Do you need a parachute account?

[chancer]

Hi folks,

 

Just wondering if anyone can answer the below query?

Hi Perseus & all,

 

I was at a party last night and one of the guest works in a bank. This person told me that since they have all the charges kept on a data base that you only need to write a letter (kind of like the dpa letter) just requesting all charges and etc back since you joined.

Just double checking if this is true? :-?

[Perseus]

Hi chancer

 

Yes - it's entirely possible that the banking organisations keep a separate database with all charges collected, and in a respectful and law conforming society they should return them.

The legal process that's followed by submitting the Subject Access Request should draw out all these charges, but the banks are well aware of the 'Statute of Limitations Act'. This basically limits their requirement, and your right to request information that is older than 6 years. There are other arguements and possible statutes that would force them in theory which for some - have been successful. In reality, the limitations act is a buffer they use to limit liability and the chance of previous charges being re-claimed.

 

In short - the DPA you quote is the right way to start that process of getting the info from their 'database'.

 

Regards

Perseus

[chancer]

Thanks Perseus......I'll just send the dpa letter so and take it from there. I was hoping for a quick win but no harm. ;-)

Hi chancer

 

Yes - it's entirely possible that the banking organisations keep a separate database with all charges collected, and in a respectful and law conforming society they should return them.

The legal process that's followed by submitting the Subject Access Request should draw out all these charges, but the banks are well aware of the 'Statute of Limitations Act'. This basically limits their requirement, and your right to request information that is older than 6 years. There are other arguements and possible statutes that would force them in theory which for some - have been successful. In reality, the limitations act is a buffer they use to limit liability and the chance of previous charges being re-claimed.

 

In short - the DPA you quote is the right way to start that process of getting the info from their 'database'.

 

Regards

Perseus

[Firecracker]

Hi there

 

Just thought I'd flag something up here, not sure if this has been mentioned before. When I started my claim against Barclays ages ago I opened a parachute account with A&L, just in case Barclays closed my account. However, things have dragged on a lot longer than I thought and now A&L have charged me a fiver for not using the account!!

 

Just something to bear in mind. I guess as the banks are dragging things out for so long this could happen to a lot of people?

[Perseus]

hi Firecracker

 

This doesn't surprise me one bit.

no doubt they've covered their asses with the charge in the T&C's, and I suppose they can offset it against the set up of a new account that has not been active.

I believe there will be more banks starting to enforce activity charges soon - they have to find some way or re-cooping their losses...

 

I wouldn't start chasing them for a refund yet - they aren't to customer friendly at that, and blows your parachute!

Is there any chance you could stick a tenner in a month - just to keep it ticking over?

 

Pers

[chancer]

Hi Firecracker,

 

I did read in a previous tread from ages ago that they cannot close your account due to you claiming against them. If I come accross it I'll post on here for you.

Hi there

 

Just thought I'd flag something up here, not sure if this has been mentioned before. When I started my claim against Barclays ages ago I opened a parachute account with A&L, just in case Barclays closed my account. However, things have dragged on a lot longer than I thought and now A&L have charged me a fiver for not using the account!!

 

Just something to bear in mind. I guess as the banks are dragging things out for so long this could happen to a lot of people?

[Firecracker]

Pers - I have used the account a couple of times, I think they want my salary to go into it though, which is fair enough. The fee is for 'underfunding'.

 

I just thought as all the advice pretty much starts off with 'open an account somewhere else in case yours gets closed' it's worth taking into account that this may happen. As I am two grand overdrawn with B'clays I can't just pay my salary into another account to keep them happy - bit of a double edged sword really :/

[Perseus]

Understand that, and it's useful info to keep a perspective when parachute accounts are opened and left dormant - the new banks will get a little cheesed off waiting to see if you are going to use it or not.

 

Maybe by physically drawing some cash out of Barclays, and depositing it into the new account, it will keep them happier... if it's not needed after all, it's a way of saving too!

 

Pers

[lou5357]

I went into the Halifax yesterday and promtly told that as I don't have 'a proper current account' (sic) and only a cashcard account, the Halifax will be changing the way that it deals with people with either an easycash or cashcard account. It'll mean, the cashier said, I will no longer be able to use counter facilities. Any idea if other banks/building societies are following suit? I haven't opened a parachute account yet as I've had to apply to the DVLA for a duplicate licence - it's the only form of ID that I have. When choosing another bank, I want to be able to use counter facilities like everyone else. I'm really angry with them and feel like a second class citizen.

[Pacm0n]

Hi all, newbie here

 

After reading through this site I thought I would give it a go at reclaiming my bank charges. I've just sent by DPA to Lloyd TSB.

 

I was reading up about parachute accounts and just wondered if it was really necessary as I have a really bad credit history, no CCJ's just a lot of missed payments e.t.c on credit cards, direct debits and loans. I'm just thinking if I applied to a new bank they would take one look at my history and refuse my application?

