Barclays turn down financial hardship application

[gribzig]

I meet all the criteria for financial hardship (checked the Moneysavingexpert advice on this)

and have been absolutely crippled by Barclays charging me £3 a day or nearly £100 a month

on my account since they changed the rules.

 

 

I have also suffered from charges piling up on my account to form the overdraft that is the basis for those £3 a day charges.

 

I sent them an SAR,

got my documents and duly sent off an email to Barclays Head Office

following personalized templates from here asking them to stop all further charges

and refund me those for the past four and a half years I have been in hardship.

 

They turned me down flat, stating:

 

Under the Lending Code (section 9) and Banking Conduct of Business Sourcebook (Section 5.1.4),

Barclays does have a duty to treat customers in financial difficulties positively and sympathetically.

 

 

Any such obligations on Barclays where financial hardship has been shown are guided by these codes and rules.

 

 

However, I would advise that neither of these, nor the Banking Code which proceeded them require Barclays to refund charges

or suspend the application of them when someone is suffering from financial difficulties.

 

 

Having reviewed your account I can see that all charges have been applied correctly in accordance

with the terms and conditions of your account therefore I would be unable to offer a refund.

 

However, I have arranged for our Financial Assistance team to review your account

and they are keen to have a full discussion with you to ascertain you current position

including your current income and expenditure.

 

 

The Financial Assistance would then be in a better position to look at more permanent solutions to your current position

and they have several potential solutions that may assist you ;

 

 

if agreeable I can arrange for a member of our Financial Assistance team to call you at a time which is convenient to you.

 

I'm sure the 'Financial Assistance team' are no such thing...

 

Where do I go from here?

[BankFodder]

I suggest that you write to them and asked them for a full explanation of the criteria they considered, a copy of their considerations, a copy of the decision and the reasons for the decision. Also asking for a copy of the policy that they have been following.

 

It won't make any difference that you may as well have a laugh. At the very least even have a laughter the letter you get in return telling you that this is all confidential.

 

I suggest that you begin a complaint to the ombudsman service. It will take a long time and it may well produce nothing but at least it will rattle some cages

[BankFodder]

By the way, don't do any of this on the telephone. And if you are tempted to call them then at least begin by reading our customer services guide and pay close attention

[gribzig]

Thank you - I'll do both in writing and post back my results

[dx100uk]

are you on benefits?

 

 

dx

[gribzig]

I receive Working and Child tax credits as well as Council Tax Benefit - those make up my income apart from very small, sporadic amounts from self-employment. I am also a single parent (my situation became very had when my partner left) and struggling to meet all the bills as we now only have my income and no other means of support.

[gribzig]

I'd also add that for two years during the hardship period for which I am claiming I was on JSA.

[dx100uk]

are the benefit going into this bank account and is it obv [statement listing] where they are coming from?

 

if so sounds like a perfect BCOBS complaint too.

 

dx

[gribzig]

It certainly isn't a joke to me and I have little faith in Barclays providing real 'financial assistance.' I did some digging around on the site and found a fairly old thread that related to a similar case including this:

 

The banks decision on you not being in sufficient financial hardship is not the final decision. The FOS or a court can overrule them. If the bank have actually given you a response you can go straight to the FOS who will look at your claim.

 

Have the bank asked you for further information or have they already made their decision?

 

If the FOS agree you have hardship status they will make a recomendation to the bank on whether they should refund the charges.

 

The hardship criteria the Financial Ombudsman Service would use is the Financial Services Authority waiver guidance. These are the definitions of financial hardship as suggested by the FSA in the updated Waiver.

 

1. The firm will be sympathetic and positive when considering any financial difficulties claimed by the complainant. Firms will not subject a complainant to harassment or undue pressure when discussing their problems.

 

2. In making an assessment of financial difficulty the firm will take into account:

 

a. evidence of changes in lifestyle, including loss of employment; disability; serious illness; imprisonment; relationship breakdown; death of a partner; starting a lower paid job; parental/carer leave; and starting full-time education;

 

b. evidence of the following events:

 

i. items repeatedly being returned unpaid due to lack of available funds;

 

ii. failing to make loan repayments or other commitments;

 

iii. discontinuation of regular credits;

 

iv. notification of some form of insolvency or court proceedings;

 

v. regular requests for increased borrowing or repeated rescheduling of debts;

 

vi. making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and

 

vii. repeatedly exceeding a credit card or overdraft limit without agreement (and, in this regard, where a complainant has incurred over £500 in unauthorised overdraft charges in the previous 12 months, that is to be treated as indicative of financial difficulty).

 

3. If during the handling of the complaint the firm becomes aware (including by notification from the complainant) that the complainant may be in, or heading towards financial difficulties, the firm will contact the complainant to outline their approach to financial difficulty cases and to encourage the customer to contact the firm if the customer is worried about their position. The firm will also provide signposts to sources of free, independent money advice.

 

4. The firm will make available to complainants straightforward information in plain English on the firm’s procedures and systems for dealing with customers in financial difficulty.

