FOS Bank charges default

[frogdoctor]

Hi

 

Had (after 2 years) final adjudication on complaint about default registered by Santander (as usual) on penalty charges whilst awaiting Supreme court verdict. As I had been previously warned by a now ex caseworker, the service has a policy of not overturning defaults and my experience seems to verify this.

 

I was claiming using court references and clause 13.6 of banking code of conduct (Defaults only added when there is no existing dispute on account)

 

The bank claimed that the dispute ended on the day they rejected my original claim, and did not regard my 2 and a half year court case with them constituted a dispute. Incredibly the FOS upheld this.

 

The FOS also claimed that 13.6 was ambiguous and that they probably meant to say that it only applied to cases of fraud. I`m appalled the ombudsman can simply add his own caveats to a clearly stated freely given commitment in order to find in favour of his client.

 

The fact that the bank had lost all litigation before the SC verdict, and never successfully defended their Terms/Conditions/ or Charges was, in the FOS`s view no justification for withholding payment until due legal process was complete.

 

Hope this is helpful to anyone in same situation.

Edited July 15, 2011 by frogdoctor