 

Any advise would be very much appreciated.

[Perseus]

I went into the Halifax yesterday and promtly told that as I don't have 'a proper current account' (sic) and only a cashcard account, the Halifax will be changing the way that it deals with people with either an easycash or cashcard account. It'll mean, the cashier said, I will no longer be able to use counter facilities. Any idea if other banks/building societies are following suit? I haven't opened a parachute account yet as I've had to apply to the DVLA for a duplicate licence - it's the only form of ID that I have. When choosing another bank, I want to be able to use counter facilities like everyone else. I'm really angry with them and feel like a second class citizen.

 

Haven't heard of that before...

Maybe you could ask them when , and on what notice to you will their services be withdrawn - ask for the erms and Conditions that state their withdrawing those services. - Thats terrible.

 

Hi all, newbie here

 

After reading through this site I thought I would give it a go at reclaiming my bank charges. I've just sent by Data Protection Act to Lloyd TSB.

 

I was reading up about parachute accounts and just wondered if it was really necessary as I have a really bad credit history, no CCJ's just a lot of missed payments e.t.c on credit cards, direct debits and loans. I'm just thinking if I applied to a new bank they would take one look at my history and refuse my application?

 

Any advise would be very much appreciated.

Some banks are happy enough to take in customers with adverse credit.

Citibank, Natwest for 2.

When (if) you go to another bank to see if they'll take you in - ask them when they do the application scoring through the credit reference agencies, if it will be registered as a seaarch for credit on your file. If you're not applying for an overdraft or credit card etc, ask them for a quotation search. It leaves no footprints on the CRA, and doesn't affect your history so to speak.

 

Perseus

[DiXiE1962]

Hi all, newbie here

 

I was reading up about parachute accounts and just wondered if it was really necessary .....

 

Any advise would be very much appreciated.

 

One of the things you will notice as you go through the site is that parachute accounts and various other measures are suggested so that you are covered IF the bank plays hardball.

I personally know of many cases where your original bank doesn't close the acount, but have also seen cases on here where they do.

My suggestion would be to try to open an account IN CASE and use it as a savings account or close it again if all goes well.

[sadie89]

Hi,

I've recently taken Alliance Leicester through the small claims court and they have written back saying they will defend the claim. I then received a letter from them offering me £388.00 which would include the court fee. (I claimed £649.) A&L say that "this reflects the difference between the amount of charges for unpaid items actually applied to your account & the amount of charges that would have been applied to the account if the charge had been £12.00.". I am now not sure what to do. I am afraid they will close my bank account (I am not now overdrawn but I do have plenty of Direct Debits & Standing orders.)

 

In another para of the letter they state that "you may have seen media reports that some banks have considered closing certain customers accounts where the customer has complained about bank charges. We would like to re-assure you that if you do accept out offer of settlement we will continue to operate your account. We would only do so on the basis that you accept the Terms & Conditions of your account previously notified to you and that charges will be applied in accordance with our current charging policy." Do you think that this means:- eg If I don't accept they will close my account?? I could really do with some help from you guys on what I should do. I don't like the almost veiled underlying threat being posed here, that in itself makes me really angry however I am a bit of a wimp on the side and think for an easy life shd I just accept the part payment and think well at least I am £388.00 better off now than I was. PLEASE HELP GUYS!

[Cornucopia]

Hi,

I've recently taken Alliance Leicester through the small claims court and they have written back saying they will defend the claim. I then received a letter from them offering me £388.00 which would include the court fee. (I claimed £649.) A&L say that "this reflects the difference between the amount of charges for unpaid items actually applied to your account & the amount of charges that would have been applied to the account if the charge had been £12.00.". I am now not sure what to do. I am afraid they will close my bank account (I am not now overdrawn but I do have plenty of Direct Debits & Standing orders.)

 

In another para of the letter they state that "you may have seen media reports that some banks have considered closing certain customers accounts where the customer has complained about bank charges. We would like to re-assure you that if you do accept out offer of settlement we will continue to operate your account. We would only do so on the basis that you accept the Terms & Conditions of your account previously notified to you and that charges will be applied in accordance with our current charging policy." Do you think that this means:- eg If I don't accept they will close my account?? I could really do with some help from you guys on what I should do. I don't like the almost veiled underlying threat being posed here, that in itself makes me really angry however I am a bit of a wimp on the side and think for an easy life shd I just accept the part payment and think well at least I am £388.00 better off now than I was. PLEASE HELP GUYS!

 

I would seriously tell them to get stuffed! I am pretty sure they recently had to issue an apology for writing a letter like this, if I were you I would get in touch with the Office of Fair Trading, Trading Standards and the Financial Ombudsman Services and report this veiled threat! This does not conform with the Banking Code. I would also write to them and inform them, quite clearly, that despite of their veiled threat, you will be continuing with your claim and reporting their behaviour to the relevant authorities.

