The FSA Waiver on Bank Charges: Renewal Discussion

[natweststaffmember]

From everyone's varied perspective as claimant, campaigner and observer, so to speak, what changes would you like to see when the FSA Waiver comes up for renewal in January 2009?
This could be a short lived discussion but we might as well start it.
http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf
The above link is the waiver.

[Amethyst]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

Standardisation for treatment of claimants in hardship across the banks, and a much much better definition of what consitutes hardship.

tighter restriction of defaulting and debt collection on disputed accounts. they HAVE to stop banks taking vulnerable people to court when they have a claim in the system.

[natweststaffmember]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

I totally agree with that last point and have seen it time and time again that a bank takes someone to court or sends the debt to a DCA even though they have a claim in the system.
I think I would say that the way in which it is dealt with needs to be clarified within the waiver, ie that an Income and Expenditure sheet should be completed.
The definition of hardship and certainly the way that hardship is dealt with should be standardised.

[righty]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

Standardisation for treatment of claimants in hardship across the banks, and a much much better definition of what consitutes hardship.

tighter restriction of defaulting and debt collection on disputed accounts. they HAVE to stop banks taking vulnerable people to court when they have a claim in the system.

The COURTS should be stopping the banks from taking vulnerable people to court. This could easily be achieved if the courts asked the lenders if their claim includes charges & if so the case should be stayed rather than the defendant having to be sophisticated enough about the current waiver to know they can request a stay

[Ladidi]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

A freeze on the collection of these so called charges until the outcome. After all the banks are not willing to pay out until clarification so why should they be allowed to continue to collect when nothing has been resolved.

[EXC]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

The change I would most like to see is no waiver at all.

Ever the optimist, on the renewal of the waiver in July the FSA stated that ''The waiver will be for six months, when we expect to have a decision from the Court of Appeal." and by all accounts that criteria should be satisfied by the end of January.

http://www.fsa.gov.uk/pages/Library/...2008/073.shtml

[Amethyst]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

WAIVER EXTENDED - January 2009 - up to a further 6 months - Legal Beagles

Waiver Extended to July 09 - no changes

[natweststaffmember]

Re: The FSA Waiver on Bank Charges: Renewal time on January 26th 2009

Ok, people are starting to look at the HoL case and thinking well, at least that damn waiver is going. It isn't. I think we have a further one coming up.

I hope you don't mind a few things that I will post up that I would like the FSA to work on.

"(14)
the firm must not take into account the period between 27 July 2007 and the date of termination of this direction (the “stay period”) for the purposes of relying on any limitation period (or periods) or time limits within which complainants must:
(a)
make relevant charges complaints;
(b)
refer relevant charges complaints to the Ombudsman; or
(c)
bring claims before the court;
and the firm must not otherwise limit any redress that may be due to the customer, when complying with DISP or otherwise, because of the stay period;"

The FSA need to clearly define the fact that any limitations act should be about data on bank charges. Banks' are claiming that data should only go back 6 years on statement info.

"(18)
the firm must not close accounts or threaten closure of accounts of customers when it might reasonably appear that this is for the purpose (or with the intent) of penalising customers that have complained about unauthorised overdraft charges for having complained, or deterring future complaints from these customers or others. For the avoidance of doubt, the firm may close accounts or threaten to close accounts where there is good justification for doing so based on the circumstances of the particular case;"

I think this clause should specifically state that accounts where there is a bank charges case already in existence that no collection activity should be commmenced until the conclusion of this order where a bank charges case is already in operation. The might help with the OFT test case issues.

"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)."

I hope the FSA remove the £500 in charges over 12 months. You want to know why the FOS is clogged up. It's because you can have 2 charges a month and this applies to you with 2 months off. I think they need to stipulate £500 in charges over a 3/4 or 5 month period which I think will show real hardship.
Furthermore, I think it should be clearly mention the words "priority debt arrears" and define them within it.

What would you like to see change in the FSA Waiver when it is renewed?

http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf

Link is above.

[natweststaffmember]

Re: The FSA Waiver on Bank Charges: Renewal Discussion

Anyone else got any thoughts?

I gotta say the difficulty with this is that it isn't a juicy press story. I spend most of my free time on bank charges forums and I see the limitations of the waiver and yet in reality to put this in the press requires someone to lose their home because too many people are claiming hardship because of the rules or someone being harrassed and killing themselves when the bank shouldn't be taking action based on FSA rules.
The FSA Waiver WILL BE RENEWED, I just hope that people and press give enough of a toss to do something now and not complain after the fact when it continues it failure to deal with REAL HARDSHIP.

There is a current trend now, where the bank are becoming part of the priority debtors even though they have no right to do so and the FOS are agreeing with this viewpoint. It's scandalous and no one seems to give a toss.

Ok. rant over and thoughts on it.

[ROBSTER]

Re: The FSA Waiver on Bank Charges: Renewal Discussion

Nattie,

I think Amethyst is on the case but since you asked my main concern is the destruction of any data which might otherwise be crucial to a court claim (i.e. statements before July 2001). At this stage the FSA have an obligation to ensure that no Shred & Burn tactics are employed by the banks to give themselves an obvious advantage & damage limitation.

I believe there could be some press interest in this (and we might be able help the banks “avoid a scandal!”)