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For the last 6 months there have been numerous reports from Lloyds bank charges claimants in financial difficulty, stating they have received a letter from Lloyds bank accepting that they are in hardship, but sticking to their guns in not offering any refund of charges.
Instead, if the circumstances warrant action, they have offered to change customers to a basic account, put a hold on future charges temporarily, renegotiate repayment level on overdrafts and hold off collections - this of course is all that is required of them under the banking code and thus the waiver.
If cases have since been forwarded on to the financial ombudsman, they have tended to agree with Lloyds.
However, Lloyds appear now to have taken this attitude across the board, whereas they in the past repaid charges in the most severe (repossession looming) cases.
Lloyds are not breaching the waiver in doing this, but they don't appear to be following specific guidance issued by the FSA in March of this year.
If you receive a letter accepting you are in hardship but refusing to repay charges, you should consider the other 'assistance' offered to help you, but also respond to them quoting this additional guidance.
You will need to show that charges have added to or been incurred during the period of hardship and have exacerbated matters.
Dated 19th March 2009 - Financial Service Authority letter to firms.
The full letter is posted in the FSA forum on this site and attached below.
Instead, if the circumstances warrant action, they have offered to change customers to a basic account, put a hold on future charges temporarily, renegotiate repayment level on overdrafts and hold off collections - this of course is all that is required of them under the banking code and thus the waiver.
If cases have since been forwarded on to the financial ombudsman, they have tended to agree with Lloyds.
However, Lloyds appear now to have taken this attitude across the board, whereas they in the past repaid charges in the most severe (repossession looming) cases.
Lloyds are not breaching the waiver in doing this, but they don't appear to be following specific guidance issued by the FSA in March of this year.
If you receive a letter accepting you are in hardship but refusing to repay charges, you should consider the other 'assistance' offered to help you, but also respond to them quoting this additional guidance.
You will need to show that charges have added to or been incurred during the period of hardship and have exacerbated matters.
Dated 19th March 2009 - Financial Service Authority letter to firms.
v. Firms to provide a range of measures to support customers, and to treat them positively and sympathetically. These might include; help and guidance about
dealing with FD and avoiding charges; suspending collections and recoveries activity; suspending the accrual of further interest and charges; and a consideration of a refund of charges, in particular where the charges may have added to the FD during, or immediately before, the period of FD. The rationale for why a particular level of refund has been given should be documented and clearly explained to the complainant.
dealing with FD and avoiding charges; suspending collections and recoveries activity; suspending the accrual of further interest and charges; and a consideration of a refund of charges, in particular where the charges may have added to the FD during, or immediately before, the period of FD. The rationale for why a particular level of refund has been given should be documented and clearly explained to the complainant.
The full letter is posted in the FSA forum on this site and attached below.
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