The Mirror

anks have refused to make public their case for charging rip-off overdraft charges.

Customers who want to see why their bank has hit them with charges will have to pay £100 to the High Court in order to get their hands on a copy of their defence. The Office Of Fair Trading is taking on seven banks and Nationwide Building Society over the validity of overdraft charges.

Both sides have lodged their arguments and the OFT has published its case on its site. Yesterday, it claimed the charges meant customers received credit on uneconomic terms and fees were disproportionate to the amount borrowed.

It also said charges did not relate to services provided but were carried out for the benefit of the banks themselves. And it claimed charges were not explained in plain language and were even liable to mislead. But the banks haven't published their defences. Instead anyone who wants to see an individual bank's case will have to pay the standard £100 High Court fee.
Advertisement
Click here to find out more!

The Mirror asked the banks for a copy. All refused or couldn't get hold of one. Once more, they are putting up hurdles to stop consumers getting a clear picture of how their current account works.

Instead of being open and transparent they have just added to the fears that they have something to hide.

Read Full Article...

MIRROR readers being bullied by their bank have been promised protection.

And the Financial Ombudsman Service says it may also award them compensation for any distress caused.

The pledge comes after we were swamped with calls for help from distraught readers.

Just like stroke victim Ray England, 65, whose plight we reported two weeks ago.

Along with many other readers, Ray, from Southend-on-Sea, Essex, was being driven crazy by a computer-generated barrage of menacing calls from his bank.

The caller is different each time so the poor borrower has to explain their situation over and over again.

The victims also include two readers who were forced to stop work to undergo treatment for life-threatening cancers.

Several have been left so badly shaken by their ordeal that they do not want us to name them or even let their bank discover they have been talking to us.

And one Gulf War veteran was so upset that his psychiatrist warned his bank that their tactics could make him suicidal.

Ombudsman spokeswoman Emma Parker said: "This is very shocking and it's certainly something we have had complaints about this.

"We would hope that lenders would be positive and sympathetic when they are dealing with borrowers in difficulty.

"We can understand the distress suffered by borrowers who are asked to explain their problem again and again and find it makes no difference.

"If you feel you are being badly treated, first complain to your bank. If it does not stop call our consumer helpline (020 7964 1000) and we will write to the bank on your behalf.

"If it reaches the stage of a formal complaint we can award compensation for any distress this has caused."

Cancer sufferer Lee Willshire has been hounded by his bank ever since his throat problem forced him to stop work 20 months ago.

Lee, 31 from London Colney, Hertfordshire, had borrowed £3,000 from Sainsbury's Bank to buy a motorbike.

He was unable to meet the payments for the year he was off work having treatment. He's now allowed to do two hours a day filling shelves at a local supermarket - Sainsbury's.

"My employer Sainsbury's has been very supportive," he says. "But Sainsbury's Bank has been ringing me night and day."

Another cancer victim - too scared to be named - was diagnosed with ovarian cancer last year.

She and her husband had to close their small catering business to undergo surgery and chemotherapy while he became her carer.

They have put their house up for sale to clear their debt to the bank. This has not stopped the bank making repeated phone calls demanding more money.

"You never get to speak to the same person," they told us.

"We have to deal with a total stranger with every call and go back over it again and again."

Road crash victim Charles Nimmo, 50, has been unable to work since he broke his neck and back when his van crashed with a burst tyre on a motorway 18 months ago.

Despite medical treatment he is still in constant pain.

And yet the former glazier and his wife Suzanne, 48, from New Addington, Surrey, were pursued day and night by HSBC over £16,000 in loans they were unable to repay.

"It got to the point that Charles was afraid to answer the phone.

"And in doing that he has missed important calls from his doctor," said Suzanne.

"At weekends the calls started at 8am and carried on until 10pm. It was a different person every time.

We have complained repeatedly but the callers say they can do nothing to stop them as their computers keep telling them to go on making the calls. It's stopped now but only after we complained time and again."

To make things worse, the bank talked them into paying £3,000 up front for costly payment protection insurance which was added to their loan. But the policy only covered Suzanne so it was a waste of money.

Our readers' experiences came as no surprise to the The Independent Banking Advisory Service, which helps people who have problems with their banks.

Chief Executive Eddie Weatherill said: "When the banks started introducing these automated phones three years ago they claimed this was to prevent people getting deeper into debt.

"I warned then that people would feel harassed by these calls unless there were careful controls on how many calls can be made in a day or week.

"It seemed to me this was all about putting the frighteners on customers to pay up and that's proved to be the case."

Advice

IF you are being hounded by your bank then complain in writing. If that fails call the Financial Ombudsman Service on 020 7964 1000. For help with debt contact your local Citizens Advice Bureau, the National Debtline (0808 808 4000) or the Consumer Credit Counselling Service (0800 138 1111).

Read Full Article

COURTS will try to turn away claims over rip-off bank charges by sending them to a free ombudsman service.

Thousands of bank customers will be directed to the Financial Ombuds man Service rather than taking legal action to win back charges imposed for accidentally slipping in to the red.

The courts are struggling to stay on top of the stampede as thousands of customers try to recover these fees.

Advertisement
Around 200,000 have successfully reclaimed rip-off charges in the last 18 months, forcing banks to repay a total of £20million.

Judges are now so overwhelmed with these cases that they have started setting aside specific days to deal with them.

And the Courts Service's money claim website is being upgraded to handle a doubling of demand.

The courts believe the Financial Ombudsman Service will cope better because it has dealt with financial battles like this before.

Already it receives 3,000 complaints about bank charges every week.

Later this week a message will be put on the money claim website and anyone receiving a reclaim form from the county court will be told about the ombudsman.

Read Full Article...