Tweet
HSBC have been busy little bees writing to customers who have complained about bank charges telling them they consider the complaint resolved following the judgment in the Supreme Court which stated the OFT were unable to consider fairness of overdraft fees under regulation 6(2)b of the Unfair Terms in Consumer Contracts Regulations.
Customers who complained to HSBC and First Direct have been receiving letters stating '' In summary we believe that the disputed charges were properly charged and the outcome of the legal proceedings confirm that position. We are therefore not upholding your complaint and will not be refunding you bank charges ''
HSBC appear to be the first of the banks to write to consumers rejecting their complaints following the Judgement on the 25th November.
As the Supreme Court judgment covered issues relating to whether the OFT could assess fairness solely on the basis price or adequcy of the charges we believe you can respond to this letter pointing out that the 'level of charges' is not the only reason you are complaining about the charges.
The arguments put forward by consumer groups and the OFT have always refered to regulation 5(1) of the UTCCR which looks at imbalance of the overall contract, and we are now looking much more at paragraph 140 of the Consumer Credit Act which considers the unfairness of the overall standard agreement with the bank.
We believe customers can respond to the letters from HSBC, and other banks, asking them to escalate the complaint on those grounds and we are waiting for the OFT's final decision on the next moves which will be announced on Tuesday morning before advising people on the wording of their responses to the letters.
Consumers also retain the right to take their complaint to the financial ombudsman, and we are comminucating with FOS as to the way forward on these complaints.
Please keep an eye on the forums this week over the festive period as there will be a lot of work going on and letters and guidance clarified and posted to assist consumers continuing with their complaints.
Customers who complained to HSBC and First Direct have been receiving letters stating '' In summary we believe that the disputed charges were properly charged and the outcome of the legal proceedings confirm that position. We are therefore not upholding your complaint and will not be refunding you bank charges ''
HSBC appear to be the first of the banks to write to consumers rejecting their complaints following the Judgement on the 25th November.
As the Supreme Court judgment covered issues relating to whether the OFT could assess fairness solely on the basis price or adequcy of the charges we believe you can respond to this letter pointing out that the 'level of charges' is not the only reason you are complaining about the charges.
The arguments put forward by consumer groups and the OFT have always refered to regulation 5(1) of the UTCCR which looks at imbalance of the overall contract, and we are now looking much more at paragraph 140 of the Consumer Credit Act which considers the unfairness of the overall standard agreement with the bank.
We believe customers can respond to the letters from HSBC, and other banks, asking them to escalate the complaint on those grounds and we are waiting for the OFT's final decision on the next moves which will be announced on Tuesday morning before advising people on the wording of their responses to the letters.
Consumers also retain the right to take their complaint to the financial ombudsman, and we are comminucating with FOS as to the way forward on these complaints.
Please keep an eye on the forums this week over the festive period as there will be a lot of work going on and letters and guidance clarified and posted to assist consumers continuing with their complaints.
Comment