Lancashirelass and friend v A & L

[lancashirelass]

Help someone PLEASE,

I am helping my friend to claim £4185 from A & L and need some advice on thier tactics, I am claiming against Y B but A & L have some very different ways of going about this! Sent off initial letter on 15th April 07 LBA sent 23rd April. Today received this letter from them:-

 

Dear xxxxxx

Thank you for your enquirey requesting that we refund the fees and interest that you have paid on your current account. These fees form part of the terms and conditions of your account and were generated because payments were presented for payment, for example, cheques or direct debits, when there were insufficient funds available.

 

As you maybe aware the OFT is currently reviewing the issue of current account charges. It is our understanding that they have suggested that there maybe some similarities between the default charges on credit cards and similar charges applied to current accounts, however, it recognises that the application of the general principles set out in 2006 to the banking industry is not straight forward and that a more detailed examination is needed in relation to bank charges.

 

Default charges may apply to current accounts when items are presented for paymentwhilst the account is in excess of its overdraft limit and are returned unpaid (bounced) and a fee is charged. We do not believe that the term applies to other types of fee.

 

We believe that all our charges have been applied in accordance with the terms and conditions of your account, of which you have been given a copy. However, having reviewed the particular circumstances of your case and taking into account the ongoing OFT review,in order to resolve this matter we are prepared to refund the sum of £1739 in full and final settlement.

 

This reflects the difference between the amount of charges for unpaid items actually applied to your account and the ammount of charges that would have been applied to your account if the charge had been £12 ( being the ammount that the OFT indicated was not unreasonable in relation to credit card default charges). Please sign the eclosed copy letter to confirm your acceptance of this letter and return it to me in the envelope provided by 20th June 2007. On reciept, I will apply the agreed refund immediatly.

 

You may have seen media reports that some banks have considered closing certain customers accounts where the customer has complained about bank charges. We would like to reasure you that this is not our policy and if you do accept our offer of settlement,we will continue operate your account. We will do so on the bwsis that you accept the terms and conditions of your account previously notified to you, and that charges wil be applied in accordance with our current charging policy.

We would stress that as the OFT has not concluded its review, the offer of settlement contained in this letter is made on entirely ex gratia basis and without any acceptance by us that £12 is an appropriate charge for returning an item unpaid.

 

Finally where additional funds are required, it is always best to arrange overdraft facilities in advance, to avoid incurring fees on your account.

 

Y A W N............................

 

They are offering my friend £1739 when her claim amounts to £4185

This is before interest is applied when she claims in court.

[Michael Browne]

I think it's fairly clear what your next step is:

Getting MCOL Right

[lancashirelass]

I agree but my friend is very nervous and she has asked me to see what you think about her idea of writing and asking them to up thier offer to at least 50% of the claim (£4185) and if so how should she wird this letter, you help would be greatly appreciated.

[Michael Browne]

she has asked me to see what you think about her idea

I think it's a bad idea.

 

However if she insists,

 

Date

Dear Whoever

Ref: Your Offer of Settlement

 

Account: xxxxxxxx

Sort Code xx-xx-xx

 

Thank you for your letter dated xx/xx/xx and settlement offer of £1739

 

Unfortunately, this falls far short of my claim for £4185 and, therefore, I decline your offer.

 

However, I would be willing to settle this claim for £2500 and I am prepared to allow you 7 days to agree to this offer before commencing legal action

 

Failing any communication from you, I will be issuing a claim in the County Court on xx/xx/xx

 

 

Don't hold your breath, I think you are merely delaying the inevitable court claim

[lancashirelass]

thanks so much for your advice I do agree with what you say, I had to take Yorkshire Bank to court to get my any where with them but my friend is scared and skint! she is going to sleep on it before she makes a decision, I know though what I would do! but I don't know what people like us would do without the help of this site....