SaltnVinegar v Santander

[SaltnVinegar]

Hi All

So today my letter went off to Santander as a pop at getting bank charges reclaimed.

I have no doubt this will end up going to the FOS but don't ask don't get.

I started off by sending a SAR to this lot. It is shocking when you put your finances under the microscope to see where your money has been going.......

In 3 years Santander accrued a little over £5k in charges and interest

I am looking at a claim of a little over £3k. This would have a significant impact on my DMP balance so fingers crossed!

SnV

[BBoo]

Re: SaltnVinegar v Santander

Fingers crossed for you!

[di30]

Re: SaltnVinegar v Santander

It all adds up, good luck and please keep us posted and ask for help if required.

[SaltnVinegar]

Re: SaltnVinegar v Santander

Fingers crossed for you!

Thanks BBoo

It all adds up, good luck and please keep us posted and ask for help if required.

Thanks Di

I'll keep the thread updated as things happen (or not as the case may be!).

I'm not hanging massive hopes on this one(!) but as you said it all adds up and all its going to cost me is a little time, some paper, envelopes and stamps.

However

Knowing Santander they will try to drag this out and we all know how slick and efficient the FOS are in dealing with these things!

Cheers
SnV

[di30]

Re: SaltnVinegar v Santander

You keep at them hon, if it comes to it, we will get the CEO involved, even the MP if we have to, we will get there x

[SaltnVinegar]

Re: SaltnVinegar v Santander

This is the letter that has gone to them (identifying amounts removed etc)

Dear Sir or Madam,

I am writing to request that you repay all the charges in relation to direct debits, unauthorised overdrafts and standing orders that have been applied to my account in the past six years.

By issuing me with these charges I feel that you have broken the FSA’s regulatory principle to ‘pay due regard to the interests of its customers and treat them fairly’. I am also claiming a refund of the fees for the following reasons:

I believe the fact that I have been incurring bank charges goes contrary to the aims of the Lending Code (Section 9) and Banking Conduct of Business Sourcebook (section 5.1.4 ‘in particular, a firm should deal fairly with a banking customer whom it has reason to believe is in financial difficulty’), and previously were contrary to the Banking Code.

Between xxxx 2007 and xxxxx 2011 charges amounting to £xxxx were applied to my account.

Interest applied to my account during this period amounted to £xxxx.

My personal situation has been affected by the charges leaving me in financial hardship and resulting in my entering a debt management plan in xxxx.

I contacted you on several occasions to try to have charges stopped with little success, and was, on one occasion, told by a member of your staff that you were providing me with financial assistance by providing me with a big overdraft!

On some months the amount of charges was significant (for example in xxxx I was charged £xxx, xxx I was charged £xxx).

My finances during this period were extremely tight, and these amounts made my financial position significantly worse. Examples of this include:

1) Payments being regularly returned due to insufficient funds being available due to charges being taken. This resulted in a ‘snowball’ effect where charges were being made as a result of charges being taken

2) I was unable to meet basic necessities and started to miss payments on priority bills such as council tax, groceries and utility bills. As an example I got into arrears on my electricity by almost £xxx. This resulted in a higher direct debit to pay the arrears which I then could not pay as a result of the charges. On several occasions, after charges has been applied to my account I had less than £xx to pay for groceries and petrol to allow me to get to work.

3) The charges on my account also meant that I started to miss credit card and loan repayments. This resulted in these companies applying charges of their own.



I also feel that the charges were very disproportionate. On many occasions I was charged £60 for one returned payment. These fees you have tried to justify by splitting them calling one an unpaid item fee and the other an instant overdraft request fee. As my situation gradually got worse I was forced to live off credit and was using regular cash withdrawals from credit cards just to make ends meet.

The charges applied to my account effectively trapped me in a cycle of charges that I was unable to break out of.

In xxxxx I approached the debt charity CCCS and with their guidance set up a debt management plan and opened a bank account with another bank to arrange for my wages to be paid there.

In xxxxx all of my creditors, including you, were informed of my debt management plan.

Despite being aware of my debt management plan you continued to apply charges and interest to my account until xxxxx, when you issued me with a default notice and handed my account to external debt collection agencies.

In this 6 month period alone you applied almost £xxxx in interest and charges, even though you were aware that I was in a debt management programme and in financial hardship.


