Hanson v Cahoot - 6QZ18789

[dinghy]

Have now received a written defence from Cahoot (Abbey).

 

Highlights include:

 

'The Claimant's contention that the said fees are uneforceable and/or are 'penalty charges' is denied. The fees reflect and are proortionate to the Defendant's administrative expenses incurred due to the Claimant's breach of contract and are a genuine pre-estimate of the damage suffered by the Defendant.'

 

they go on to say:

 

'Further or in the alternative, even if the said fees are not proportionate to the Defendant's administrative expenses incurred (which is denied), the Claimant remains liable to pay such fees as may be found to be proportionate and the Claimant is not entitled to claim repayment of the full amount of each charge made to the Account.'

 

then:

 

'No admissions are made as to the amounts claimed by the Claimant and the Claimant is put to strict proof of the same.'

 

 

They have offered a £475 'goodwill gesture' as a full and final settlement.

 

Any advice would be appreciated? Does anyone think they actually go to court, or should I call their bluff?

 

Seems no-one else has responded to this... So I'll give it a go...

 

With any of this it all depends on your own pov and how much risk you are willing to take... I personally believe that if pushed they will back down and give you everything that you are owed.

 

It could go one of several ways if it does make it to court.

 

a) The court could find that these are indeed penalty charges and therefore order them to be repaid in full.

 

b) The court agrees that they are payment for service but not proportionate. This would then lead to one of 2 outcomes

 

i) The bank would demonstrate what a proportionate fee is which would involve them demonstrating how the cost(/loss) is calculated and then would have to repay you the difference - highly unlikely this has been asked for on many occasions always leading to silence in response

 

ii) The bank would refuse to demonstrate proportionality and would therefore have to repay you in full.

 

c) The court may find the charges proportionate and you lose the case However I believe (as do most on here !) that this is so unlikely that the risk is almost negligible, especially in mind that the OFT has said that certainly anything over £12 is indefensible.

 

I think that this is a fairly standard scare tactic to try to mitigate their losses.

 

As ever with (I believe most if not) all advice given on this website, I am not qualified to give any advice and you are duly warned that any decisions are your own decisions made on your own account and no liability will be accepted for any advice followed ! Use your own judgment. Seek advice of a qualified insured professional if you have any doubts.

[dinghy]

Thanks Dinghy,

 

Wise words, and very valuable I feel.

 

You haven't clicked my scales though...

 

Best of luck with it... My claim was issued exactly a week ago...

 

p.s. Don't worry Dinghy, I really appreciate the advice, and wouldn't hold it against you or the Bank/Consumer Action Group if it all goes horribly wrong.

 

I'm sure you wouldn't but there's a helluva lot of litigious people round here @ the moment ! :D

 

It never hurts to be too careful !

[dinghy]

'You haven't clicked my scales though...' I have now, Dinghy!

Ta !

 

Looks like Cahoot don't fancy court afterall! Received this today:

 

'Mr Hanson,

 

In view of the amount that you are claiming and the legal costs that Abbey would incur in arranging defence and representation at the Court, the decision has been made that on this occasion, and in this case, your claim will be settled. However, this is on a "without prejudice" basis and is entirely without any admission of liability.

 

'I have therefore arranged for the sum of £833.59 (representing the claim of £753.59 and the Court fee of £80.00) to be paid into your account today in full and final settlement of your claim.

 

I should be grateful if you would inform the Court that this matter has now been resolved.'

 

 

Hope this gives the rest of you renewed hope that they won't go the full distance.

Good luck all!

 

Congrats... It was worth that very small gamble then !

[dinghy]

PS (just to save the mods posting this... ) make sure you complete their survey (http://www.consumeractiongroup.co.uk/survey.php) if you haven't done already...