Bank extended overdraft to unmanagable amount despite me being on benefits

[kaytee]

hi new to this site and hope to find help, i was offerd a over draft on my account of a few hundred pound which i used a few year ago when moveing home due to haveing my first child, i got to the point where i was struggling and askd for my over draft to be extended by another 100 pound, i was told they could not offer me just hunderd i had to get the limited amount which was £1200 bareing in mind they knew i was on benifits and would take time to pay it back. so thinking i wouldnt use that amount i accepted and just take out what i needed, times got hard and slowly i fell into the whole debt, then within time they started charging me intrest fees and giving me charges... my only income was my benifits which was for me and my son to live off..food, bills, clotheing BUT as soon as my benifits were payed into my bank natwest snached it, they took payments out of my bank for the charges and some weeks i was left with absolutly nothing... still to this day they want me to pay it back but can i not do anything to claim the benifits they took? in the end i had to change bank but still not happy natwest left me and my son with nothing, i had to pawn in gold which was bought as presents just so i could buy gas n electric and basic food... hard times!! can i not do anything to claim that money bak? plz help

Edited June 17, 2011 by MARTIN3030

[teaboy2]

hi new to this site and hope to find help, i was offerd a over draft on my account of a few hundred pound which i used a few year ago when moveing home due to haveing my first child, i got to the point where i was struggling and askd for my over draft to be extended by another 100 pound, i was told they could not offer me just hunderd i had to get the limited amount which was £1200 bareing in mind they knew i was on benifits and would take time to pay it back. so thinking i wouldnt use that amount i accepted and just take out what i needed, times got hard and slowly i fell into the whole debt, then within time they started charging me intrest fees and giving me charges... my only income was my benifits which was for me and my son to live off..food, bills, clotheing BUT as soon as my benifits were payed into my bank natwest snached it, they took payments out of my bank for the charges and some weeks i was left with absolutly nothing... still to this day they want me to pay it back but can i not do anything to claim the benifits they took? in the end i had to change bank but still not happy natwest left me and my son with nothing, i had to pawn in gold which was bought as presents just so i could buy gas n electric and basic food... hard times!! can i not do anything to claim that money bak? plz help

 

Hi Kaytee

 

I feel you will get more adquete advice in relation to your direct circumstances you outlined in your post by having a thread of your own. So i have notified the site team to come along and move your post into its own thread - From there you will get the advice you need in relation to your issue with natwest.

 

One point i would note is by giving you £1200 overdraft instead on £100 as you request and were subsquently refused for in favour of a limit of £1200 - Then i would say they were acting in breach of section 25 (2B) of the consumer credit act 1974 as amended in the consumer credit act 2006 amendments to the 1974 act. Which came into force in April 2008.

 

So when did you ask for the overdraft - Before or after april 2008?

 

Though there is a couple of court cases that are going to test the Lawfulness or fairness of bank charges later this year, and they have been discribed as being cases that are indefensible in regards to the banks trying to defend against. So the out come of those cases are looking in consumer favour and will, hopefully, if successful entitle you to reclaim such charges.

Edited June 16, 2011 by teaboy2

[BRIGADIER2JCS]

The bank can offset from one account to another,but if they are aware that a persons income is bade uo solely of benefit

they should not touch it.

Your problem is I think that you may have left it to long to complain and would have difficulty claiming it back.

Others may be able to help when they are available.

[MARTIN3030]

Kaytee,welcome to the site.

Have created a thread of your own and moved here.

From what you say so far,it does seem that the bank have been reckless and failed in their obligations to follow codes of practice,and fair business practices.

In fact their actions here could also be viewed as them creating an unfair relationship.

We need to establish how this was done and what supporting evidence you have.

Can you please answer the following questions;

1.Have you been in rec of benefits for the duration of all your complaints ?

 

2.When did you first make them aware that you were on benefits,and how was this done ?

