Post Test Case: The Banks' response to Hardship

[natweststaffmember]

RBS Group

I have referred to our charges unit and to be honest things are still somewhat in limbo with regard to how we handle charges refunds going forward. Naturally we will still look to help customers in financial difficulties although I cannot state at this time whether it will be in the same way as we have been doing until some decisions are taken way above my head.
More on RBS Group when I receive further information.

First Direct

I can confirm that we will continue to look to assist customers in financial difficulties wherever we can. Whilst the waiver may have now lapsed, the principles behind considering refunds or other solutions to assist customers remain the same.

Our charge refund complaints procedures for all customers, whether the request has come in prior or post court decision, adhere to the guidelines and obligations set out by our regulatory bodies so your forum members can be sure they are being assessed fairly.

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

ABBEY and Alliance and Leicester

Thank you for your query regarding the outcome of the current Financial Difficulty Claims that were previously being looked into whilst the Test Case was ongoing.

As the Supreme Court has ruled in favour of the Banks I understand you would like to know the outcome of the Financial Difficulty claims and whether they are still being looked into.

I can confirm the cases we currently have on hold will now be looked into and worked through. Abbey and Alliance and Leicester will be responding to the customers regarding their cases.

We have agreed with the FSA that the waiver which allowed us to put a hold on complaints relating to Bank fees is no longer valid. We will be working through the backlog of complaints to consider these. We will be writing to each customer soon, although this will take some time as there are many thousands outstanding.

I hope this helps you and clarified our current position regarding Bank Fees.

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

Co-Operative Bank
Initially this was asked with regards to bank charges and financial hardship but I went back to them prior to a response with regards to the Post Supreme Court decision.

"Following the Supreme Court decision last week, we are still reviewing the outcomes from the ruling and how this affects our existing policies.

We do not have a specific income and expenditure form on the website, however we do have a budgetary planner to help people work out their finances which, together with advice on dealing with debt is available on our Good With Money Site Dealing with debt

Following receipt of income and expenditure details we contact the customer either by telephone or letter. This may be for a variety of reasons eg to seek clarification, request additional information or to advise of the outcome

In cases where we are already dealing with financial difficulties cases, customers will have been issued with letters which include both the contact number and the name of the person dealing with the case

Customers who do wish to contact us can do so at: PO Box 101, 1 Balloon Street, Manchester, M60 4EP. "

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

Abbey

There was an issue that arose with regards to something happening this Friday. Abbey have confirmed that the situation remains unchanged and that "there is no update at this stage", to quote them.

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

Clydesdale/Yorkshire
The Bank is still considering the outcome of the Supreme Court judgement in relation to the impacts it will have on financial difficulty cases. However, I can confim that the Bank adheres to the princples set out under BCOBS.


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Allied Irish Bank

With reference to your previous correspondence we wish to advise that if customers are in financial difficulty they should contact us and let us know. We may ask them to complete a short questionnaire regarding their financial circumstances. The sooner they advise the Bank of their concerns the more help we can be.

Apologies but the responses are taking time since everyone is still considering the Supreme Court decision. We'll get there though.

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

Halifax
We will still consider hardship claims - confirmation can be found at:

http://www.halifax.co.uk/helpcentre/...ge.asp?tag=BA5

Statement reads:

"We will continue to treat customers sympathetically who are vulnerable and in financial hardship."

As always, we will continue to treat each case on its own merits.

[Ruby]

Re: Post Test Case: The Banks' response to Hardship

'As always we will continue to treat each case on its own merits' - HBos stance on hardship claims is that it only pays out charges from when after account goes into collections. My arguement with them at the moment that my account would not have gone into collections in the first place if they had not charged me at least £3000 in the two years prior to going into collections. Realistically I was in financial difficultly long before my account was taken over by collections ... The chap I am liaising with is sympathetic with my case but his hands are tied. So what the hell do they mean 'own merits'!!!!!

