Barclays financial hardship refund

[stellamanella]

Hi there,

Been reading the forums for a while but this is my first post. I was wondering if anyone has got anywhere with the finaincial hardship route with barclays bank overdraft and reserve charges? I've recently added all of my partners 6 years of charges and they've amounted to over £4000, were in financial hardship and he's getting charged for using the reserve and any bounced back payments and overdraft fees etc. I emailed the CEO last night claiming finiancial hardship and wanted the money back, they've phoned my partner this morning to tell him to contact barclays consumer finances and they'll try and cancel the reserve but he won't get any charges back as the courts deemed them legal.
Has anyone had a successful outcome with a refund to their charges recently and if you have any advice? I'm not sure if they are trying to fob him off with regards to refunding the charges (or some of) or if we should persue and go to the financial ombudsman route and see if he can get any charges back? He said if he does go the consumer finances it will affect his credit rating. He is currently £2000 overdrawn and cannot even begin to clear this as he's getting charged at least £22 per week for using the reserve, he's got no option other than to use the reserve as we've got no savings to get him back into his overdraft, were only just managing and are aware we need to do something fast before it gets further out of hand.
Any help or advice would be appreciated. Thank you

[leclerc]

Re: Barclays financial hardship refund

Hi there,

Been reading the forums for a while but this is my first post. I was wondering if anyone has got anywhere with the finaincial hardship route with barclays bank overdraft and reserve charges? I've recently added all of my partners 6 years of charges and they've amounted to over £4000, were in financial hardship and he's getting charged for using the reserve and any bounced back payments and overdraft fees etc. I emailed the CEO last night claiming finiancial hardship and wanted the money back, they've phoned my partner this morning to tell him to contact barclays consumer finances and they'll try and cancel the reserve but he won't get any charges back as the courts deemed them legal.
Has anyone had a successful outcome with a refund to their charges recently and if you have any advice? I'm not sure if they are trying to fob him off with regards to refunding the charges (or some of) or if we should persue and go to the financial ombudsman route and see if he can get any charges back? He said if he does go the consumer finances it will affect his credit rating. He is currently £2000 overdrawn and cannot even begin to clear this as he's getting charged at least £22 per week for using the reserve, he's got no option other than to use the reserve as we've got no savings to get him back into his overdraft, were only just managing and are aware we need to do something fast before it gets further out of hand.
Any help or advice would be appreciated. Thank you

Can I ask how you are in financial hardship?
Are priority debts mounting, ie rent/mortgage, gas/electricity?
What was the cause of his financial hardship? Did he lose his job, have reduced overtime, etc,etc,?

With financial hardship refunding charges is not the only way that the bank can comply with dealing with customers, the job you have is to define when the hardship started, what the effect of that was and how the charges have affected priority debts on the whole household.
Hope that makes sense.

[stellamanella]

Re: Barclays financial hardship refund

Hiya, well last year we had a baby, he was very poorly when he was born and was in SCUBU for 6 weeks, this resulting in my partner having to take time off work on SSP. Also during my pregnancy, his job (where he's been at for 22 years) cut down everyone's hours as they were struggling, so for about 2 years his job has been cut down from 5 day's to 3 days a week (not for the whole two years but on and off). I then went on maternity leave for 9 months and have only gone back part time and alongside all these issues we still had to pay mortgage/gas/electricity/childcare etc. our debts mounted and his overdraft went from bad to worse but he was reliant on the reserve usage on paying our debts. we would be much better off now (due to his job being more reliable) and me back on proper hours) if he could scrap his 2k overdraft and then he wouldnt be charged every month for this reserve usage fee. as it is at the moment we cannot pay off the overdraft as he can't get out of his reserve. Hope that all makes sense?

[leclerc]

Re: Barclays financial hardship refund

Hiya, well last year we had a baby, he was very poorly when he was born and was in SCUBU for 6 weeks, this resulting in my partner having to take time off work on SSP. Also during my pregnancy, his job (where he's been at for 22 years) cut down everyone's hours as they were struggling, so for about 2 years his job has been cut down from 5 day's to 3 days a week (not for the whole two years but on and off). I then went on maternity leave for 9 months and have only gone back part time and alongside all these issues we still had to pay mortgage/gas/electricity/childcare etc. our debts mounted and his overdraft went from bad to worse but he was reliant on the reserve usage on paying our debts. we would be much better off now (due to his job being more reliable) and me back on proper hours) if he could scrap his 2k overdraft and then he wouldnt be charged every month for this reserve usage fee. as it is at the moment we cannot pay off the overdraft as he can't get out of his reserve. Hope that all makes sense?

