Nationwide Hardship Claim Response

[Jamesx81x]

Hi

 

Today i received a letter from Nationwide informing me that they would not be pursuing my hardship claim as i was not in hardship at the time the charges were applied.

 

What the hell they talking about? I was under the impression that a hardship claim can be made if your current and i state current circumstances permit and you qualify under the FSA's guidelines on Hardship?

 

Any advice will be appreciated.

 

Thanks

[maroondevo52]

Hi, james.

 

God knows, what planet they are on ??? That statement sounds like a total load of hogwash.

 

I've 'lifted this piece on hardship............

 

 

There is no firm definition of hardship. The Ombudsman assesses each claim on a case-by-case basis, though generally only those unable to afford basic services or threatened with repossession would qualify to have their case heard.

 

Marc Gander, from the Consumer Action group, says: 'We need a clear ruling as to what hardship is. Otherwise, it is easy for banks not look at genuine complaints. People in need are being turned away.'

 

David Cresswell, from the Ombudsman's office, says: 'We find some banks are not treating people's financial situation sympathetically.'

 

Current account providers were told by the FSA in July that they could sit on bank charge claims pending the results of a test case expected to be heard next year. But a condition of the waiver was that cases of financial hardship should be heard.

 

The FSA has threatened to revoke it if banks fail to adhere to its conditions. Andrea Kinnear, from the FSA, says: 'The waiver does not interfere with a firm's obligations under the Banking Code.'

 

The Code states banks must consider cases of financial difficulty sympathetically and they should 'help you overcome your difficulties'.

 

Those in hardship are not automatically entitled to get their charges back, only to have their claim considered. If your bank rejects your claim, you should complain to the Ombudsman as it will review your finances as a whole to help you out of hardship.

 

While the free Ombudsman service is often sympathetic on hardship cases, those going to the courts have had mixed experiences.

 

I'll have a look around, see what else I can find.

 

Regards.

 

Scott.

[AA99]

Caro, Site Team, pointed me to this one:

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/115023-application-removal-stay-grounds.html#post1921183

[Jamesx81x]

Thank yoo both for the info it is really helpful.

 

I consulted the FSA's guidelines and determined what they see as Hardship before making the claim and meet nearly every major point. This was detailed in the letter and enclosed was a financial statement which if looked at properly and sympathatically as they are asked to do clearly shows a dire situation.

 

With regards to the housing situation my association is already trying to gain a notice seeking possession so i dont things can be much worse than that.

 

With a successful claim from Nationwide it would clear all my arrears hence the reason i went for the claim now. I cant beleive the bull**** they wrote in their letter as i said above.

 

Thanks so far.

[Jamesx81x]

Hi

 

Received final response from Nationwide yet again stating that as the charges did not cause me financial hardship they would not be processing my claim further.

 

They have made no effort to ackowledge my situation neither have they asked me to fill in a financial questionaire to establish my financial standing.

 

The FSA's definition clearly states, “A complainant is considered to be in financial difficulty when his or her income is insufficient to cover reasonable living expenses and meet financial commitments as they become due.”

 

Where in this statement does it say the charges have to cause you the hardship?

 

Also in July 2008, when the exact definitions of hardship were clarified the FSA strongly reiterated that if people were in financial difficulties, the banks and the Ombudsman would need to process their case immediately.

 

So with that i have prepared my complaint to send to the FOS. Hopefully will get somewhere with them.

[yourbank]

Hi

 

Received final response from Nationwide yet again stating that as the charges did not cause me financial hardship they would not be processing my claim further.

 

They have made no effort to ackowledge my situation neither have they asked me to fill in a financial questionaire to establish my financial standing.

 

The FSA's definition clearly states, “A complainant is considered to be in financial difficulty when his or her income is insufficient to cover reasonable living expenses and meet financial commitments as they become due.”

That definition is in the FSA Waiver on bank charges, but it is not necessarily the definition of Financial Hardship.

http://www.fsa.gov.uk/pages/Doing/Regulated/Notify/Waiver/pdf/disp_monthly.pdf

PAGE 11 is the part of financial hardship. part 2 is what you need.

