FOS backing Newcastle BS

[simonmcl]

I lodged a complaint with the FOS after Newcastle BS (NBS)did not honour payments on a prepaid credit card issued to me by my company. The reason NBS gave me was that the payment was £2 over my available balance. I checked the on line statement and it clearly showed that the last time I used the card, three moths earlier, it left a balance available of £197.50. Before issuing the payment I checked again and found it exactly the same as three months ago, £197.50 I issued this amount in payment and NBS refused it. NBS stated that there were 2 £1 'security' transaction which reduced my balance to £195.50. I checked with the retailer who took these ;security transactions' and they confirmed that they took the payments and refunded them back to the account 2 minutes later. That was over three months prior to this transaction.

 

NBS did not note this on the visible statement I had access to and did not credit the money back until I contacted them. The FOS decided that the T&Cs stated that 'recent transactions may impact on available credit' which is true but I argued that these 'recent transactions' are ones I KNEW about not ones happening behind the scenes. I also pointed out that the T&Cs also stated that if payment were made which took me over the available credit then NBS reserve the right to demand payment in full within 14 days' The FOS strangely seemed to ignore this and advised that I would have been aware of the transaction. When I asked the FOS how this would represent itself they blatantly told me that it was on a 'back office system to which customers have no access' but I should have looked at my statement which showed these transaction. I asked them to highlight these transactions on the stement available to me and surprisingly they could not but yet the FOS seem to think that it is my fault for not chasing NBS earlier for transactions I knew nothing about?

 

To add insult to injury, NBS closed the account without notifying me and several months later and several months after that accepted a credit back to the card from a retailer to whom I had returned goods. On contacting NBS I was informed that I could not have the money held by them as the account was closed and I should go back to my employer. I asked if my employer had been sent the money and was advised no. I wrote to the FOS to add to the original complaint just to be told that I need to lodge NEW complaint. I did this and got an email stating that both complaints have been merged. Talk about the left hand not knowing what the right is doing. The FOS is a joke and they are only there to serve the interest of banks.

 

I may be missing something here, so I will ask for any advice you may be able to give... How can it be deemed MY fault for not checking a back office system to which I have no access and how is it MY fault that I issued payment for the full available balance as displayed for over three months without knowing that NBS are grossly inefficient and cannot process automatic payments? Also why is it MY responsibility to chase my employer for funds held by NBS when NBS have never sent those funds to them? I think the answer lies in the furry little non reality world that is the FOS.

[rebel11]

Hi simon

 

Unforetunately the FOS aren't paid to think, they will always go along with the B/S T & C's. You could appeal the FOS's decision.

[simonmcl]

Hi Rebel1 - Thanks for that ... I am aware I can appeal and it is now at the stage where it is going to the ombudsman rather than an adjudicator. I did find out that the original case was closed early as the adjudicator 'had to clear her workload due to going on maternity leave'. My experience shows that the FOS should invest any money they have in teaching their adjudicators to read. Oh well I will wait and see what they say and post the replies here.

[rebel11]

The thing is that it's costing Newcastle Building Society £450 plus which they pay to the FOS to look into your complaint.

[lenny100]

dont hold your breath though it will be over a year before your case gets to somebody to make a final ruleing

[AuntieP]

If the Adjudicator closed the case because she was going on maternity leave, I suggest you complain about this to the Independent Assessor. She won't look at the merits of the case, but she may find a breach of FOS "service standards". Surely the case should have been passed to another Adjudicator rather than closed in haste.