Banks rapped over hardship claims

[Legal Beagles]

Banks are told by the Financial Ombudsman Service to stop fobbing off customers who ask for the return of overdraft charges because of hardship.

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[Budgie]

Re: Banks rapped over hardship claims


Banks rapped over hardship claims

Banks have been told to stop giving complainants the run around

Banks have been told by the Financial Ombudsman Service (FOS) to stop fobbing off customers who ask for the return of overdraft charges because of hardship.
Banks are supposed to consider such cases, even though all other refund claims are on hold pending the outcome of a long running legal test case.
Under Financial Services Authority (FSA) rules, banks are supposed to treat hardship claims sympathetically.
But the FOS says it has received many complaints that this is not happening.
'Feeling powerless'
"We see cases where it appears to us that the bank has not engaged properly with the consumer [or their representative] to gain a clear understanding of the consumer's financial position," said the Ombudsman in a recent letter to the banks.
"Where banks follow iterative or circular processes, consumers can be left feeling powerless to progress their complaints.
"This difficult situation is made worse by standard or generic statements [by any of the parties] which do not address the consumer's individual circumstances and may even be inaccurate," the FOS added.
In July, the campaign group Legal Beagles flushed out figures from the FSA, using the Freedom of Information Act, showing that while 178,000 people had made hardship claims, since July 2007, only 53,000 had been accepted.
About 32,000 had been rejected and put on hold because the bank said there was not sufficient evidence of hardship.
And 93,000 cases were still being assessed.
'Delaying tactics'
Martin Lewis of the campaign website MoneySavingExpert.com said the letter from the FOS was "great news".
The FSA should be investigating the fact banks are happy to play fast and loose with its rules


Martin Lewis, MoneySavingExpert.com

"We've seen a raft of complaints about banks replying with generic letters, playing run around, using delaying tactics and ignoring people in dire need," he said.
"The FSA should be investigating the fact banks are happy to play fast and loose with its rules, fine them for doing so and monitor how they operate, or stop the waiver altogether," he added.
Under the rules, financial hardship is defined as not having enough money to pay for reasonable day-to-day expenses and other usual outgoings.
If someone claims they are in financial difficulty this does not mean they can automatically expect their claim for the refund of past overdraft charges to be accepted.
But it must be dealt with using a "sympathetic and positive approach" said the FOS.
After that, it said, there could be various outcomes:
• a review of existing authorised credit facility limits to avoid recurrent charges
• suspension of interest or charges
• debt reduction
• refund of interest or charges
• or re-scheduling unauthorised current account debt to allow continued use of the bank account.
The FOS has also written to claims management companies, who submit many claims on behalf of their clients, asking them to co-operate by ensuring they give banks the necessary information to judge if their clients are in genuine financial hardship or not.
In July about 1,126,000 ordinary refund claims were on hold, either with the banks or the FOS itself.

[Budgie]

Re: Banks rapped over hardship claims

In July, the campaign group Legal Beagles flushed out figures from the FSA, using the Freedom of Information Act, showing that while 178,000 people had made hardship claims, since July 2007, only 53,000 had been accepted.
About 32,000 had been rejected and put on hold because the bank said there was not sufficient evidence of hardship.
And 93,000 cases were still being assessed.
'Delaying tactics'
Martin Lewis of the campaign website MoneySavingExpert.com said the letter from the FOS was "great news".


So we are "Group" and Money Saving Expert is merely a "website"

[ROBSTER]

Re: Banks rapped over hardship claims

Group...I like it.

Like The Rolling Stones!

Does that make me a groupee??

Have to work on "the next album"

LOL

[Amethyst]

Re: Banks rapped over hardship claims

The figures come of the back of this story back in July http://www.pressbox.co.uk/detailed/C...le_343538.html