Where in this statement does it say the charges have to cause you the hardship?

 

Also in July 2008, when the exact definitions of hardship were clarified the FSA strongly reiterated that if people were in financial difficulties, the banks and the Ombudsman would need to process their case immediately.

 

So with that i have prepared my complaint to send to the FOS. Hopefully will get somewhere with them.

 

The reality on Financial Hardship is priority debt arrears, ie mortgage/rent arrears, council tax arrears, utilities arrears etc, etc, . That should be the basis on hardship. I don't follow Nationwide's view that their charges have to be the cause of hardship NOW since bank charges last year could have caused arrears to build up.

[Jamesx81x]

Well the priority debts apply to me including the needed to max my credit card/overdraft going over the limit to to be able to afford to live and seeking further credit.

 

This was put to nationwide but they wouldnt even aknolwedge my circumstances.

 

Thanks

[yourbank]

Well the priority debts apply to me including the needed to max my credit card/overdraft going over the limit to to be able to afford to live and seeking further credit.

 

This was put to nationwide but they wouldnt even aknolwedge my circumstances.

 

Thanks

Did you include photocopies of arrears letters with the original request?

[Jamesx81x]

No i detailed my situation and sent them a income/expenditure form detailing my financial situation. I included that i would provide them with evidence to each of my claims should they request it but they didnt want to know simply saying the charges had not caused me financial hardhsip.

[yourbank]

To clarify, you have priority debt arrears on Council tax, mortgage/rent and utilities?

[Jamesx81x]

Yes, witha noticeseeking possession issued on the grounds that if my arrears meet a certain limit again they will take court action and the threat of court action for my gas arrears. Along with the fact i have more going out than coming in how am i supposed to meet these repayments?

 

Nationwide did not choose to acknowledge this and are making their own crap up as they go along. About time they et brought in line for thes kind of behaviour.

[WOOD73]

I had the same crap respons from them as you, I wasnt in hardship when the charges were taken etc.

The bad news I'm afraid is that the FOS agreed with them, and although it was acknowleged I am in hardship, the bank actually have to do nothing more than accept your plea of hardship, once they have, they have fulfilled their obligation under the waiver.

I cant wait for the day they lose and have to pay up all the money with interest! with a bit of luck it'll put them in hardship.

[Jamesx81x]

No where in the FSA's waiver does it say the charges have to cause you the hardship so they are not meeting the FSA's guidleines by saying so.

 

If the FOS agree with them then that is wrong. As long as they agree i am in hardship then i will take them to court and ask them to elaborate on their statement and ask them where the FSA state this. Remember hardship claims cannot be stayed.

 

Dont just leave it it at the FOS stage or they will get away with it. Fight the morons.

[yourbank]

No where in the FSA's waiver does it say the charges have to cause you the hardship so they are not meeting the FSA's guidleines by saying so.

 

If the FOS agree with them then that is wrong. As long as they agree i am in hardship then i will take them to court and ask them to elaborate on their statement and ask them where the FSA state this. Remember hardship claims cannot be stayed.

 

Dont just leave it it at the FOS stage or they will get away with it. Fight the morons.

 

What has happened with the possession notice which you mentioned on end of April?

[Jamesx81x]

They have put it on hold providing i maintain payments but have said if it goes over again they will start court proceedings straight away.

 

Thing is we are still struggling to meet the payments.

[yourbank]

They have put it on hold providing i maintain payments but have said if it goes over again they will start court proceedings straight away.

 

Thing is we are still struggling to meet the payments.

I think if you haven't done so already, to formally go through the FOS complaints process.

I would include all things including utilities arrears as well(with the FOS that is)

and include an Income and Expenditure form.

an example is below

Money Advice Trust - The CFS budget forms and preparing a financial statement

[WOOD73]

No where in the FSA's waiver does it say the charges have to cause you the hardship so they are not meeting the FSA's guidleines by saying so.

 

If the FOS agree with them then that is wrong. As long as they agree i am in hardship then i will take them to court and ask them to elaborate on their statement and ask them where the FSA state this. Remember hardship claims cannot be stayed.

