Clydesdale Bank - Refused Charges Under Financial Hardship

[ChilliPSco]

My first post so a big hello from me.

Not sure whether this is the correct section of the forums, but anyway.

Has anyone had any dealings with Clydesdale Bank in reclaiming bank charges under 'Hardship'?

I have been receipt of ESA since Nov 2011 and since then I have amassed a total of £375.00 in charges and when you add 8% interest to those charges of £29.57 it comes to a total of £404.57.

I sent them a letter dated 14th November 2013 requesting these charges back under financial hardship, because at times I have found it difficult to pay for essential living costs and bills because charges were taken from my benefit. I had a response on the 13th December 2013 stating the terms & conditions of their current account and as a gesture of goodwill a refund of £50 in bank charges (for Sept & October 2013), which I find a slap in the face and derisory. I did quote BCOBS in my original letter specifically the following rules:

Rule 5.1.1 R states “A firm must provide a service in relation to a retail banking service which is prompt, efficient and fair to a banking customer and which has regard to any communications or financial promotion made by the firm to the banking customer from time to time.”

Rule 5.1.4 G states “Principle 6 requires a firm to pay due regard to the interests of its customers and to treat them fairly. In particular, a firm should deal fairly with a banking customer whom it has reason to believe is in financial difficulty.”

I then proceeded to send them an email (which has been confirmed as received over the telephone) giving them another 14 days to look at their decision again otherwise I would happily take it to Glasgow Sheriff Court - Small Claims. I was then told that the offer of a refund of £50 charges was the banks final offer and that I was free to complain to the FOS or go straight to court.

I have managed to find the forms for a small claims at the Sheriff Court.

I am just wondering how best to word the Statement of Claim. Do, I notify the court that the bank has treated me unfairly under BCOBS Rule 5.1.1 R & Rule 5.1.4 G. Should I also mention that bank has failed to take into account my income & expenditure and that following my final letter, they have refused to look at it again? It's the Statement of Claim that is confusing me and what to put on the Statement of Claim.

Is there any other advice that members here could give me?

Thanks.

[leclerc]

Re: Clydesdale Bank - Refused Charges Under Financial Hardship

This site does not advocate the route that you are planning on taking so I won't either. At the moment, Clydesdale Bank have complied with what is required under The Lending Code and financial hardship section 9.

Had you come onto the site after the offer and asked for advice then we might have been able to put together a better argument but the BCOBS argument you are going to try to make to a court has so far NO SUCCESS whatsoever and therefore I think it unwise for others on this site to advocate court action on the basis of financial hardship.

If you take it to court then I won't help you lose your case, however, if you want to take a second look at the financial hardship case then we can do.

[ChilliPSco]

Re: Clydesdale Bank - Refused Charges Under Financial Hardship

This site does not advocate the route that you are planning on taking so I won't either. At the moment, Clydesdale Bank have complied with what is required under The Lending Code and financial hardship section 9.

Had you come onto the site after the offer and asked for advice then we might have been able to put together a better argument but the BCOBS argument you are going to try to make to a court has so far NO SUCCESS whatsoever and therefore I think it unwise for others on this site to advocate court action on the basis of financial hardship.

If you take it to court then I won't help you lose your case, however, if you want to take a second look at the financial hardship case then we can do.

Hi,

Thanks for your reply, it's much appreciated.

I'm open to ALL avenues in order to make Clydesdale see some sense here. I'll be happy to go down a completely different route. I wasn't only going to just use BCOBS in court to argue my case. However, if I can get help taking a second look at my case and approaching Clydesdale again in an amicable manner, then I am extremely happy to do that. To be honest I also wanted to use court as an extremely last resort, but after being told by Clydesdale that this was their final decision and with me unlikely to submit a complaint to the FOS, I didn't see any other option, but to go to court.

I took some advice from other forums around the net and one in particular recommended court action and after having looked at the Govan Law Centre blog, there were other options in which to proceed to court using an amended statement of claim.

If I drop my planned action and approached them again or went at it in a different way, then I would very much like to hear what you can do and take it from there.

