Hey, For anyone reading this, i got this information regarding
hardship
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bank charges Hardship: How to reclaim NOW, inc free template letters...
This, of course, is the nub of the article. To have your case heard, you need to fulfil the Financial Services Authority’s official definition:
“A complainant is considered to be in financial difficulty when his or her income is insufficient to cover reasonable living expenses and meet financial commitments as they become due.”
This means when you can’t afford commitments such as utility bills, rent and council tax, or if you’re struggling to repay debts such as your mortgage or credit card.
That definition is quite general. But if it sounds like it applies, to find out if you fit one of the FSA’s specific examples, it’s important to go through its official hardship guidance below. Yet sometimes it’s not exactly in plain English, so we’ve added a ‘translation’ to each.
Are items repeatedly being returned unpaid due to lack of available funds?
Translation: Do your payments regularly bounce?
Are you failing to make loan repayments or other commitments?
Translation: When you can’t afford mortgage, loan or credit card repayments.
Is there a discontinuation of regular credits?
Translation: Do you no longer have money coming in, or regular income, such as when you lose your job? (See the full Redundacy Guide for hints and tips if you have lost your job).
Is there a notification of some form of insolvency or court proceedings?
Translation: Are you going bankrupt or getting an IVA (see the IVA guide)?
Are there regular requests for increased borrowing or repeated rescheduling of debts?
Translation: Are you living off credit, struggling to repay it and regularly needing to increase credit limits? Or do you have a special debt payment plan in place with lenders as you can’t afford repayments at the usual rate?
Do you make frequent credit card cash withdrawals at non-promotional rates?
Translation: Self explanatory. However, if you’re taking cash out on a credit card, the interest rate is hideous and it usually indicates a problem.
Do you repeatedly exceed your credit card or overdraft limit without agreement?
Translation: Self explanatory. It then goes on to say that “where a complainant has incurred over £500 in unauthorised overdraft charges in the previous 12 months, that is to be treated as indicative of financial difficulty”.
This is interesting. It effectively means if you get over £500 of bank charges each year then, almost by definition, you’re in financial hardship. Many with large claims will be in this boat.
In addition, if you’re on benefits, it’s highly questionable whether banks should be effectively reducing your benefit income by charging you. It is not illegal for banks to take charges from your benefit income, though it can be illegal to deduct some other charges from benefit income.
If this applies, either alongside or separately from the other points above, tell your bank you are living on benefits and ask that it considers your complaint now.
Your bank should help
Importantly, banks are supposed to conduct a filtering process to ensure cases of genuine hardship are heard during
the waiver period. Though it’s also important to argue your case and explain that you’re in financial hardship and that your case should be dealt with now.
If you have a basic bank account this could help your case, as these are generally intended for those with financial problems.
Proving you’re in hardship
For most people it shouldn’t be a problem as the bank will ask you to fill in a form and it’ll be obvious if you fit the criteria. Yet as a back-up, once you have tried the suggestions in this guide, the non-profit debt counseling service the
CCCS (Consumer Credit Counselling Service) can look at your circumstances and make an independent decision whether it thinks you meet the financial difficulties criteria.
If you do, it will provide a letter for you to forward to your bank. While this isn’t guaranteed to change your bank’s mind, it may help.
To get it to look at your case, call 0800 138 1111 (Mon-Fri 8am-8pm) and say you are hoping to reclaim your
bank charges under the financial hardship criteria. An adviser will book you an appointment with a trained counsellor who will help you complete a full financial statement and discuss whether you meet the hardship criteria.
Do RBS Hardship cases works? 
Re: Do RBS Hardship cases works? 
