Co-op charges - help needed

[moneydragon]

Hi

 

A few years ago I was in receipt of benefits and co-op bank applied charges to my account

and causing me even more hardship. I believe that this was unlawful,

 

I sent them a letter enclosing a breakdown of charges totalling £800+

requesting that they paid me these charges back.

 

I have toady received a reply refusing to reimburse me and the following is their reason:

 

We are satisfied that our charges are lawful and fair and directly reflect the costs we incur. Please be assured that we regularly review these, as do the Financial Conduct Authority.

 

Whilst we have debited charges from your account, we have neither an assignment of nor a charge on your benefit payments themselves. If an item is returned unpaid or the balance is taken informally overdrawn, charges are applied as stated in the T&C of your account. Such charges are applicable regardless of the source of credits to your account.

 

Please be aware that the FOS have reviewed complaints of this nature and advised we are not obliged to refund charges even in instances where a customer is experiencing financial hardship. This is providing that the charges were applied in line with the T&C of the account.

 

Having reviewed your account history and T&C, I can confirm that the charges applied to your account were applied correctly. As such these will not be refunded to you and do still stand.

 

Would appreciate any advice on what my next step would be:-)

[dx100uk]

did you refer to BCOBS?

and when were these charges please

[moneydragon]

Thanks for your reply dx100uk

The following is part of what I put in my request for repayment, I did not actually state BCOBS but that I believed the charges to be unlawful:

 

Under the Unfair Terms in Consumer Contracts Regulations 1999charges must reflect administration costs and cannot be punitive. I believethat the charges shown on the attached sheet are unlawful as they do notreflect the true cost of going into an unauthorised overdraft.

I was also in receipt of housingbenefit up to November 2013 therefore, I believe that not one chargeshould have been administered.

[rebel11]

Hi Moneydragon

 

The following doesn't sound quite right:-

 

'Please be aware that the fos have reviewed complaints of this nature and advised we are not obliged to refund charges even in instances where a customer is experiencing financial hardship. This is providing that the charges were applied in line with the T&C of the account.'

 

What the FOS actually say is:-

 

http://www.financial-ombudsman.org.uk/faq/bank-charges.html

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/financial-hardship-unaffordable-lending.htm

 

The BCOBS principals:-

 

Customers' interests - A firm must pay due regard to the interests of its customers and treat them fairly.

 

Communications with clients – A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.

[moneydragon]

Thank you rebel11

 

Yes that also confused me as I thought what co-op state is in contradiction to FOS.

 

Do I go back to co-op and if so how or do I now proceed to the next level?

[Klandestine]

Hi Moneydragon

 

The following doesn't sound quite right:-

 

'Please be aware that the fos have reviewed complaints of this nature and advised we are not obliged to refund charges even in instances where a customer is experiencing financial hardship. This is providing that the charges were applied in line with the T&C of the account.'

 

What the FOS actually say is:-

 

http://www.financial-ombudsman.org.uk/faq/bank-charges.html

 

http://www.financial-ombudsman.org.uk/publications/technical_notes/financial-hardship-unaffordable-lending.htm

 

The BCOBS principals:-

 

Customers' interests - A firm must pay due regard to the interests of its customers and treat them fairly.

 

Communications with clients – A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading.

 

Thank you rebel11

 

Yes that also confused me as I thought what co-op state is in contradiction to FOS.

 

Do I go back to co-op and if so how or do I now proceed to the next level?

 

It's not contradictory at all.

 

The bank is not at all obliged to refund charges if you are experiencing financial hardship. There are also other ways of dealing with the problem.

 

They also only need to take into account CURRENT financial hardship. So trying to get historic charges refunded on this basis is unlikely to be successful.

[rebel11]

It's contradictory on many fronts.

 

It's not contradictory at all.

 

The bank is not at all obliged to refund charges if you are experiencing financial hardship. There are also other ways of dealing with the problem.

 

They also only need to take into account CURRENT financial hardship. So trying to get historic charges refunded on this basis is unlikely to be successful.

[rebel11]

Go back to the Co-op, explain that they have stated the following:-

'Please be aware that the fos have reviewed complaints of this nature and advised we are not obliged to refund charges even in instances where a customer is experiencing financial hardship. This is providing that the charges were applied in line with the T&C of the account.'

Explain that the CO-OP has signed up to the Banking Conduct of Business Sourcebook. The CO-OP are regulated by the Financial Conduct Authority, that the CO-OP has to adhere to a set of legally binding key principles laid down in the Banking Conduct of Business Sourcebook (2009).

Explain that what they have stated goes against those principals.

Thank you rebel11

 

Yes that also confused me as I thought what co-op state is in contradiction to FOS.

 

Do I go back to co-op and if so how or do I now proceed to the next level?

[Klandestine]

It's contradictory on many fronts.

 

Please explain how?

 

That link from the FOS which you posted clearly states that:

"If you are in genuine financial hardship, this does not affect the legality of the charges. But it is relevant to how your bank or building society treats the amount you owe"

 

The FOS expects them to "deal positively and sympathetically with a consumer in financial hardship". This does NOT necessarily mean refunding charges.