 

Dont just leave it it at the FOS stage or they will get away with it. Fight the morons.

 

You can apply to have a stay lifted due to hardship, but success varies widely from court to court, being in hardship dosent mean a stay will be lifted or that a case will not be stayed.

 

Like I said, the waiver say's they must look into your hardship claim, and if you are found to be in hardship they should consider your OR help to not put you in further hardship (i.e. waiving any future or pending charges) it does not say they must pay out your claim either in full or part.

The problem is the wording is open to interpretation and the banks have got high paid solicitors looking for every loophole to not pay out.

[Jamesx81x]

Totally agree with you, they will look for anway possible not to help the people who need it most. If they only understand how much the charges which is all my money would help me pay. It would clear my rent arrears and half of my gas thats how much it would help.

 

Still waiting for the FOS so just see what they have to say and take it from there.

[Jamesx81x]

Received reply from FOS today basically stating that they would not be pursuing my complaint further because as i do not hold an account with Nationwide anymore the bank did not have to do anything.

 

They havent even made nationwide acknowledge i am in Hardship even after proving that i am.

 

I am now considering court action and would appreciate some help with the POC's. My current situation is not good and not getting any better. the return of what is rightfully mine would almost certainly alleviate he majority of our problems.

 

I am aslo wanting the default removed too which was caused by these charges as this alone is causing me problems by been on my file.

 

Thanks and appreciate any help.

 

James

[yourbank]

Received reply from FOS today basically stating that they would not be pursuing my complaint further because as i do not hold an account with Nationwide anymore the bank did not have to do anything.

 

They havent even made nationwide acknowledge i am in Hardship even after proving that i am.

 

I am now considering court action and would appreciate some help with the POC's. My current situation is not good and not getting any better. the return of what is rightfully mine would almost certainly alleviate he majority of our problems.

 

I am aslo wanting the default removed too which was caused by these charges as this alone is causing me problems by been on my file.

 

Thanks and appreciate any help.

 

James

 

James, if the account is shut then there is no current financial hardship since you bank elsewhere, is that right?

When did the account get closed or was closed?

[Jamesx81x]

Yes the account is closed and i bank with a new bank.

 

It was used in 2006 and closed in 2007 with over £800 in bank charges on it and a default for the trouble.

 

Nationwide and the FOS both state that as i do not currently bank with them then there is nothing they have to do and the charges have not led to my current situation.

 

My case all along is i am in severe financial hardship and although i understand they do not have to issue a refund under the waiver the total amount of charges would seriously releive the pressure me and my wife are under if they chose to refund it.

 

Thats why i am now considering court action even though probably unsucessful i feel i need to give it a shot. The FOS have been completely useless and offered no help at all.

 

Thanks

[yourbank]

Yes the account is closed and i bank with a new bank.

 

It was used in 2006 and closed in 2007 with over £800 in bank charges on it and a default for the trouble.

 

Nationwide and the FOS both state that as i do not currently bank with them then there is nothing they have to do and the charges have not led to my current situation.

 

My case all along is i am in severe financial hardship and although i understand they do not have to issue a refund under the waiver the total amount of charges would seriously releive the pressure me and my wife are under if they chose to refund it.

 

Thats why i am now considering court action even though probably unsucessful i feel i need to give it a shot. The FOS have been completely useless and offered no help at all.

 

Thanks

 

What caused the drop in income(lifestyle event)?

What charges caused the arrears? Which account?

Do you have credit card charges that you could reclaim to ease the pressure? You can claim ALL the charges on the credit card?

[greendollar]

Nationwide have been fobbing me off since 21st july when I first complained about the charges being taken out of my benefits,was supposed to get a response on the 23rd Aug but nothing,fired off another letter stating that I would complain to the FOS,received letter stating they had till 4th of Oct to respond...still nothing.

These people are supposed to deal with hardship speedily and sympathetically with such cases.Do they?.....do they hell.

[Jamesx81x]

Wouldnt bother with FOS, they about as much use as a bike with no wheels!