Then what you need to do is to set out the framework of what has happened in a chronological order starting with perhaps the birth of the child. Explain the effect that had on your financial situation, I would add what you did to try to alleviate this reduction in money and how the £22 or rather £88 per month has impacted on that issue. The problem I have is that you said the "he was reliant on the reserve usage on paying our debts". The question is whether it ever went over the reserve as well? The fact a reserve was there could be sufficient in itself as a kinda get out clause for Barclays. Furthermore, you need to complete an income and expenditure form to show clearly that you current situation is still one of financial hardship. Hope that makes sense.

[Caspar]

Re: Barclays financial hardship refund

Hi,

I've been reading your post with interest. A couple of things spring to mind. Firstly who has defined you as suffering from financial hardship - have you completed a CFS or any form of Income / Expenditure sheet. If not, there are a few different ones you could use at the top of this page. If you have done one, apologies, but if you haven't, you should as that is what you would be able to use to prove financial hardship to any official body or organisatioin.

The baby issue is unlikely to carry much weight I'm afraid. I'm sorry to hear of his ill health and am pleased for you that things are better now. However, having a child is a choice, and a choice you decided to take. This isn't a criticism, it's just a statement of how a bank may see things. They may turn round and say you chose to put yourself in a worse position when you already knew things were difficult.

I would also think, and the IE sheet would help you do this, you need to break down the expenditure so the bank can see the exact causes of your hardship.

Good luck!
------------------------------- merged -------------------------------
Sorry Leclerc - that post wasn't there when I started typing my reply. Is that great minds think alike or fools seldom differ?

[leclerc]

Re: Barclays financial hardship refund

Caspar, I think the birth of a child is significant re income.
Lending code section 9 part 179 might help in this regards, ie parental/carer leave;

[Caspar]

Re: Barclays financial hardship refund

Good, I'm afraid I actually have to go and read the Lending Code every time I want to use it as I'm not sufficiently au fait with it.

The IE sheet will clearly give the breakdown of these expenses then.

[stellamanella]

Re: Barclays financial hardship refund

Hi guys, thanks for your response.
No, I'm not claiming for me as financial hardship, my other half is as it is his bank account, but TBH he's not very good at things like this so I'm trying to sort it for him (us), but everything that's happened in the last 2 years has affected his overdraft. we had planned on having the baby and had sorted the mortgage out and had some savings, but they went quickly as soon as I got pregnant, because his hours were significantly reduced and then myself and the baby were poorly for nearly 2 months when he was born, this affected my partner too and he had to take time off work. He's always been paid sick at his work, but until this time they changed the rules and said he's going to have to go on SSP (because they were having a hard time at his work too).
No I haven't completed an income/expenditure form I can't find it on the site.
My partner has just been on the phone with the consumer finance department and they said they'd send him one to fill in and he should send it back, they will then assess his situation whether it would be better for them to increase his overdraft so he wouldn't incur these charges or offer him a loan to pay off the overdraft...both are solutions but I'm not sure if they are the right ones.
Has anyone had any success with dealing with this department? if so what was the outcome? Or has anyone successfully reclaimed their charges recently?
If so how did you go about it?
I know we have a case under the lending code as we've had a significant loss in household income, serious illness and parental/carer leave; would it be better to contact the ombudsman and try and get these charges back instead? Just wondering what's the best way to go now.

[Celestine]

Re: Barclays financial hardship refund

Sorry to hear of the problems you are experiencing.
Sadly no-one has successfully fought to get bank charges back since the OFT test case began and was lost in the Supreme Court. Hardship or not, it is currently a dead duck.

Extending the overdraft or converting it to a loan would only be beneficial if you are subject to lower overdraft interest or a a fair loan repayment rate.