 

3.What was their response when you contacted them and how was this done ?

 

4.What was the timeframe between you alerting them of financial difficulties and them responding and how was this done ?

 

5.Do you have a log of dates / any letters that support the complaint/the way they were dealing ?

 

6.When they extended the overdraft-how long was it before they took charges from this-and what was the amounts ?

 

7.Have you been refunded with any charges at all on this account ?

 

8.If you have not had any charges refunded,did you make a request for this and when/how was this done ?

[MARTIN3030]

Kaytee,welcome to the site.

Have created a thread of your own and moved here.

From what you say so far,it does seem that the bank have been reckless and failed in their obligations to follow codes of practice,and fair business practices.

In fact their actions here could also be viewed as them creating an unfair relationship.

We need to establish how this was done and what supporting evidence you have.

Can you please answer the following questions;

1.Have you been in rec of benefits for the duration of all your complaints ?

 

2.When did you first make them aware that you were on benefits,and how was this done ?

 

3.What was their response when you contacted them and how was this done ?

 

4.What was the timeframe between you alerting them of financial difficulties and them responding and how was this done ?

 

5.Do you have a log of dates / any letters that support the complaint/the way they were dealing ?

 

6.When they extended the overdraft-how long was it before they took charges from this-and what was the amounts ?

 

7.Have you been refunded with any charges at all on this account ?

 

8.If you have not had any charges refunded,did you make a request for this and when/how was this done ?

 

 

My opinion is that you need to be doing a full Subject Access request even if you do already have some info.

The reason being that this should get everything needed to take them on with this and put together a case with the proof.

The SAR will need to be very specific so they will HAVE to provide the evidence needed.

Once you have that,they can be put on notice that you will refer it to the FOS,who from what you have told,will almost certainly uphold in your favour.

Before this,its a case of getting together the material docs that will establish their failures.

[jadeybags]

You didnt have to use the overdraft? If you are of sane mind, I think you should have to pay back what you borrowed. That's just me though, the country is in a bad way partly because people didn't pay back what they borrowed from it. But I do know of one person that had credit card debts of 15k & used the argument that they were on benefits when they were given these credit cards.

On the ball enough to go bancrupt & have the debts written off, but not enough to not spend it in the first place. It does seem to work that one, so you'll probably be ok.

[seen this before]

they must have known because the payments state that its from the dwp and say jobseekers allowance,it looks like another case of irresponsible lending.normally basic accounts do not have overdraft facilities but if you on the system as being on benefits there isnt any justification for lending like this.

 

www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

 

i natwest left me and my son with nothing, i had to pawn in gold which was bought as presents just so i could buy gas n electric and basic food... hard times!! can i not do anything to claim that money bak? plz help

 

the financial onbudsman service would be able to help if the explanation is not what it should be,look into the cputr also.

[MARTIN3030]

"You didnt have to use the overdraft? If you are of sane mind, I think you should have to pay back what you borrowed."

 

jadeybags,the op has not come here to be lectured on their sanity,or the ethics of making financial decisions.

Please keep your comments to helping or offering advice,or dont post here at all.

[Life-Goes-On]

IMO the bank was wrong giving so much of an overdraft when a much lesser amount was asked for. But I don't think being on benefits should automatically stop a person having an overdraft.

[rebel11]

Creditors have to take some of the blame, they offered credit like it was going out of fashion. In a nutshell, they never checked peoples ability to pay back the money. The creditors should of said 'no'. That brings us to the 'cart before the horse'. Many years ago it took 2 weeks to get a £500 loan, today it

takes 3 seconds, infact they send you pre-filled cheques with £500 printed on them.

 

You didnt have to use the overdraft? If you are of sane mind, I think you should have to pay back what you borrowed. That's just me though, the country is in a bad way partly because people didn't pay back what they borrowed from it. But I do know of one person that had credit card debts of 15k & used the argument that they were on benefits when they were given these credit cards.