 

5. If it becomes clear to the firm that the complainant needs specialist assistance, the complainant will be referred promptly to a specialist team that deals with customers in financial difficulties, if one exists. The firm will give a phone number on all communications that will put the customer in contact with a named person or a team dedicated to dealing with cases of financial difficulty.

 

6. Where the firm does not have sufficient evidence to assess whether or not the complainant is in fact in financial difficulty, the firm will seek such further relevant information as is reasonably required to make that assessment. In the event that the firm reasonably requires relevant information to be provided by the complainant and the complainant does not provide the requested information within a reasonable period of time, the firm shall not be obliged to treat such a complainant as being in financial difficulty.

 

 

That thread is here:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?190665-Financial-Hardship-but-Barclays-say-NO-!-**WON-HARDSHIP-REFUND**

 

Barclays have not stated this is their final response but I believe I can take it forward. I just wondered if there was any more up to date advice as the above was from 2009?

[gribzig]

god who plugged him in.......

 

 

are the benefit going into this bank account and is it obv [statement listing] where they are coming from?

 

 

if so sounds like a perfect BCOBS complaint too.

 

 

dx

 

Thanks dx - yes, the benefits are doing directly into this account. It's my only account so they can see all my income and outgoings and the impact the charges are having on me (priority bill payments bounced etc)

[dx100uk]

BCOBS then.

 

 

 

http://www.consumeractiongroup.co.uk...se-**WON-bcobs-**

http://www.consumeractiongroup.co.uk...ON-UNDER-BCOBS**

http://www.consumeractiongroup.co.uk...nk-using-BCOBS

 

http://www.consumeractiongroup.co.uk...ED-UNDER-BCOBS**

[gribzig]

Thank you - working through those links now.

[gribzig]

I wasn't suggesting that you thought it was a joke - rather that BankFodder was a treating this as a joke.

 

What your missing is that the Financial Assistance team may be able to refund your some of your charges but obviously they need to better understand your situation first of all. In addition to that they give you some pointers to help prevent you from suffering from financial difficulties in the future.

 

If you turn down their help and offers of support then any future complaints regarding BCOBS won't result in your favour.

 

Thank you but I have already made my situation clear to Barclays and told them why I was in financial hardship. I don't think any pointers on preventing family breakdown and the subsequent fall-out are going to help.

 

I wrote to Barclays when this first happened four years ago explaining it all. They ignored that letter. I wrote to their CEO with the same, extensive explanation. That, too, was ignored. Barclays were all over me when I was earning a decent income but the moment things became tough they turned nasty. I have no reason to believe that they will provide any form of 'support' now.

[Klandestine]

Thank you but I have already made my situation clear to Barclays and told them why I was in financial hardship.

 

Well it needs to be directed to the appropriate team. Whoever responded to your most recent email has correctly and kindly said they would

schedule a callback for you.

 

I don't think any pointers on preventing family breakdown and the subsequent fall-out are going to help.

 

Your mis-conceptions are working to your detriment. Quite obviously that is not the type of advice they would be giving - it would be about money management/re-structuring lending etc.

 

I wrote to Barclays when this first happened four years ago explaining it all. They ignored that letter. I wrote to their CEO with the same, extensive explanation. That, too, was ignored. Barclays were all over me when I was earning a decent income but the moment things became tough they turned nasty. I have no reason to believe that they will provide any form of 'support' now.

 

If you won't accept their help that's up to you, but I doubt you will get anywhere near the outcome you are seeking but following the "advice" from the site team.

[cfs_too]

Hi,

 

I'd say continue your formal complain in writing, turning it into a BCOBS complaint (as suggested by the more experienced members of CAG).

It is important to keep it all in writing, and to not be bullied into engaging in telephone call. As advised all over the forum it is much easier to provide a trail of evidence (including signed for signatures - in my experience barclays have 'not received more letters than recieved!) when your compliant is in writing.

 

 

Continue to complain, ensuring your letter include in red Formal BCOBS complaint. (It took me 5 formal complaint letters to LTBS to get over £2000 incorrectly charged interest refunded and default date changed. The key is to be concise, and don't give up, however I would advise don't let it get to 5 letters before you take this to the FOS!).

 

Good luck, and don't give up!

Me_too

[gribzig]

Hi,

 

I'd say continue your formal complain in writing, turning it into a BCOBS complaint (as suggested by the more experienced members of CAG).

It is important to keep it all in writing, and to not be bullied into engaging in telephone call. As advised all over the forum it is much easier to provide a trail of evidence (including signed for signatures - in my experience barclays have 'not received more letters than recieved!) when your compliant is in writing.

 

 

Continue to complain, ensuring your letter include in red Formal BCOBS complaint. (It took me 5 formal complaint letters to LTBS to get over £2000 incorrectly charged interest refunded and default date changed. The key is to be concise, and don't give up, however I would advise don't let it get to 5 letters before you take this to the FOS!).

 

Good luck, and don't give up!

