Rosemary ***WON FULL SETTLEMENT***

[Rosemary]

Surprise, surprise..... received a letter from A&L this morning informing us that they were closing the account as from 20th October. This is no real heartache as it wasn't our main account but how dare they? I was only getting back what was in fact my own money! And what about those people who have their main business with this bank or struggle to find an alternative bank. Just because I argued against them. That could be viewed as intimidatory. Particularly, as there was no warning of their action. How can such a huge organisation behave like a little spiteful spoilt over-indulged ankle-biter ?? So, am having to pay off the overdraft and I shall then write to the OFT to report them. It's a bit like when you get your car vandalised. It is hardly worth reporting it to the police - what use will it be? But methinks, that my own complaint will add weight to others who have bothered to complain and a picture will be drawn up by those who have some power over these financial monoliths and they might get a nice little smack around the back of their knees and told to behave properly!!!!

[hagenuk]

Complain to the Banking Ombudsman too, it costs them money every time - regardless of the outcome.

[lindy123]

Well done!

[Guest ian cognito]

Well done !!!! I'm just strrting out on A & L myself so thank you for the info and encouragement.

 

I too am expecting my account being closed, interesting about lots of complaints going into the banks from the strength of numbers on this site but what about also voting with our feet, I have already seen a number of people are opening parachute accounts with A & L - why??? lets look at the banks who are being most reasonable about this and give them our custom, after all when A&L have only got customers left who 'toe the line' and have no charges to rake in - who will be the winners?

[Rosemary]

Indeed. And as a matter of principle, I am writing a humdinger of a complaint to A&L about the threat of closure. Will paste it up here if anyone wants to use it. It took me all Sunday afternoon to compose. Don't know where it will take me but it might be nice to get them to toe the line a bit. At least another letter will give them another headache and yes, I will be sending a letter to the FSA, et al if they follow through with their threat of closure.

[Guest ian cognito]

I see you sent a lot of your prelim letters on the same date, this did give you any problems with the amount of work involved, I was going to stagger mine but i think i'd like to git it all over and done with now.

 

Go get 'em - and soften them up for me!!!

[Rosemary]

Yeah - I was on a roll!!!!! Anyway, it is all staggered by the different times they all answered my letters. Some were really quick to answer and I'm quite enjoying the exchange but some of my files have dust on them (Lloyds for starters). So, I just concentrate on those that are important - the others can wait a few days and I won't go to court all at the same time for money reasons!!!

[Rosemary]

Right. Here is my proposed reply to A&L about their decision to close my account. Would really appreciate any comments or thoughts before I post it.

16th September 2006

Mr I Blunt

Solicitor

Alliance & Leicester Plc

Group Legal Services

Customer Services Centre

Narborough

Leicester LE19 0AL

Dear Mr Blunt

Account: ********* Sort Code ******, Account number ********

I write in response to your letter dated **th September 2006 concerning my County Court Claim ******* for the return of unlawful penalty charges.

Thank you for your cheque for £****** in settlement of this claim and I can confirm that I have written to Northampton County Court confirming that the case has been settled.

I was extremely concerned however, to note your final paragraph in which you said, “as it is clear that you do not accept the terms and conditions for the operation of your account we will shortly be contacting you to discuss its future operation”. Within a few days, I had indeed received a letter from a Mr Andy Benson in Customer Services to confirm that the account will be closed on or shortly after 20th October 2006.

I would like you to note that I see this action as an entirely retaliatory action in response to my complaint. It was introduced retrospectively and is a punitive punishment which is disproportionate and unfair. Your action appears to contradict the banking code of practice, the Financial Services Authority judgments and the common law.

On 4th July 2006, the FSA’s position on account closures (Briefing Note BN 023/06) was:

“Generally, under FSA rules on dispute resolution and complaints, we would not expect any regulated firm to discriminate against a customer who makes a complaint.

However, the relationship between a bank and its account holders, including the circumstances and manner in which accounts are closed, is governed by the Banking Code.

We have therefore raised this issue with the Banking Code Standards board, and informed those firms involved that we have done so. As a result of those conversations, we understand that the Banking Code Standards Board intends to state its position on this issue presently. We encourage the industry to use this opportunity to demonstrate the value of the Code in ensuring fair and reasonable outcomes to such disputes”.

Then, on 27th July 2006, the Banking Code Standards Board said in their bulletin no.21:

“There has been media coverage recently of a small number of subscribers that are, or are alleged to be, operating a policy of automatically closing the accounts of customers who have brought court actions against them for recovery of default charges. The account closures are, to the best of our knowledge, being effected after due notice has been given under the requirements of Banking Code section 7.5 and after the subscriber has refunded charges, either in out of court settlement or having had judgment against it.

We ask subscribers to consider very carefully the fairness of closing accounts in such circumstances, taking into account the individual circumstances of each case, to ensure that it is not a disproportionate response.

