defaulted over bank charges? help

[Prudence1]

hi

id like some advice as to the best course of action. ive got a default from a high street bank/building society that is made up entirely of charges. ultimately id like this removed if possible but id like to know what the best way to generally get it sorted is.
the basics:
opened a BASIC account in 2008- used it fine until around 2009 when i had zero balance and a direct debit try to go out without realizing- the bank refused the direct debit and then charged me.... i stupidly refused to pay it out of ' principle' for about 10 months... the charges then built and built until they got to around £300. Then one day i checked my account online, decided to sort it and paid the full amount shown that was overdrawn.... i then started using my account again with no problems for around a month. Then all of a sudden i checked one day and it was around £500 overdrawn!! i rang them and they informed me it was backdated charges for the account was inactive... what??? i thought they had already added all the charges. i was furious and hung up on her as i just couldnt see where she was coming from with it. so anyway i refused to pay it but unfortunately i had a regular monthly payment going into the account of £100 so it WAS being paid. £100 went in a month but then obviously i was still being charged for being in unauthorised overdraft.
anyway once id managed to get the £100 regular payment cancelled ( it took me a few months) i just stopped looking at the account and used another bank.

so i now have a £300 default on my credit file- this is made up ENTIRELY of charges. I would like to know if :

a) the default is lawful if made up solely of charges? ( ive seen some threads on ico guidelines that it shouldnt have defaulted if made up of charges)

b) can i attempt to get the money back that i paid them charge wise.. i cant remember exactly how much each charge was or the grand total

This is what i have done so far..
1) july 2013- i sent in the cca request letter requesting agreement, default notices, statement of accounts via recorded delivery...... no response

2) i then called them in October 2013 to query this... all i got was an apology that no one responded and that it was with a debt collectors and the letter was probably forwarded to them. I then made an official complaint over the phone.. they took it and said i would receive a call within 2 working days... its now been 8 and Ive heard nothing.

3) i raised a dispute with equifax that the default was made up of charges etc... the bank came back with " correctly added, no amendments"

grrrr..... i don't know what to do with this..... i was going to SAR them to make sure i have all the facts on my account first but then im not sure what to do... id basically like to know what i CAN do.... for all i know they may have done everything right and i don't have a leg to stand on?

im sorry this is really long winded i just thought it better to post all the info.

any advice would be great thanks

[FlamingParrot]

Re: defaulted over bank charges? help

This is what i have done so far..
1) july 2013- i sent in the cca request letter requesting agreement, default notices, statement of accounts via recorded delivery...... no response

As this is a current account, the standard s.77-79 CCA request you'd use for loans and credit cards wouldn't apply here, there wouldn't be a credit agreement as such.

2) i then called them in October 2013 to query this... all i got was an apology that no one responded and that it was with a debt collectors and the letter was probably forwarded to them. I then made an official complaint over the phone.. they took it and said i would receive a call within 2 working days... its now been 8 and Ive heard nothing.

I would suggest keeping everything in writing rather than discussing things over the phone.

3) i raised a dispute with equifax that the default was made up of charges etc... the bank came back with " correctly added, no amendments"

grrrr..... i don't know what to do with this..... i was going to SAR them to make sure i have all the facts on my account first but then im not sure what to do...

If you don't have all your statements, then this would definitely be a good idea, to find out what was going on with your account, what charges were applied to it and when, etc.

[FlamingParrot]

Re: defaulted over bank charges? help

1) july 2013- i sent in the cca request letter requesting agreement, default notices, statement of accounts via recorded delivery...... no response

As mentioned above, the standard CCA request doesn't apply to overdrafts, however, you could send the following:

Dear Sirs,

Account/Ref

Under the provisions of The Consumer Credit (EU Directive) Regulations 2010 and also c.39 (s.74 (A&B) (VA)) CCA(1974) I wish to formally request a copy of the original overdraft agreement and relevant paperwork that you should be sending me annually for this account.

As I held what can only be regarded as an 'Agreed Overdraft', which has now reverted to an 'Unauthorised Overdraft' then the lending becomes regulated in line with c.39 Part VA (s.74) (s.1(b)) CCA1974 meaning the normal rules and CCA(1974) protection applies to this account.

