Current account closed and default implemented without any correspondence sent to correct address

[mistercoop]

my high street bank have closed my student current account "due to dormancy" and placed a default on my credit file without any correspondence being sent to the correct address.

 

I downloaded and sent a 'change in personal details' form to my local branch informing them of a change in address. However, they did not update my details.

 

I still have the PDF form saved, clearly showing the 'last modified' date as significantly before the letters carried on being sent to my old address. I also still have proof of postage from the post office which has the recipient's address (my branch) and the date of posting on.

 

I found out about a problem with my account via not being able log into my online bank account. Following this, I discovered they still had my old address on file, despite me updating it months earlier. I complained to say that they had been sending any letters to the incorrect address. The letters sent to the wrong address apparantly included numerous (~10) warnings of account closure etc...

I did not know there was a problem with the account as I was well within my overdraft limit and didnt receive any of the letters warning me of account closure.

 

If I had received any of these letters I would have responded appropriately and paid some money into the account. However they were sent to the incorrect address.

 

This was the banks written response to my complaint which does not seem to properly address my main complaint that I never received any of the letters because they were sent to the wrong address:

 

" Dear Mr. XXXX

Thank you for your patience while I have reviewed your complaint. I apologise for the delay.

Following my review, I am sorry I am unable to agree with your complaint about reinstating your bank account and removing the default from your credit file. The default was rightfully applied due to arrears on the account. You opened your account as a Student Account and you signed in 2010 to confirm you had received the terms and conditions of the account. The terms and conditions of your account state "you must use your student account as your main current account by depositing at least £750 every 6 months and making a minimum of 3 debit transactions each month". Because you have not maintained your account in this way it has rightly triggered as dormant, and as we have received no contact or repayment proposals from you, we have followed bank policy in applying a default and transferring your account to recoveries' control.

 

Whilst I appreciate the concern regarding your address, you acknowledged receipt of the first dormancy letter which confirmed the way you needed to manage the account. The account was credited in March 2011 and whilst you continued to debit the account, no further credits were made until August 2012.

 

I understand that this in not a decision you were hoping for, but as the terms and conditions of the account were not followed I am not able to reinstate your bank account nor remove the default from your credit file.

 

While I am unable to agree with your request to reinstate the account, as a gesture of goodwill I will write off the remaining balance of £24.08. This means the bank account will now be closed so if you have not done so you need to seek alternative banking elsewhere.

 

I believe I have resolved your complaint satisfactorily following my review.

 

If you are unhappy with the decision and want to take it further, you can get in touch with the financial ombudsman service.. If you decide to refer your complaint to the ombudsman, you should do so by 15th March 2013 as they may not consider your complaint after that time.

 

Yours Sincerely,

Mrs XXXXX XXXXXXXXXX

Expert Complaints Handler "

 

The part where she says that I "acknowledged receipt of the first dormancy letter" refers to the last letter which the bank sent to my correct address. This letter did not explicitly warn me my account would be closed. It stated: "We've noticed you haven't paid any money into your account recently. It's important that you use your account regularly, particularly as we've given you an overdraft facility. When we first gave you your overdraft facility we expected you to regularly pay money into the account. .... (the rest of the letter only discussed payment methods, helplines etc.)"

 

I understand that I did not follow the terms and conditions of the account, however, the bank did not send the any written warnings or account closure or defaults to the correct address.

 

What position am I in?

Is this worth fighting?? If so, how?

Do I say they never sent me the default notice?

Any help much appreciated!!

[unclebulgaria67]

You could always write back, saying that you are unhappy with the response to your complaint. Give the reasons for this. Tell them that you now want to proceed to the FOS and if they cannot resolve to your satisfaction now, that you require them to issue a final response without delay. Because the bank would get charged a £500 case fee by the FOS if you went to them, the bank might have another look at the complaint and perhaps show a little more sympathy. Many banks complaints departments work on the basis that customers won't come back to them after a first complaint is rejected and they won't take their complaint to the FOS. If you respond in the way suggested, you may get a different response.

[citizenB]

I think the investigation fee now charged to banks by the FOS is now £850

[unclebulgaria67]

I think the investigation fee now charged to banks by the FOS is now £850 [/quote

 

Nice ! The FOS has seen a huge rise in the number of complaints in the last few years, so need the extra money to operate. At some point, I think they will try to renegotiate how the FOS is funded. Perhaps a fixed fee, based on the number of customers that a company has. Also I can see a tightening as to what complaints the FOS will look at, with some complaints rejected at the first hurdle.