Would that be suitable to yourself?

TIA

[EXC]

Re: Clydesdale Bank - Refused Charges Under Financial Hardship

Rule 5.1.1 R states “A firm must provide a service in relation to a retail banking service which is prompt, efficient and fair to a banking customer and which has regard to any communications or financial promotion made by the firm to the banking customer from time to time.”

Rule 5.1.4 G states “Principle 6 requires a firm to pay due regard to the interests of its customers and to treat them fairly. In particular, a firm should deal fairly with a banking customer whom it has reason to believe is in financial difficulty.”

Unfortunately and despite what you may have read on CAG, BCOBS does not cover bank charges or in fact any fees or charges at all. As Rule 5.1.1 R suggests it only applies to 'communications or financial promotions'. Additionally 5.1.4 G is not in fact a rule but merely guidance (as denoted by the 'G') and as a 'Principle' is not actionable by a private individual in any event.

Approaching Clydesdale again in an amicable manner would be by far the best approach.

[leclerc]

Re: Clydesdale Bank - Refused Charges Under Financial Hardship

Hi,

Thanks for your reply, it's much appreciated.

I'm open to ALL avenues in order to make Clydesdale see some sense here. I'll be happy to go down a completely different route. I wasn't only going to just use BCOBS in court to argue my case. However, if I can get help taking a second look at my case and approaching Clydesdale again in an amicable manner, then I am extremely happy to do that. To be honest I also wanted to use court as an extremely last resort, but after being told by Clydesdale that this was their final decision and with me unlikely to submit a complaint to the FOS, I didn't see any other option, but to go to court.

I took some advice from other forums around the net and one in particular recommended court action and after having looked at the Govan Law Centre blog, there were other options in which to proceed to court using an amended statement of claim.

If I drop my planned action and approached them again or went at it in a different way, then I would very much like to hear what you can do and take it from there.

Would that be suitable to yourself?

TIA

Here is what the financial ombudsman service class as cases of financial hardship: http://www.financial-ombudsman.org.u...fficulties.htm


In financial hardship cases, the bank is under no obligation to repay any charges whatsoever. There are instances in which they might have to, ie where the client is under 18 years of age at the time the charges were made or where the bank has made an error. In terms of financial hardship you have to provide evidence of that but usually the case is about when there is charges after another meaning you have less than the amount you need to pay specific priority debts which are classed as rent/mortgage, council tax, water, gas, electricity, HP on car you use for work but it excludes credit cards and loan repayments and also sky/cable services.

You have to argue that the charges over a period of time did this with evidence of that fact. £50 on the face of it appears to be reasonable by the bank but if you can argue the case perhaps around the period of time that they are refunding two charges then perhaps they might increase that amount.

Have they waived any charges due out?

[ChilliPSco]

Re: Clydesdale Bank - Refused Charges Under Financial Hardship

Thanks for your replies.

There is an overdraft on my account of £200. When I first started receiving ESA it was a £147 every 2 weeks. I think that was Assessment Rate ESA. I failed my first medical and immediately appealed which took nearly 18 months to get to appeal and win.

The charges are as follows:

£25 21/12/2011
£25 21/2/2012
£25 6/3/2012
£25 21/3/2012
£25 22/5/2012
£25 21/8/2012
£25 19/10/2012
£25 21/11/2012
£25 29/1/2013
£25 26/2/2013
£25 27/3/2013
£25 27/6/2013
£25 25/7/2013
£25 26/9/2013
£25 29/10/2013


The charges left me struggling at times to buy food and as I'm diabetic I need to have a healthy diet, as food prices rose, so did what I was paying for a healthy diet. I live with friends and pay them £40 a week board if you will. It has been a struggle at times.

After all this, I've even politely emailed the CEO to outline my disgust that I don't think I've been treated fairly and the advisor dealing with my complaint hasn't taken everything into consideration. They've never asked for a I&E form, I think the advisor has just looked at my account and said what he's had to say. I am tempted to send in an I&E and ask them to look at it again. They've not even said they will waive any charges going forward.