FSA Waiver: All claims can go back 6 years from 27th July 2007

[natweststaffmember]

The question of bank charges and how far the FSA Waiver goes back is one that has intrigued me so I asked the FOS the question plus another one on closed bank accounts. Here is my questions and their response:

"I regularly help on debt forums and there is a question that regularly comes up with regards to bank charges reclaiming and closed accounts. Does the bank have to deal with complaints where the customer is claiming financial hardship and have previously closed an account, that incurred charges, even if they may have a main bank account elsewhere?

Furthermore, with regards to the FOS Waiver and the stay period, can a claimant go back 6 years from the date of the waiver(the 'stay period' or 27th July 2007) or 6 years from the date of their acknowledgement from the banking institution?

Nattie "

Their response:

Dear Mr Nattie

Thank you for your email.

Firstly, you may find the following link to our website of some use concerning bank charges - FAQs complaints about bank charges .

I may also want to refer to the FSA's guidance concerning their waver, this can be found at -

http://www.moneymadeclear.fsa.gov.uk/news/product/unauthorised_overdraft_charges_test_case.html

If a bank receives a complaint concerning financial hardship, then the bank should deal with the complaint under their usual complaint handling rules, and issue a final response within 8 weeks. This is retrospective and does not matter whether the account has been closed or not and if the customer now banks elsewhere.

Concerning your last question, I will direct you to a paragraph on the above link to the FSA website concerning "time-barring"

"We have protected your rights by making it a condition of the waiver that complaints will not be time-barred. In effect, the clock stopped on 27 July 2007. For example, if you are applying to reclaim charges for the last six years and the waiver was in place for two years, those two years would not count."

I hope this helps, however if you have any further queries, please not hesitate to contact us again

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

This depends of course whether the statute of limitations applies but it is good to have confirmation the hold is for everyone, not just claimants who already had claims in system.

So EVERYONE can go back to 27 July 2001.

[ROBSTER]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

There in lies the problem. And this worries me.

Have banks been told by the ICO NOT to destroy copy statements (as they can under the Data protection Act) for this day six years ago at midnight tonight. I suspect not!

So although "time has stood still" the material evidence, crucial to the claim is not likely to be avaliable.

Banks will claim to be "ensuring compliance of their interpretation of the Data Protection act" in only supplying six years of history.

If you make a DSAR today you should get information back to July 2001 but do you? NO

What chance will the procrastionator who has does not apply until after the stay is lifted?

e.g. lets assume the waiver is lifted on 1 june 2009 if I apply for copy statements the next day hw far back will they go?

28 July 2001 (ie 1 day less than if I had applied today) or 2 june 2003 because "the bank is "ensuring compliance of the Data Protection act in only supplying six years of history".

My on going concern has been how much Banks are "saving" by stretching out the OFT Test Case they are cleverly eliminating potential claims (limiting their liabillity) against the people who do not "stake their Claim" now or before the waiver is lifted.

Somebody tell me I'm Wrong!!!!

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

I have asked the ICO the question, whether or not we will get a decent reply who knows.

This was something we discussed when the judgment came out in the test case. Have you spoken to the ICO about the situation and whats their position, I am sure they have foreseen similar ?

If you make a DSAR today you should get information back to July 2001 but do you? NO

you should actually get information back as far as they have records. but yes I know what you mean.

[natweststaffmember]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

That's not actually correct anyway on simple statement data or even online. NatWest online banking goes back 7 years.

[TANZARELLI]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

I actually think s32 would be doable in bank claims now as I have said before so I for one am not worrying to much about the 6 year limitation period.

[ROBSTER]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

I actually think s32 would be doable in bank claims now as I have said before so I for one am not worrying to much about the 6 year limitation period.

I too agree on the s32, I firmly believe that The clock started ticking in February 2006 when”a reasonable person" first realised that these fees may well equal more than the actual cost of administration so there are six years to make the claim from then (i.e. until Feb. 2012) and you should be able to go back as far as records exist up until that time.

(But in January 2012 how far back will records exist?)