Without deliberately using the threat of account closure to deter a customer from pursuing a complaint or exercising his or her legal rights, subscribers should make sure that the customers are clearly alerted at an early enough stage in any dispute, if account closure could or will be a consequent of starting court action, and if it is part of the settlement of any case this should also be made clear. We note that the subscribers concerned have explained the account closures as a response to the evidence that the relationship between customer and bank has broken down, with the customer refusing to abide by the terms and conditions of the account”.

Firstly, I was not alerted at an early enough stage to the possibility of account closure. This would have given me the opportunity to have made an informed decision, as to whether continuation of my claim would have been worth the risk of account closure.

Secondly, I would argue that this account was not run irresponsibly and it certainly did not pose any serious risk to yourselves as a financial institution, with a regular income into the account each month. Indeed, the account occasionally ran into difficulties hindered by the application of the default charges – clearly indicated by a reimbursement of these charges of £**** compared to the current overdraft of £**** (£4.87 in excess of the overdraft facility).

Finally, referring to the Banking Code Standards Board’s penultimate paragraph on this matter:

“Customers who are in financial difficulties must be treated sympathetically and positively in accordance with the provisions of Banking Code Section 14. Even if debts are written off alongside default charges that have been challenged in court, such customers may have severe difficulties in finding alternative banking arrangements; this should be an additional consideration when determining whether it is appropriate or fair to close the customer’s account, or even to notify the customer that this is a possible consequence of court action”.

I will also, at this point inform you that as a consequence of your unlawful charges, we were unable to meet the demands of a monthly mortgage payment of £360.98, which resulted in us losing our property to the receivers for arrears on the mortgage of £**** (approx the same amount) at the end of 2005. I would argue that this would not have happened if you had handled our account with fairness and provided positive support, instead of slapping on arbitrary penalty charges and causing considerable hardship. As a result of losing our property, it went to auction and we saw approximately 70% of our original invested equity removed through this enforced sale and contributory costs.

If you still insist on closing this account, I will ensure that your actions which resulted in the above consequences and the resulting threat of closure are reported both to the FSA and the Banking Code Standards Board with the request that the current overdraft is written off by way of compensation.

Finally, I would also seek assurance that you will not file any negative or adverse credit reports against my file, or for that matter, any credit reference agency or third party, which would be considered as unfair processing, as per the Data Protection Act and contrary to the Banking Code of Practice.

I look forward to your urgent response.

Yours sincerely

cc: Mr Andy Benson, Customer Services

What do you think??!!!!

[Lil]

Well i think its a great letter, you have certainly done your homework!! I'm not an expert but WELL DONE!!!

[Guest ian cognito]

I second that, looks good, particularly like..."continuation of my claim would have been worth the risk of account closure."

Hmm now let me think!!!!

[Rosemary]

Difficult one, isn't it? !!!!!!??***@!!!! I'll have a sleep on it, methinks.

[taylorandy10]

Can anyone tell me what address to send the court papers to and how i go about claiming 7761.40 i have gone through the letters stage now at court stage but it say's nothing about a 50000 limit in small claims im totally lost with all of this am thinking about handing it all over to a claims company but wil they have to start the whole process all over again

As for the effect you were on about i am disabled and all these charges were taken from me when i was on social security so had limited money as it was every time i had a charge i would ring and ask for a small £50 overdraft which would have stopped all future charges but they said no then again why would they they were getting a decent amout out of me so guess u can't blame then (said through gritted teeth)

 

Thanks for any help you can give me

[phoenix1]

Hello, I havent really been following these `threads very well but its still very good news to hear someone getting there money back which should not have been taken from them in the first place. A&L has been ruthless in the way it applies and collects its charges, leaving people even further overdrawn and the cycle begins again. I also wonder whether they keep cheques`back until there is not enough money in the account to cover the cheque and pass it through. This has happened to me on more than one occassion with the A&L where I have writtten a cheque and kept money in the bank to cover it and then further down the line have forgot about the cheque and then all of a sudden it is put through the account when there isn't enough money to cover it - wham bank charges!

 

Ive not been able to locate the templetes in the consumer group library. could you please advise. I am claiming against A&L and have recieved list of charges`for one of my accounts and am waiting for the other two lists for other accounts with A&L. watch this space for up dates. But I do need next templete to do the next phase of claiming over recieved all lists of charges. Thank you to the pioneers!

[C&D]

Hi Rosemary.

 

Congratulations on your success, I have claimed back from HSBC so know what a relief it is to get the money back.. it's long winded but definately worth the effort. I am helping my Nan with a claim against A&L at the mo and the allocation questionnaire is due back next Monday (14th) so I am hoping she will receive a letter similar to yours this week..

 

did you have to submit an AQ?

 

Congratulations again.. enjoy spending!

 

Carrie

[orfoster]

Hi Rosemary,

 

What did you hear back from the solicitors etc about your account closure?