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Section 9: Financial difficulties
137. Subscribers should be sympathetic and positive when considering a customers financial difficulties. Although there is an onus on customers to try to help themselves, the first step, when a subscriber becomes aware of a customers financial difficulties, should be to try to contact the customer to discuss the matter. This applies to both personal and micro-enterprise customers.*
138. Personal customers should be considered to be in financial difficulty when income is insufficient to cover reasonable living expenses and meet financial commitments as they become due. This may result from a change in lifestyle, often accompanied by a fall in disposable income and/or increased expenditure, such as:
loss of employment;
disability;
serious illness;
relationship breakdown;
death of a partner;
starting a lower paid job;
parental/carer leave;
starting full-time education; and
imprisonment
139. Financial difficulties may become evident to a subscriber from one or more of the following events:
Items repeatedly being returned unpaid due to lack of available funds;
Failing to meet loan repayments or other commitments;
Discontinuation of regular credits;
Notification of some form of insolvency or court proceedings;
Regular requests for increased borrowing or repeated rescheduling of debts;
Making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
Repeatedly exceeding a credit card or overdraft limit without agreement.
Income and Expenditure forms and addresses are here.
http://www.legalbeagles.info/forums/showthread.php?t=18427
You need to remember that there is no provision within BCOBS or the previous banking code to refund charges as a result of financial hardship. However, all banks operate an exceptional circumstances process which may include a refund of charges during the period in which hardship was at its worst.
The first starting part on financial hardship is the bank but I would look at reviewing your financial position and cancel ALL non essential Direct Debits. Speak with your essential Direct Debit providers and see what they can do to help you, for example, some providers do have hardship funds available which can be applied for.
* Micro enterprises is defined as a business that employs fewer than 10 persons and has a turnover or annual balance sheet that does not exceed 2 million.
Amethyst might want to add some comments to this thread.
137. Subscribers should be sympathetic and positive when considering a customers financial difficulties. Although there is an onus on customers to try to help themselves, the first step, when a subscriber becomes aware of a customers financial difficulties, should be to try to contact the customer to discuss the matter. This applies to both personal and micro-enterprise customers.*
138. Personal customers should be considered to be in financial difficulty when income is insufficient to cover reasonable living expenses and meet financial commitments as they become due. This may result from a change in lifestyle, often accompanied by a fall in disposable income and/or increased expenditure, such as:
loss of employment;
disability;
serious illness;
relationship breakdown;
death of a partner;
starting a lower paid job;
parental/carer leave;
starting full-time education; and
imprisonment
139. Financial difficulties may become evident to a subscriber from one or more of the following events:
Items repeatedly being returned unpaid due to lack of available funds;
Failing to meet loan repayments or other commitments;
Discontinuation of regular credits;
Notification of some form of insolvency or court proceedings;
Regular requests for increased borrowing or repeated rescheduling of debts;
Making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
Repeatedly exceeding a credit card or overdraft limit without agreement.
Income and Expenditure forms and addresses are here.
http://www.legalbeagles.info/forums/showthread.php?t=18427
You need to remember that there is no provision within BCOBS or the previous banking code to refund charges as a result of financial hardship. However, all banks operate an exceptional circumstances process which may include a refund of charges during the period in which hardship was at its worst.
The first starting part on financial hardship is the bank but I would look at reviewing your financial position and cancel ALL non essential Direct Debits. Speak with your essential Direct Debit providers and see what they can do to help you, for example, some providers do have hardship funds available which can be applied for.
* Micro enterprises is defined as a business that employs fewer than 10 persons and has a turnover or annual balance sheet that does not exceed 2 million.
Amethyst might want to add some comments to this thread.
01/11/2009 
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