My problem is rooted in "the other" six year rule of the Data Protection act (i.e. Companies must keep six years of records) which I fear has been overlooked.

So unless you happen to have all of your statements you are likely to be at the mercy of the bank's compliance department. You do not need to be a rocket scientist to realise that at some point it will save banks £Bns not to supply data to the stragglers (who are in the majority at the moment by about 4:1) who have not yet staked their claim.

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

My problem is rooted in "the other" six year rule of the Data Protection act (i.e. Companies must keep six years of records) which I fear has been overlooked.


Not entirely correct afaik.

Q: How long should organisations keep data for? The Data Protection Act says that information should be kept for no longer than is necessary. The Act does not specify what a ‘necessary’ period should be for particular information. Each case would be considered on its own merits. If an organisation is obliged to retain data for a given length of time under any other laws, this should be taken into consideration.


For example, financial institutes may have to keep some information for up to six years in accordance with the Financial Services Authority regulations. A sole trader, however, may not need to keep information for longer than a month.

[ROBSTER]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

My problem is rooted in "the other" six year rule of the Data Protection act (i.e. Companies must keep six years of records) which I fear has been overlooked.


Not entirely correct afaik.

Q: How long should organisations keep data for? The Data Protection Act says that information should be kept for no longer than is necessary. The Act does not specify what a ‘necessary’ period should be for particular information. Each case would be considered on its own merits. If an organisation is obliged to retain data for a given length of time under any other laws, this should be taken into consideration.


For example, financial institutes may have to keep some information for up to six years in accordance with the Financial Services Authority regulations. A sole trader, however, may not need to keep information for longer than a month.

That is so, however the DSAR states six years! so it would follow that any institution who holds data which is likely to be covered under a DSAR needs to keep data for six years. No less...NO MORE!!

[natweststaffmember]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

That is so, however the DSAR states six years! so it would follow that any institution who holds data which is likely to be covered under a DSAR needs to keep data for six years. No less...NO MORE!!

We already know that this is not the case. Robster, call your bank and ask them how far back you can get your statements, mention a financial dispute with a company(not bank charges) and see what they say. I guarantee they won't say 6 years.

[ROBSTER]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

That's not actually correct anyway on simple statement data or even online. NatWest online banking goes back 7 years.

To the unclaimed (as yet) 7 years back is already starting to fall short of the six years (not including the waiver) what happens if the banks manage to get their appeal to HOL? That could drag things on for anothr 18 months, September 2010 (god forbid) but even the generous 7 years (assuming that's still availiable!) would take you back to September 2003 leaving 2 years worth of claim unaccounted for.

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

Which DSAR says this ? I know some of the template letters do tend to stick to asking for information within the SoL but i don';t recall anything from the ICO or in the DPA about a 6 year limit ?

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

To the unclaimed (as yet) 7 years back is already starting to fall short of the six years (not including the waiver) what happens if the banks manage to get their appeal to HOL? That could drag things on for anothr 18 months, September 2010 (god forbid) but even the generous 7 years (assuming that's still availiable!) would take you back to September 2003 leaving 2 years worth of claim unaccounted for.

Yep and I suspect companies are destroying old data as we speak to avoid paying out.

Wonder if we can find out from those data storage companies (RISK ? was it holds Abbeys off site) if infos being destroyed or not.

[natweststaffmember]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

To the unclaimed (as yet) 7 years back is already starting to fall short of the six years (not including the waiver) what happens if the banks manage to get their appeal to HOL? That could drag things on for anothr 18 months, September 2010 (god forbid) but even the generous 7 years (assuming that's still availiable!) would take you back to September 2003 leaving 2 years worth of claim unaccounted for.

Plus I would suggest it would be a breach of the FSA Waiver.

[Amethyst]

Re: FSA Waiver: All claims can go back 6 years from 27th July 2007

Ask the FSA/OFT what they have in place to combat this problem, if indeed it becomes one. Question is in with the ICO already as well as for historical data on complaints regarding period supplied.