You should be sending an annual reminder to me regards the overdraft, as well as copies of the original agreement made and an annual renewal form that contains the relevant prescribed terms that are clearly outlined in s.74(A)2(a,b,c,d,e). I highlight this provision for your perusal;

s.74A(2) The current account agreement must include the following information at the time it is made:

(a)the rate of interest charged on the amount by which an account-holder overdraws on the current account or exceeds the pre-arranged overdraft limit,
(b)any conditions applicable to that rate,
(c)any reference rate on which that rate is based,
(d)information on any changes to the rate of interest (including the periods that the rate applies and any conditions or procedure applicable to changing that rate), and
(e)any other charges payable by the debtor under the agreement (and the conditions under which those charges may be varied).

You should also be paying attention to s.74(B)(2) which reads, I quote;

s.74B(2) The matters referred to in subsection (1) are:

(a)the fact that the current account is overdrawn or the overdraft limit has been exceeded,
(b)the amount of that overdraft or excess,
(c)the rate of interest charged on it, and
(d)any other charges payable by the debtor in relation to it (including any penalties and any interest on those charges).

Therefore in line with the above, could you please send me the required documents. I trust that I have set out the position clearly and I await your response.

The background info for that letter can be found here: http://www.legalbeagles.info/forums/...144#post312144

[FlamingParrot]

Re: defaulted over bank charges? help

grrrr..... i don't know what to do with this..... i was going to SAR them

This is the SAR letter, it should be sent recorded delivery and they have 40 days to respond.

Dear Sirs

Account No: xyz

Subject Access Request - S.7 Data Protection Act 1998

Please supply me with a copy of all information your company hold on me including a list of accounts and details of payments along with copies of statements.

Under the Data Protection Act 1984 and 1998, and including the right of subject access under these acts, I hereby request that you supply me with any and all historical data in your possession which, in any way appertains to me, including (but not exhaustively) a copy of the original signed executed agreement; statements of account; duplicate statements and/or print outs of all account transactions; all internal and external correspondence sent or received by you including memo’s, logs, notes, screen prints and transcripts; notes of manual interventions such as telephone attendants' notes, copies of stored telephone conversations, internal and external emails; any other information held on all types of media in any relevant filing system. If you store any of the older records on microfiche, please be aware that the Information Commissioner deems this to be a relevant filing system under the Act. As such, any microfiche data must be sent to me in fully legible and comprehensible form.

Additionally, where there has been any event in my account history over this period which has required manual intervention by any member of your staff, or any other person, I require disclosure of any indication or notes which have either caused or resulted in that manual intervention, or other evidence of that manual intervention in relation to my business with you. If you are unable to supply this data because there has been no such manual intervention, then please be so kind as to confirm this in your response.

If you have disclosed any information to a third party (with or without my express permission), will you please include details of this in your reply, along with notes of any legal action passed or pending (to include a true copy of default notices, court orders and the like).

Where any information that you provide includes any charges, for example returned payments, late payment fees, and so forth, would you please advise your breakdown of actual costs (liquidated damages) incurred for each charge, and the Term or Condition on which you rely upon to claim such a charge. I also require that you forward a true copy of the Terms and Conditions that were in force at the time my account was opened, and any subsequent amendments to those Terms and Conditions.

I enclose the statutory maximum fee of £10.00 to access ALL data held by you about myself. You should be fully aware of your statutory obligations under the Data Protection Act and that any failure to comply with this request will involve a complaint to the ICO as well as potential legal action.

You have 40 days in which to comply with this request and note that this request has been sent Recorded Delivery so I can ensure compliance on these issues comply within the legislative time frames.

Yours faithfully,

[Prudence1]

Re: defaulted over bank charges? help

Thank you .
I am posting my sar today .
I didn't have an authorised overdraft so I don't think I can use that letter?

Ive seen mentioned on threads quotes on ico guidelines something like " if a default is made up of mostly charges to which the account would not have defaulted without them then the default should not be applied "

but it I cannot find it on the guidelines myself can anyone help ?

[lachlansievier]

Re: defaulted over bank charges? help

I would like to request a refund of all the default charges that have been applied to my account. What can i do for that please suggest me?

[MIKE770]

Re: defaulted over bank charges? help

I would like to request a refund of all the default charges that have been applied to my account. What can i do for that please suggest me?

Current Account? if so then unless you can prove real hardship case then you will have a problem. and then you could start by making a complaint or set the actual hardship situation and the affect the penalty charges have affected you? I have been trying for 5 years now! so it is not east., but Read under BCOBS and digest.