Keep us posted with what they offer. Best of luck xxx

[leclerc]

Re: Barclays financial hardship refund

Hi guys, thanks for your response.
No, I'm not claiming for me as financial hardship, my other half is as it is his bank account, but TBH he's not very good at things like this so I'm trying to sort it for him (us), but everything that's happened in the last 2 years has affected his overdraft. we had planned on having the baby and had sorted the mortgage out and had some savings, but they went quickly as soon as I got pregnant, because his hours were significantly reduced and then myself and the baby were poorly for nearly 2 months when he was born, this affected my partner too and he had to take time off work. He's always been paid sick at his work, but until this time they changed the rules and said he's going to have to go on SSP (because they were having a hard time at his work too).
Stella, financial hardship is about household hardship so, whilst you may not be claiming charges for yourself, you are inevitably part of the claim.


No I haven't completed an income/expenditure form I can't find it on the site.
My partner has just been on the phone with the consumer finance department and they said they'd send him one to fill in and he should send it back, they will then assess his situation whether it would be better for them to increase his overdraft so he wouldn't incur these charges or offer him a loan to pay off the overdraft...both are solutions but I'm not sure if they are the right ones.
Has anyone had any success with dealing with this department? if so what was the outcome? Or has anyone successfully reclaimed their charges recently?
If so how did you go about it?
http://www.lendingstandardsboard.org...endingcode.pdf
The above is the lending code and section 9 is the one you need. Both solutions that they are suggesting are ones that could be compliance with the lending code. However, section 194 of the lending code does state this with regards to loans:

"194. Other than in exceptional circumstances, where a consolidation loan is being provided to a personal customer and the subscriber considers the customer to be in financial difficulties, the monthly repayments on the consolidation loan should not exceed the total monthly repayments of the debts being consolidated. Exceptional circumstances may for example include where the customer has a repayment holiday or an interest-free period under their existing arrangement, which is shortly to end."

I know we have a case under the lending code as we've had a significant loss in household income, serious illness and parental/carer leave; would it be better to contact the ombudsman and try and get these charges back instead? Just wondering what's the best way to go now.

You need to exhaust the bank's own complaints procedure first before going to the ombudsman and you need to argue the case with regards to the interpretation that the bank have if they do not refund charges. Remember, they don't have to either under financial hardship. Charges that are historically date back further than the period of financial hardship are unlikely to be refunded at all and many banks won't look back further than 6 months.

[TUTTSI]

Re: Barclays financial hardship refund

Here is the income and expenditure sheet for you to use.

http://www.legalbeagles.info/forums/...ad.php?t=19592

[The Debt Star]

Re: Barclays financial hardship refund

I have every sympathy with the OP and her husband.

As discussed on my own Barclays Personal Reserve thread, the bank made no attempt to offer any practical solutions other than to suggest in writing that I request a manual application for an overdraft to override their automated systems - which manual application was refused me when it should not have been (as per an upheld complaint). The bank never provided any signposts to sources of free, independent money advice either and the only advice I did receive was to "apply for a Barclays home loan" when I visited a branch. I raised hardship quite specifically in my letter to Barclays, concerning the "catch 22" of being forced into personal reserve usage by the bank's refusal to consider any alternative arrangements, such as a repayment plan. They failed to appropriately respond to my case.

Eventually reserve fees and charges exceeded £3K over a 2 year period.

With regard to the charges aspect of my own complaint (as distinct from the hardship claim per se), the bank charges were £30 and only reduced down to £8 after quite a few were made pre-2008.

[SpringerSpaniel]

Re: Barclays financial hardship refund

DS, did you go through the FOS at all ? And were they any use if you did ?

[The Debt Star]

Re: Barclays financial hardship refund

DS, did you go through the FOS at all ? And were they any use if you did ?

Hi Springer. Don't wish to hijack OP's thread! My thread is here http://www.legalbeagles.info/forums/...ad.php?t=25885
and I am awaiting the FOS response any day now.

[stellamanella]

Re: Barclays financial hardship refund

Hi all, thanks for all your help! I will keep you posted of any developments, just waiting to hear from them now. They said they wanted the form back ASAP and if we can get it back before the end of the month, they'll cancel the charges for this month, hopefully they can offer a solution.

DS - highjack away :-) the more info the better. I hope you get the response you deserve in the next few days, and yes please keep us posted! good luck x