It is also my view that the charges you have applied are unfair under s.140A(1) of the Consumer Credit Act 1974 and contrary to the requirement of good faith, having caused a significant imbalance in our relationship and a detriment to myself, and under regulation 5(1) of the Unfair Terms in Consumer Contracts Regulations 1999, in the following respects (save for, in the case of the later, those matters which relate to the level of the charge as against the service supplied in exchange):

(1) The charges were (or had the potential to be) excessive and punitive in comparison with the costs to the bank caused by my conduct which triggered the charges.

(2) The charges were set by reference to the overall cost to the bank of providing current accounts to all of its customers which held such an account, rather than merely to the cost of my conduct thereby effectively requiring me to subsidise the provision of current accounts by the bank to other customers.

(3) In the premises the bank did not deal fairly as between myself and its other customers.

(4) The existence and quantum of the charges were inadequately and/or insufficiently explained and/or drawn to my attention either; when my account was first opened; when I gave an instruction which would result in the levying of a charge; or otherwise before any particular charge was applied.

(5) The circumstances and manner in which the charges were levied created potential for the application of multiple charges and the levying of charges to give rise to the application of further charges.

(6) The complexity of the charges and/or the circumstances in which they were levied.

(7) The nature of the charges and/or the circumstances of their application was such as to cause me inherent difficulties in predicting the incidence and amount of such charges in advance.

(8) The absence of any effective competition between providers of current accounts which restricted my ability to chose a current account operated on terms which did not provide for charges such as (and/or equivalent to) those levied by your bank.

(9) The charges were (or had the potential to be) excessive in comparison with the level of borrowing which triggered the levying of the said charges.

In particular, and without prejudice, the burden of proof for the above rests on Santanderto prove that the circumstances of our relationship are fair (pursuant to s.140B(9) of the Consumer Credit Act 1974), so unless you can provide evidence to the contrary I expect a refund of the full amount requested by return.

The charges over the last 6 years total £xxxx plus as I believe I have been unfairly deprived of the money I have calculated £xxxx interest at the statutory rate, the amount a court would award and I ask that you repay me the full amount of £xxxx. I have attached a full schedule of the charges with this document.


I look forward to a full response to this letter within 14 days and if I do not receive a satisfactory response I intend to pursue my complaint to the Financial Ombudsman Service or small claims court at the earliest opportunity.

Yours faithfully,

[di30]

Re: SaltnVinegar v Santander

Excellent letter, looks like you have covered everything, well done and good luck.

[SaltnVinegar]

Re: SaltnVinegar v Santander

Hi All

Well response today from Santander, and it is, unsurprisingly, a big FO.

So on to the FOS now. Will put together a letter around the human argument and impact on contributing to financial hardship etc.

Round 2 - ding ding

SnV

[CleverClogs (RIP)]

Re: SaltnVinegar v Santander

If everyone did this to Santander, wouldn't the Spanish economy collapse?

[di30]

Re: SaltnVinegar v Santander

Sorry to hear the outcome on this and I take it then they have confirmed its the full and final decision?

When you complain to the FOS, make sure you send copies of any letters sent and received, especially the final response.

Good luck.

[SaltnVinegar]

Re: SaltnVinegar v Santander

Sorry to hear the outcome on this and I take it then they have confirmed its the full and final decision?

When you complain to the FOS, make sure you send copies of any letters sent and received, especially the final response.

Good luck.

Hi Di

Yes it was their 'full and final' response.

I wasn't expecting anything less to be honest. I am sure its also no co-incidence that within a week of them getting my complaint they are getting their DCA rats (Wescot) to badger me with a 'settlement offer'.

So off to the FOS now. I think I will focus on the 'human' element, rather than try to argue legal technicalities as Santanders behaviour was pretty poor.

Will update this as soon as I get the letter together!

Cheers
SnV

[oscar]

Re: SaltnVinegar v Santander

SnV

I sent a not too dis-similar letter to barclays and got a similar response. I thn forwarded the letter to FOS, who, had little interest.

In hindsight, after advice from Niddy, this was because I "told the FOS what to do, where to look, and what their own guidelines stated"

I basically stitched myself up like a kipper.

Hope you have better luck tahn I did.

[Wishfull]

Re: SaltnVinegar v Santander

any update on this

[SaltnVinegar]

Re: SaltnVinegar v Santander

ARRRGH

I have totally forgotten about this I have been so busy with work.



Is there any way I can resurrect this? Or have I missed my window of opportunity with the FOS?

SnV

[Never-In-Doubt]

Re: SaltnVinegar v Santander

did the fos actually make any decision? If you pulled out or let it lapse prior to a final decision, you can ressurect it - sure