 

Continue with your claim, as planned. You must not settle for half of your claim because they have threatened you - this is exactly the result they want! Can you imagine if everybody backed off, they would be laughing their heads off!

 

Have you opened an account elsewhere? If you are concerned about your credit history, you can open a basic bank account - the NatWest Step Account can be opened online, for example. To be honest, this would make me want to take my business elsewhere in any event! It is outrageous!

 

Good luck and keep us posted!

 

Regards,

 

Corn x:)

[classylady18]

Hi, i havent posted on here so im hoping i've posted in the right place!

 

I'm currently pursuing Barclays for £2695 of bank charges so a couple of weeks ago i decided to open a parachute account with NatWest and applied for the Step Account.

 

Within a day of applying online I recieved a letter from them telling me my application had been processed and welcoming me to Natwest. It also showed me my account number / sort code etc, all i needed to do was sign the form and send it back which i did straightaway

 

2 days later i had another letter from Natwest welcoming me to their online banking service - great i thought... i'll change my bank details tomorrow with my employer so my salary can be paid into my new account.

 

However...the next morning i had two letters from NatWest ;

 

1. Stating that my application for a Step account was unsuccessful as i didnt meet their critieria and a leaflet about credit scoring

 

2. A statement of my account showing that i had opened the account on 4th June, then it said account closed on the 5th June...

 

I was really confused because surely they cant open and account send me all the online banking stuff and then close it ?!!?

 

Has anyone else had this problem? Im guessing its because i am claiming charges from Barclays??!

 

Im not sure what else to do now as i still want another account that offers a debit card.....any ideas guys?

 

Thanks in advance...

 

Classylady18 x

[MyWilf]

Hello everyone, newbie here too, just to say keep up the good work and i look forward to the fight,,,,,,

 

Regards MyWilf

[sunn1]

Sent my SAR letter by recorded delivery on 16.04.07 and heard nothing, they also did not cash my cheque.

Then on 13.06.07 received a reply from 'Data Subject Access Request Team' which ia a simple list of charges applied and dates going back to April 2001. They also wrote in their covering letter that there was no charge and the cheque had been cancelled.!

 

The problem I now have is when completing the spreadsheet I've downloaded I do not have the interest charged (they did not send statements). Should I simply continue with my preliminary approach letter without including any interest.?

Can anyone help.. please

[darling1]

Ref Parachute accounts - I notice that Barclays are on the list of banks post #1 - they turned us down flat and gave us the phone numbers to check our credit rating! - This is really begining to bug us, Tesco Finance have given us a very bad credit rating about 2 1/2 years ago, due to redundancy we got behind in repayments and after many many many upsetting calls from them they gave our debt to a debt recovery agent, we had just moved house so we used a bit of capital to pay them off. Tesco were aware of our situation , and would not help - or wait for the money to come through. Anyhow If you would like a lot of stress Tesco Finance is the way to go - as they say "every little helps" -

The point I am making is if you have past debts (or maybe have just won a claim for unfair bank charges!! ) Barclays are not worth trying!

Darling1

[kermit200376]

Can I suggest Citibank Access account too. Debit card and chequebook and seems friendly to bad credit people like me!

[vandermerwe]

Hi Classylady.

 

Are you sure you applied for the most basic account from Barclays? It would have a 'brand name'.

 

Among my philosophies are:

 

a) Bankers are w*****s, er wallies for the sensitive ones;

 

b) I believe in a belt and braces.

 

I applied for a Co-op Cashminder account by telephone, which was approved in 'principle' and am currently awaiting the paperwork. I was advised to do so by national debtline.

 

Van

[Givuzagame]

I asked for a business account at Royal bank of Scotland - the bank account was refused, even that I have no debts, I work properly with my company and I work as a journalist and have no bankruptcy or other bad debts record except this HSBC.

 

Any ideas like above for parachute business accounts?

 

Is it legal to run a business through a personal account if all records kept?

[vandermerwe]

Have had my Cashminder account with the Co-op for a while now, but find the Electron card is occasionally refused.

 

Is it regarded by some as a the "poor man's" card even though it caries the Visa logo?

 

Van

[Guest joe.inom]

About my know parachute account of my friend , he had to pay penalty charges because he had not certified correctly before that why is he needing this parachute account and parachute account is just a fallback in case the bank closes your current account.

what ever he got your of this.

Edited August 20, 2008 by joe.inom

[Guest joe.inom]

He made account from Motley Fool , i am thinking to make one soon , but still need suggestions.

[Elenathion]

Is it possible to update the initial post in this thread?

 

I just opened a parachute account with Lloyds and was given a visa debit card. The only limitation on it is that you have to use a Lloyds cash machine to withdraw money but in can be used in shops and online without any problems.