Abbey - hardship closure letter

[100mel]

I have been claiming for some 18 months with Abbey for bank charges under hardship. They have turned it down without adequate reason and I am now advised that I should ask them for a financial hardship closure letter. Can anyone enlighten me as to what such a letter actually is and should I actually use this terminology in my letter back to them

The case is already with the FOS who have accepted proof of all my letters of trying to communicate with Abbey on this point since 2007

Thanks

Mel

[natweststaffmember]

Re: Abbey - hardship closure letter

http://www.legalbeagles.info/forums/...ad.php?t=18047

Mel read this thread cos the guidance specifically mentions about communication with customers.
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Furthermore, do you have priority debt arrears(mortgage/rent, council tax, utilities)?
I may have asked you this before BUT that is how it works so we need to find out what we have, whether it is negotiable and if we have a case for the FOS which requires that Financial hardship closure letter so we can see their reasoning behind the decision.

[100mel]

Re: Abbey - hardship closure letter

Yes - I've had mortgage arrears, loan repayments missed and consequent arrears. Charges of over £700 - my overdraft limit has just been halved which is now going to make the situation even more difficult

[natweststaffmember]

Re: Abbey - hardship closure letter

Yes - I've had mortgage arrears, loan repayments missed and consequent arrears. Charges of over £700 - my overdraft limit has just been halved which is now going to make the situation even more difficult

Unless the loan is HP it isn't a priority debt.
Mortgage arrears have to be current and not ones you have paid off already. Are they current?

[Amethyst]

Re: Abbey - hardship closure letter

100mel - the only way to really know if you would be accepted as in hardship by Abbey is to see your IE sheet.

You say the case is with the FOS now, has the case been dealt with by FOS already or has it just gone following Abbeys decision ?

Other than halving your overdraft, has Abbey done anything or offered any help with your financial position ? (repayment plan/moving to basic account type of thing?)

[100mel]

Re: Abbey - hardship closure letter

Abbey have done absolutely nothing to help or offered help at all - they have halved my overdraft facility and taken £700 off me in charges. Yes I still have arrears owing on utility e.g. electricity

M

[Amethyst]

Re: Abbey - hardship closure letter

Good (well not good but you know what I mean)

If your case is already with the FOS you will already have had a final response (closure) letter from the bank. So I wouldn't worry about that.

On your FOS complaint did you send copies of your Income/expenditure sheet and evidence of arrears etc ?

Abbey will go back to FOS and say they have fulfilled their obligations, FOS accept this generally but I think as in your case they have done nothing barring driving you further into hardship they can't accept that excuse form Abbey.

Have you changed accounts now and orgainsed a repayment plan with Abbey ? Have they threatened any action against you ?

[TUTTSI]

Re: Abbey - hardship closure letter

I have been claiming for some 18 months with Abbey for bank charges under hardship. They have turned it down without adequate reason and I am now advised that I should ask them for a financial hardship closure letter. Can anyone enlighten me as to what such a letter actually is and should I actually use this terminology in my letter back to them

The case is already with the FOS who have accepted proof of all my letters of trying to communicate with Abbey on this point since 2007

Thanks

Mel

Hi Mel

Normally if a hardship claim is packaged well from the beginning, Abbey have paid out varrying amounts from 65% of charges only.

Can you please post up here your letters which you sent them and advise a little more about your hardship + post up the letter you sent them detailing your hardship and the I & E which you submitted. Also, can you post Abbey's response. (Please omit your personal details) until we get the whole picture is is hard to be able advise your response. Can you also confirm what evidence you submitted with your claim.

We will try and help all we can once we have the bigger picture. It could be that you have not given sufficient evidences to support your claim.

Tuttsi

[100mel]

Re: Abbey - hardship closure letter

FOS are now looking at my complaint and seem to have accepted that there is a claim to answer. Having now halved my overdraft (created originally to pay charges) the situation will become even more difficult this month as mortgage will no doubt bounce - they know this. You mention "packaging" - I thought in sending copies of outstanding arrears and the fact that my mortgage is with them would be something

Should I open an account elsewhere and if so where? how quickly can I do it? Should I attempt to talk to Abbey?

I'm having sleepless nights over this - how does Abbey putting me in a deeper hole when I am doing my level best to get out of it

Mel

[enaid]

Re: Abbey - hardship closure letter

Yes you should open another account if this is the only one you have and where your wages/benefits go.
There are basic accounts you should have no trouble getting.
Nationwide, Halifax, Natwest, Coop, infact if you Google basic bank accounts you will get a list and then you can apply on line for those that you may not have a branch near you.
You may be waiting a while for FOS to sort this out, the account is clearly in dispute and it looks as though Abbey have not followed the guidelines at all with your account.
Have you made arrangements to pay your arrears off your priority debts?

[100mel]

Re: Abbey - hardship update

My complaint on hardship with Abbey is currently with the FOS. However, I have just had a letter from Abbey essentially refunding me half the charges and cancelling any charges until 2nd November. I no longer use the account following the good advice received here having opened an account elsewhere but just wondering what me response should be to them - thanks I'll accept it but it does not comprise full amount of claim and therefore my complaint with the FOS remains ongoing?

[TUTTSI]

Re: Abbey - hardship closure letter

Excellent news...well done

This should not be a final payment as the balance will be paid when the test case is finalised and the final payment will be based on the agreement with the OFT.

When responding do not state that it is in Full and Final, just accept it as a partial payment and that the balance is to be paid at the conclusion of the test case.


I would also be inclined to write to the FOS advising that you have received a partial offer from Abbey. which you are accepting as a partial payment of your claim until conclusion of the test case.

Tuttsi

[enaid]

Re: Abbey - hardship closure letter

Well done mel xx

[natweststaffmember]

Re: Abbey - hardship update

My complaint on hardship with Abbey is currently with the FOS. However, I have just had a letter from Abbey essentially refunding me half the charges and cancelling any charges until 2nd November. I no longer use the account following the good advice received here having opened an account elsewhere but just wondering what me response should be to them - thanks I'll accept it but it does not comprise full amount of claim and therefore my complaint with the FOS remains ongoing?

A good result for you 100Mel and remember that no offer can be in full and final settlement of the entire amount since it would be a breach of the FSA Waiver on Bank Charges.
The amount should be paid into the account where the charges have come from so will that amount give you a positive balance so you can use the funds to pay off priority creditors?

[100mel]

Re: Abbey - hardship closure letter

Unfortunately, it doesn't - the amount they have offered to pay into the account is less than 50% of the charges owed (without any interest calculation) - what it does is simply take my account back to just under the the new reduced overdraft level (taken down by 50%) in a month - had they paid the full amount of charges then it would have put account into credit and allowed me to clear priority creditors - a point that I made. As the account is not being used they are now just charging interest on their own charges

The FOS officer handling my case has also just made personal contact. I am proposing to write to Abbey today to say that I will look forward to the payment of these funds as a starting point into my account but that the complaint remains ongoing - certainly not full and final - it is a welcome start but then it has taken 18 months to get to this point and get some sort of response out of Abbey

I'll update the situation

Thanks

Mel