Me_too

 

Thank you - that's very useful advice.

[BankFodder]

Klandestine, if you continue to make personal remarks against me, any of the team or against any other Cagger, I will place your account on moderation.

[cfs_too]

Barclays have not stated this is their final response but I believe I can take it forward. I just wondered if there was any more up to date advice as the above was from 2009?

 

Hi,

I've just seen the above comment, from an earlier thread of yours.

LTSB kept doing this, so I couldn't raise the complaint with the FOS. I'm sure they do it so that you don't think to raise a complaint with the FOS. So many people are unaware of the FOS complaints procedure and the banks know more people give up at this stage rather than continue with the complaint.

If you do follow this up, ask for them to confirm in writing a final response so you can take it to the FOS. It might also prompt them to take the complaint more seriously. (We can hope!).

Me_too

[BankFodder]

Thread cleaned up and back on track, I hope.

[slick132]

Hi Gribzig,

 

The Lending code DOES tell Barclays they must "be sympathetic and positive when considering a customer’s financial difficulties", at the start of Section 9 - http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

 

Paras. 224 - 229 suggest possible remedies although the bank is not obliged to refund charges.

 

You need to open a new basic bank a/c and get your benefits paid into it asap. It is mad that your benefits continue to pay the banks' charges and not benefit you, as they are intended.

 

Then you can leave Barclays to whinge about the charges. Let them justify the charges as they wish, but they won't be paid.

 

[Klandestine]

Hi,

I've just seen the above comment, from an earlier thread of yours.

LTSB kept doing this, so I couldn't raise the complaint with the FOS. I'm sure they do it so that you don't think to raise a complaint with the FOS. So many people are unaware of the FOS complaints procedure and the banks know more people give up at this stage rather than continue with the complaint.

If you do follow this up, ask for them to confirm in writing a final response so you can take it to the FOS. It might also prompt them to take the complaint more seriously. (We can hope!).

Me_too

 

The OP sent an email so I doubt that it was concerned inline with Barclays' complaints policy because that is not an the proper way of making a complaint.

 

Thread cleaned up and back on track, I hope.

 

From the quotes, the thread doesn't follow correctly now.

 

I also notice that you removed my first post in this thread where I pointed out that your advice to go the FOS was wrong because the OP needs to exhaust Barclays' complaints procedure first. Well now you can see that Me_Too's posts confirms that this is the case and I was correct.

 

The Lending code DOES tell Barclays they must "be sympathetic and positive when considering a customer’s financial difficulties", at the start of Section 9 - http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

 

Well Barclays have forwarded the OP onto their Financial Assistance team to do exactly that. But if the OP is refusing to talk to them what more can Barclays do?

[BankFodder]

If you take the trouble to follow the FOS link, you will see that the need to exhaust the bank's own procedures is the first thing we refer to. I really can't understand what you are banging on about - unless you are just out to make trouble tonight

[Klandestine]

If you take the trouble to follow the FOS link, you will see that the need to exhaust the bank's own procedures is the first thing we refer to. I really can't understand what you are banging on about - unless you are just out to make trouble tonight

 

Because in your first reply to this thread you told the OP to "begin a complaint to the Ombudsman service" even though they haven't had a final response from Barclays. So quite obviously you didn't know this before.

 

It's also quite obvious that you have only just added that info in the fos link about the final response and 8 week deadline. Google cache also confirms this to be the case.

[BankFodder]

You are quite wrong and I think that you are simply being a troll.

 

It is quite clear that to begin a complaint to the FOS then whatever procedures are in place to allow that to happen must be followed.

In exactly the same way that if I suggest that someone starts a small claim, it is taken for granted that this means that they embark upon the pre-action protocol before issuing the claim.

Just as if I suggest to someone that they eat a bonbon, it is taken for granted that they will take the wrapper off first.

 

I think that you are being deliberately disruptive of this thread.

Please stop

 

I have now merged your latest Klandestine account with your clone account CAGbnm. You have a history of trolling on this forum.

[Klandestine]

You are quite wrong and I think that you are simply being a troll.

 

It is quite clear that to begin a complaint to the FOS then whatever procedures are in place to allow that to happen must be followed.

In exactly the same way that if I suggest that someone starts a small claim, it is taken for granted that this means that they embark upon the pre-action protocol before issuing the claim.

Just as if I suggest to someone that they eat a bonbon, it is taken for granted that they will take the wrapper off first.

 

I think that you are being deliberately disruptive of this thread.

Please stop

 

I have now merged your latest Klandestine account with your clone account CAGbnm. You have a history of trolling on this forum.

 

You don't know your audience then. Many new posters here won't know the intricacies of the action needed before going to the FOS or issuing a county court claim. Explaining this to new posters is hardly trolling.

 

The negative opinion of yourself and CAG on MoneySavingExpert speaks for itself. I actually first came to CAG from MSE because I wanted to try and change that opinion by giving sound realistic advice. If you consider that trolling then I guess nobody can tell you otherwise because you're never wrong are you?