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

'As always we will continue to treat each case on its own merits' - HBos stance on hardship claims is that it only pays out charges from when after account goes into collections. My arguement with them at the moment that my account would not have gone into collections in the first place if they had not charged me at least £3000 in the two years prior to going into collections. Realistically I was in financial difficultly long before my account was taken over by collections ... The chap I am liaising with is sympathetic with my case but his hands are tied. So what the hell do they mean 'own merits'!!!!!

Have you read the BCOBS stuff?

[Ruby]

Re: Post Test Case: The Banks' response to Hardship

I have read it, but I believe it is even more important that HBOS have read it. I have pointed out the error of their ways, and even e-mail the CEO but nobody is able to help me. They say it can take 6 - 8 weeks (since Nov. 25) to come to a decision as to what to do with cases such as mine

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

I have read it, but I believe it is even more important that HBOS have read it. I have pointed out the error of their ways, and even e-mail the CEO but nobody is able to help me. They say it can take 6 - 8 weeks (since Nov. 25) to come to a decision as to what to do with cases such as mine

Which is the maximum time allowed to deal with complaints prior to going to the FOS. I don't see a problem with that timescale since that is the MAXIMUM timescale. There is not difference whether you are in hardship or not but providing the relevant proof is sent then they should not need to keep to that 8 week timescale. You still need to argue the same way you did prior to the OFT test case ending. Financial Hardship claims are UNAFFECTED by the decision. They only have to consider a refund of charges during the period of financial hardship.

[Ruby]

Re: Post Test Case: The Banks' response to Hardship

They only have to consider a refund of charges during the period of financial hardship - according to HBOS that is from when the account goes into collections. My agrument is that my account would have not gone into collections in the first place if it had not accured £3000 or so in charges the two years prior to this. Therefore realistically I was in financial hardship long before the collections department took it over. The collections dept. is last pit stop.

THE BANK PUT ME IN FINANCIAL HARDSHIP!!!

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

They only have to consider a refund of charges during the period of financial hardship - according to HBOS that is from when the account goes into collections. My agrument is that my account would have not gone into collections in the first place if it had not accured £3000 or so in charges the two years prior to this. Therefore realistically I was in financial hardship long before the collections department took it over. The collections dept. is last pit stop.

THE BANK PUT ME IN FINANCIAL HARDSHIP!!!

The loss of income caused the financial hardship because the charges are the consequences of not having enough money to cover outgoing payments. What was the cause of that loss of income--unemployment, separation from a partner, unexpected outgoing (ie boiler fixed, fridge needing replacement), death, birth of a child, loss of overtime hours.

The charges weren't the cause, the loss of income WAS the cause so that is our starting point.
Furthermore, do you still use the account today? Are you still incurring charges today? are the arrears getting worse today?

[Ruby]

Re: Post Test Case: The Banks' response to Hardship

I don't use the account today, changed banks three years ago and in repayment plan with HBOS. Since then the charges have stopped. The Change is circumstances, birth of a child and loss of full time employment is major factor. Also to be honest living beyond our means. It really bothers me that they have so far only paid out £805 as a good will gesture when they know full well I should be getting at least £2500 more. That money would come it very handy right now in settling our council tax arrears and mortgage arrears.

[natweststaffmember]

Re: Post Test Case: The Banks' response to Hardship

I don't use the account today, changed banks three years ago and in repayment plan with HBOS. Since then the charges have stopped. The Change is circumstances, birth of a child and loss of full time employment is major factor. Also to be honest living beyond our means. It really bothers me that they have so far only paid out £805 as a good will gesture when they know full well I should be getting at least £2500 more. That money would come it very handy right now in settling our council tax arrears and mortgage arrears.

From my perspective, the financial hardship route I don't think is one you should expect any further payout anytime soon since the account is not worsening your hardship. The current account provider you use today is the route you go based on today's factors that are causing the council tax and mortgage arrears.
Are the arrears worsening/stabilising or getting better?

[Ruby]

Re: Post Test Case: The Banks' response to Hardship

The arrears are stabilising. As much as what you say is not what I want to hear it is good to get someones else's perspective on it. It really does bother me that £2500 of my money is a drop in the ocean for them but means so much to me and my family.