Unhappy with payout from financial hardship claim.

[belgarion26]

Hello all.

I recently applied to the A&L for a refund of bank charges, stating that I was suffering financial hardship due to losing my job in November. I filled in the relevant expenditure forms that they sent through, and waited (despite 2 phone calls to chase them up) around 6wks for my reply.

My story

After losing my job, the charges on my account went crazy for a month or so, while I struggled to stay afloat. When I stopped using my account in January, it had a balance of -£585. My total reclaim was for £1359 + £89.09 interest. No new transactions were placed on the account, yet they've been sending me letters asking for the £835 that was owed on my account....?? I wrote back, saying that I would repay any amount I owe, once they pay up what they owe me.

I got my answer yesterday, stating -

"We have thoroughly investigated your request and are satisfied that the fees to which you refer have been raised correctly, in accordance with our Current Account Structure. However, we have taken into account your personal circumstances and have agreed to refund fees totalling £870, which has now been credited to your account.

We have refunded all unauthorised overdrawing fees since your change in circumstances and your account is now in credit."

I can't even get my hands on £100 of it though, because they've paid it into the account to ensure that my debt to them is paid first.

So, I figure that, without interest, they still owe me around £739. I immediately phoned them to complain, and ask for the rest of the money. The guy placed it all on a customer complaint form, and said somebody should be in touch within a few days, which probably means at least 2wks!

What should my next step be, good people? I greatly appreciate any input.

[chubbas dad]

i would write a snotty letter saying i dont accept their offer of settlement and will be contacting the fsa.but thats me.

someone will help im sure. just keep posting and bump yourself to the top. good luck.

[yourbank]

Originally Posted by belgarion26

Hello all.

I recently applied to the A&L for a refund of bank charges, stating that I was suffering financial hardship due to losing my job in November. I filled in the relevant expenditure forms that they sent through, and waited (despite 2 phone calls to chase them up) around 6wks for my reply.

My story

After losing my job, the charges on my account went crazy for a month or so, while I struggled to stay afloat. When I stopped using my account in January, it had a balance of -£585. My total reclaim was for £1359 + £89.09 interest. No new transactions were placed on the account, yet they've been sending me letters asking for the £835 that was owed on my account....?? I wrote back, saying that I would repay any amount I owe, once they pay up what they owe me.

I got my answer yesterday, stating -

"We have thoroughly investigated your request and are satisfied that the fees to which you refer have been raised correctly, in accordance with our Current Account Structure. However, we have taken into account your personal circumstances and have agreed to refund fees totalling £870, which has now been credited to your account.

We have refunded all unauthorised overdrawing fees since your change in circumstances and your account is now in credit."

I can't even get my hands on £100 of it though, because they've paid it into the account to ensure that my debt to them is paid first.

So, I figure that, without interest, they still owe me around £739. I immediately phoned them to complain, and ask for the rest of the money. The guy placed it all on a customer complaint form, and said somebody should be in touch within a few days, which probably means at least 2wks!

What should my next step be, good people? I greatly appreciate any input.

Do you have any priority debt arrears(mortgage/rent, council tax, utilities)?
If you do then I would negotiate the amount based on the fact that your priority debtors have been give £0.00.
Furthermore, A&L have made themselves priority debtors which they are not. You need to be aware that any bank charges refunded are not in full and final settlement of any claim as they are not permitted to do so.
If they do not or will not negotiate further and you have priority debt arrears, the angle I would take with the fos is (1) the amount offered doesn't clear the arrears
and (2) the bank have made themselves priority debtors even though your other priority debtors are still owed money and your situation is not substantially better off as a result.

[bizzib]

Originally Posted by yourbank

Do you have any priority debt arrears(mortgage/rent, council tax, utilities)?
If you do then I would negotiate the amount based on the fact that your priority debtors have been give £0.00.
Furthermore, A&L have made themselves priority debtors which they are not. You need to be aware that any bank charges refunded are not in full and final settlement of any claim as they are not permitted to do so.
If they do not or will not negotiate further and you have priority debt arrears, the angle I would take with the fos is (1) the amount offered doesn't clear the arrears
and (2) the bank have made themselves priority debtors even though your other priority debtors are still owed money and your situation is not substantially better off as a result.

This is great... I am in the same situation although, i have yet to hear from A& L but I filled put the form and advised I owed over £1,000 in council tax, so will see what they come back with. My account with them is closed if I did owe anything it would only be less than £50, but they did tell me the account was closed with a zero balance, They can't apply the payment to a closed account can they?