary phonecall today.

 

What should her next move be? Or is it the end and she will have to pay? (well I say have to pay its not like she has a choice as the banks just take it)

[haggis1984]

Have a look at this thread:

 

http://www.consumeractiongroup.co.uk/forum/benefits-tax-credits-minimum/125278-your-bank-taking-your.html

 

From what youve said so far it seems like the bank are digging their heels in. Has your friend considered moving her account? Also, DWP can issue payments by cheque rather than straight into the bank account.

[Mydogsawestie]

The mean B-ggers!!! Sorry to read the circumstance your friend is in.

 

My husband had a charge on his acct applied similar to that & rang up RBS about it & he was told to write in. He did and they did refund it on that occasion. Which bank is it that are being so mean, name & shame them thats what I say!!

[minmac]

Thanks for the replies, its nationwide, its the first charge she has ever received, so you think they would quash it this once.

 

Thanks haggis, going to the link now.

[indebtstudent]

I believe for a direct debit they are supposed to give at least ten days notice? As you say they can try and hide behind the postal strike.

 

However there is the option of reclaiming the amount of the direct debit via direct debit guarantee. Then you can go back to Nationwide and say as the charge was the result of a payment which was made contrary to the direct debit guarantee (ie you weren't notified of the amout), and the amount has been returned, the charge cannot stand.

 

Some time ago Nationwide would ALWAYS refund a first charge but they changed it to only in certain circumstances like bereavement.

 

BTW how much did the transaction take the account overdrawn? Cost they should stil refund if it took the account over by less than £30 (unless its changed since I left, hey it has been voer a year).

 

I do think this approach bank all banks and building societes is absurd. The account holder is on a low income, which they can clearly see, there seems no doubt the charge could snowball and they will not back down.

 

The only saving grace here is the charge is not applied immediately. If as the banks say these charges are now (miraculously!) service charges then they should be invoiced for and paid seperately to the bank account - just like the phone bill!!!!!!

[indebtstudent]

"She has a landline phone that her parents pay for her. In july this year she switched to talk talk and when her first bill arrived on 28th august it said payment will be taken from your acc on 25th august.

She phoned her bank and they confirmed the dd had bounced."

 

Why does she have a DD if it is paid by parents? Why not just set it up on thier account?

 

Clearly it depends how close you are to your friend but once this is resolved I'd say it is worth exploring alternatives to DD's. Its can often cost more but one charge wipes out any saving you make.

[minmac]

indebtstudent - its paid for by her parents as she cant afford to pay it herself, the phone is in her name and is at her address her parents are only paying while she is looking for work. Setting it up on her parents would be an option but its no big deal her dad giving her the money every month and she pays it into her bank. Since how its in her name at her addy and she will be taking over payments once she gets a job.

 

Thanks for all the help everyone, as it stands the bank is refusing to budge, her dad is going to pay the £30 for her so it doesnt spiral out of control. He is not at all happy with this, he doesnt mind helping with buying food, gas electric etc for her but he is livid about this as he made it clear he will help her with anything apart from paying unimportant debts.

 

I told her as soon as the bank take it she should claim it back but I get the feeling she just wants it all to be done with so she can go back to looking for a job.

[indebtstudent]

Well from the available info I would play on the potential breach of the direct debit guarantee. I am not sure how much they can rely on the post as an excuse, they cannot prove that the mail was recieved before the due date.

 

Under the circumstances best I can suggest is get the bank to do a DD indemnity, then complain if an indemnity claim (ie a refund) was done for the for the transaction which caused the charge then the charge cannot stand. Make if clear you will complain to the FOS on this point.

 

If they refuse or eight weeks elapse complain to the FOS. If that fails then I'm afraid usualy reclaim process applies and your are stayed like the rest of us.

[minmac]

Just an update.

 

My friend phoned NW again to try to have the charges droppred and they (again) said no.

 

The charge was taken out on wednesday.

 

I went to my friends Fri phoned NW (pretending to be my friend) and said I am going to complain to the ombudsman and immediately put in a claim for the money back using the extreme hardship route. I also said other things about greed, above the law etc etc.

 

Well on sat my friend got a letter (from NW saying the charge will be refunded!!! Yay.

So after all those ''nos'' I phoned up and said things I have found out about from this very site (hardship cases not being stayed etc etc ) and they back down. I didnt even know if all the things I was saying were right, lol there is so much info on here its sometimes confusing.

 

Small victory for the consumer!! yay xx

[Mydogsawestie]

Well done glad to hear of success stories.....seems Which was reporting on a couple of banks (RBS & Natwest) recently reducing their charges from 1st Oct 09 - about time too....

Which? welcomes lower RBS bank charges - Which? News