Would like to reclaim charges that have been applied since my claim was put on hold

[Castlebest]

hiya pblackie dont know if you have seen this thread, might be some use to you

 

http://www.consumeractiongroup.co.uk/forum/hsbc-bank/125577-metropolitan-collection-services-action.html

 

pete

[johnnymitch]

I just love that one pete ----- one of your masterpieces ......

[pblackie]

And so on to the next piece of the saga.

 

Following the SC ruling I sent the following letter courtesy of the Govan law centre:

 

I write further to my outstanding complaint concerning unfair bank charges applied to my current account which had been placed on hold pending the Supreme Court test case of OFT v. Abbey National plc and others [2009] UKSC 6. I understand the FSA’s waiver has been lifted and you can now proceed to determine my complaint.

Although the OFT lost this case under regulation 6 of the Unfair Terms In Consumer Contract Regulations 1999 (UTCCR), the Supreme Court stated that this did “not resolve the myriad cases that are currently stayed in which customers have challenged Relevant Charges” (para 61 of the court’s judgment). In particular, the Supreme Court made it clear that “it remained open to question whether bank charges were fair” in relation to regulation 5(1) of the UTCCR (para 80 of the Supreme Court’s judgment).

Accordingly, in consideration of my existing complaint, and in light of the Supreme Court’s judgment, please ensure that you have regard to the following amended grounds of complaint:

(1) I seek a refund of overdraft charges (with interest thereon) applied to my current account because these charges were unfair in terms of regulation 5(1) of the UTCCR as –

(a) the charges were set by reference to the overall costs of providing current account services to all of my bank’s customers, rather than the costs incurred by my individual conduct which occasioned the charges;

(b) at no time did my bank ever inform or adequately explain to me, that I would be paying bank charges in order to cross-subsidise the costs of providing the vast bulk of their customers with ‘free if in credit banking’;

© my bank’s charging structure was designed or created the potential for rolling or multiple charges, with charges and interest being applied and/or occasioned by ‘charges on charges’;

(d) the way that charges were imposed and accumulated in terms of my bank’s charging structure was unclear, unpredictable and complex; and

(e) the main providers of current accounts in the UK operated a similar charging structure to my bank, and in so doing restricted market competition, resulting in my inability to obtain an alternative current account with a fair charging structure;

(2) Separately, I also seek a refund of overdraft charges (with interest thereon) applied to my account because these charges were unfair within the meaning of section 140A(1) of the Consumer Credit Act 1974 for the reasons as set out in paragraph (1)(a) to (e) above, and in relation to the following additional reason: the charges were excessive in relation to the level and/or cost of the borrowing which triggered these charges.

Please note this is not a template letter as my letter contains specific factual information which relates solely to my personal circumstances. I would ask you to have regard to the following examples of detriment which I have suffered as a result of my bank’s unfair and punitive charges:

· As a result of HSBC applying charges to the account we were entered into a cycle of debt.

· HSBC reduced our overdraft by £500 3 weeks into the month despite us asking them to wait another week until we had been paid and were able to cover the reduction in the overdraft limit.

· Having not been given the one weeks grace we requested charges were applied for unpaid direct debits, had the overdraft been left at the £2000 level for 1 more week we would have been able to pay the direct debits without exceeding our overdraft limit and as such avoid incurring any penalty fees.

· As soon as fees were applied to the account because of the situation described above we were in a cycle we could not break where HSBC were applying penalty fees every month.

· Since we took the step to change Bank accounts we have not incurred any penalty fees on the new account despite our income and outgoings remaining the same. This clearly shows that the initial actions of HSBC pushed us into a cycle of penalty charges.

I would be grateful if you could please acknowledge safe receipt of this letter, and confirm that in determining my complaint you will have due regard to my amended grounds of complaint.

[pblackie]

The FOS replied to this letter with:

 

"Thank you for letting me know that you wish to proceed with your complaint, albeit, on amended grounds.

 

I would like to explain that this service is unable to investigate the 'new' grounds of your complaint until the bank has been given the opportunity to carry out its own investigation. Therefore, I would suggest that you contact the bank. You will of course be given referral rights to this service once the bank's complaints procedure has been exhausted.

 

To which, again with Govan's help, I replied :

 

write in response to your email advising that I must contact my bank with

respect to the 'new' grounds of my complaint, so that it may 'investigate'

these.

 

Please note these are not 'new' grounds, rather I have been required to

amend or update my existing complaint to take on board a change in the law

from the case of OFT v. Abbey National plc and others [2009] UKSC 6.

 

In light of the Supreme Court's decision, I have simply alerted you to what

I now understand to be the relevant law which applies to my complaint, and

which provides authority for the proposition that these charges were unfair.

 

In determining a complaint , I understand that the Ombudsman will have

reference to what is 'in his opinion, fair and reasonable in all the

circumstances of the case'. DISP 3.6.4 of the FSA's Handbook provides that

in considering what is fair and reasonable, 'the Ombudsman will take into

account: (1) relevant law and regulations'.

 

Accordingly, I would be grateful if you could now proceed to determine my

complaint, having regard to what I now understand to be the applicable law

which supports my view that these charges were unfair.

 

If any further information is required please let me know. I look forward to

your written reply.

 

 

They then proceeded to review the complaint as a new one.

[pblackie]

Finally i have received the following reply from the FOS:

 

 

 

Any thoughts on next steps as the FOS appear to have completly ignored my amended complaint particulars?

[Castlebest]

As the FOS say they can do no more I think you should take your claim to the county court.

 

pete