On the ball enough to go bancrupt & have the debts written off, but not enough to not spend it in the first place. It does seem to work that one, so you'll probably be ok.

[Nystagmite]

IMO the bank was wrong giving so much of an overdraft when a much lesser amount was asked for. But I don't think being on benefits should automatically stop a person having an overdraft.

 

I agree. I've personally had no problems with that - I asked for £200 OD and got the £200. Although, could've got up to £500.

[jadeybags]

"You didnt have to use the overdraft? If you are of sane mind, I think you should have to pay back what you borrowed."

 

jadeybags,the op has not come here to be lectured on their sanity,or the ethics of making financial decisions.

Please keep your comments to helping or offering advice,or dont post here at all.

 

Hint taken, & understood....

[seen this before]

IMO the bank was wrong giving so much of an overdraft when a much lesser amount was asked for. But I don't think being on benefits should automatically stop a person having an overdraft.

 

its the reckless way amounts are given,people on benefits are more likely to be exposed to the consequences "charges" its unfair.benefits and banks don't go it can be said exclusion but there are risks using them with the results such as here.

[Nystagmite]

I agree. I was told I'm not entitled to a credit card (don't want one anyway) because my income isn't high enough.

[seen this before]

I agree. I was told I'm not entitled to a credit card (don't want one anyway) because my income isn't high enough.

 

you were fortunate nystagmite,however there are many cases where checks have not been carried out and there has been irresponsible lending, todays economic situation is all down to this.

 

all of a sudden the "borrower" "customer" becomes the "defaulting debtor".

[fernack]

Hi Katee

 

I will see you at work and try to help you with this.

 

Katee is not trying to shirk her debt. I know her personally and she has just secured permanent employment with the NHS>

 

It was I that directed her to this site as I thought she would get help with the fact that her benefits were appropriated to repay an overdraft. I thought that benefits couldn't be touched? But I could be wrong ...

 

All this happened a few years ago so am not sure where she would stand in a regards to a claim or what template letter to send ?

 

I am going to draft her a complaint to the FSO when I return from holiday and she has fished out all the paperwork and hope to get some real help here rather than any sarcastic, unhelpful comments. Thanks for all sensible replies so far.

 

Keep your chin up Katee and look at the good advice on here.

[MARTIN3030]

Fernack,thanks for directing Katee to the CAG.

When you say it was a long time ago -how long exactly ?

We need some questions answered if poss the ones I posted.

The FOS will need all supporting docs if they are to investigate,which is why its very important to have a good paper trail.

They would also need to see that Katee brought this to the banks attention at the time and they did nothing or else refused to answer her complaints positively.

It may be an idea once she has everything to do a preliminary letter to the bank asking them for an explanation,and if they do not agree that their actions were not in keeping with their obligations.

This would also serve as part of what the FOS would want to be looking at.

Some of the things Kayee complains of would have been covered under the old BBA banking and lending codes of practice.

Insofar as time limits,the FSA handbook says that in some situations they can look into complaints that arise from issues up to 3 years after the complainant becomes aware they have a case to complain about-if the original issues fall outside of 6 years.

[fernack]

I have sent Katee a message and told her to check back here and to do a SAR. I dont know the full details as we got to discussing it at work yesterday and am now on holiday for 2 weeks. Katee is also at work today. She is new to the site and probably wont know how to navigate properly around the site. I will help her with letters etc as much as I can when I get back. I think she needs direct guidance as to what letters to send to whom at the moment. Thank you for input.

[MARTIN3030]

Ok first we need to know which bank it was.

[BRIGADIER2JCS]

It's in the 1st. post NatWest.

[MARTIN3030]

Ah thanks-missed it.

[Nystagmite]

I think the following may be of use - http://www.consumeractiongroup.co.uk/forum/showthread.php?125278-Your-bank-is-taking-your-benefits-in-charges it's the sticky about banks, charges and benefits.