Bank Refunds Goes Into Extra Time

http://www.theherald.co.uk:80/news/n...extra_time.php

[enaid]

Re: Bank Refunds Goes Into Extra Time

Bank refunds battle goes into extra time
Comment | Read Comments (4)

NICKY BURRIDGE Banks will not have to consider giving refunds to customers who complain about unauthorised overdraft charges for at least another six months, the City watchdog said yesterday.
The Financial Services Authority (FSA) has granted a new waiver enabling banks to ignore the complaints until at least January 26 next year.
The regulator put a waiver in place in July last year following an announcement from the Office of Fair Trading (OFT) and eight major banks that they would seek a High Court ruling on whether the charges were fair.
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The OFT won the first leg of process earlier this year, when the court ruled that the charges came under its jurisdiction, but the banks are appealing against the decision.
Yesterday's move is bad news for consumers who were hoping to win refunds for the charges.
The FSA's previous waiver was due to run out on Saturday, but, with no end to the legal process in sight, people face a long wait before they can challenge the banks, which will be able to continue levying the charges in the meantime.
But the FSA has issued new guidance to banks on identifying and dealing with people who are in financial difficulties, including referring them to a specialist team for advice.
Banks will also still consider complaints lodged by people who are suffering from financial hardship.
It is also requiring firms to keep records on the complaints they receive, and the usual time limitations in which consumers have to lodge a complaint are also being waived.
The regulator is enhancing its monitoring of firms' treatment of consumers while the waiver is in place. The new waiver is being offered to all banks and building societies that signed up to the previous one, accounting for around 98% of the current account market.
Dan Waters, director of retail policy at the FSA, said: "The FSA continues to work closely with the OFT and banks in reaching a resolution on the fairness of unauthorised overdraft charges.
"The FSA has reviewed the prevailing circumstances and has decided to offer firms a new waiver. The waiver will be for six months, when we expect to have a decision from the Court of Appeal."
The OFT released a report last week in which it said banks made £2.6bn a year from charges to people who have insufficient funds in their account.
It added that there appeared to be "substantial cross-subsidisation" between consumers who incurred charges and those who did not, with "vulnerable, low-income" consumers often subsidising those on higher incomes.
The fees can be as much as £35 for a single bounced payment, although campaigners claim the cost to the banks could be as little as £2.50.
Annual results for the major high-street banks show they have so far paid out more than £559m in refunds to customers who complained about unauthorised overdraft charges.
But the actual total will be higher as both Abbey and Nationwide Building Society declined to disclose how much they had refunded.

[breeze1996]

Re: Bank Refunds Goes Into Extra Time

I know we expected it, but it does seem to be that everytime something happens, it's just a case of we are told to wait once more.

Still I really do think we will win, and it's just a case of the banks doing anything to delay having to give back money.

[shooter]

Re: Bank Refunds Goes Into Extra Time

At leaset one bank has paid out recently

have a look at this

http://forums.moneysavingexpert.com/...html?t=1052033

[Amethyst]

Re: Bank Refunds Goes Into Extra Time

Thats great shooter - well done for finding it and getting all the info

Good luck on yours xx


This bits good I think

No. They said that there offer was out of goodwill and without liability. They also said that my complaint would be kept on file and reopened after the court case to ensure that I'm not disadvantaged by the payout. No other T&Cs - money is going to ODs and CC arrears. I'm happy with that.

Wonder fi he got that in writing?

[Amethyst]

Re: Bank Refunds Goes Into Extra Time

Also Shooter - in your sig over there you have

GE capital -2 accounts- letter asking for refund stage (Waiting for out come of the above to carry on with this one )
LTSB card- letter asking for refund stage ( waiting for the outcome of the above to carry on with this one )

Can i be a nosey bonk and ask why you are waiting for your Lloyds claim to complete before dealing with these two ?

[Jester]

Re: Bank Refunds Goes Into Extra Time

I have to admit that I had a wry smile on my face yesterday when LTSB posted their 70% dip in profits. The first thought I had was 'thats what you get for shafting your customers' !!

I just hope the others suffer similarly when they post their results and then when the OFT win the test case appeal as well, then the same banks will suffer anohter huge dent from their trough of ill-gotten gains.

Breaks my heart to see these greedy pigs bleeding so badly

Problem is, the ones at the top will continue shoving their snouts in and they will simply get rid of the underlings for 'under-achieving', conveniently ignoring the fact that it is the top people that is causing their problems.

[shooter]

Re: Bank Refunds Goes Into Extra Time

Hi ame
In answer to your question
1. cause I don't want to start them and get to the court stage and find I cannot afford the court fees (although I now think I may be exempt due to child tax credit and housing CTax benefit).
2. not sure I could cope with more than 3 cases at once.

having said that I am looking at them at the moment, I don't owe anything to any of them as I inhiereted some money last year and paid off all my debts. I am now back to being in real finantial hardship and probably shoild start on these as I could really do with the money.

shooterxx

[Jester]

Re: Bank Refunds Goes Into Extra Time

Shooter - If you are on benefits and struggling then go the route of the FOS. That's what I am doing. The FOS have to look at cases of financial hardship.

There are threads here that highlight the Financial Hardship rules under the new waiver. If you can satisfy at least one of those rules then you could be considered in Financial Hardship and get a payout anyway. Some banks are already paying out on Financial Hardship grounds (see Ladidi's thread - in the Shabbey (Abbey National) forum)

[Amethyst]

Re: Bank Refunds Goes Into Extra Time

Yep you should qualify on exemption court fee wise...have a read -->> Legal Beagles

Shooters trying the hardship route with lloyds at the mo for the bank accounts. Other than the court fees theres no reason you cant get at least one of the C/card claims going again.

[shooter]

Re: Bank Refunds Goes Into Extra Time

I'm actually going for both LLoyds and Alliance and Leicester on the grounds of hardship, the letters are posted so now all I have to do is wait to see what reponce they bring.

I have included my mobile no so hopefully they will call me to ask me how I'd like my money back. Well you can only hope can't you!

Good job I'm going away else I'd be like a cat on a hot tin roof!

I'm away from tommorrow lunch time so see you all when I get back and hopefully I'll have something good to come back to.

goodluck to all of you reclaimers while I'm away

Ame I've decided to take my laptop and all the statement from the sars with me so that I can work on spread sheets and letters while I'm away thanks for the gentle push I think it's all I needed really especially as it looks like I qualify for court fee exemption.
A big Thankyou


shooter