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Denied Overdraft Increase even though my credit is good?
Hi,
This is my first post so please be gentle!
I recently requested that my overdraft be increased from £500 to a £1000 for a eight month period to allow me to sort out my finances.
I have received a letter from HSBC saying that although my credit score was 'acceptable' my current 'borrowing is at the maximum limit that they are prepared to agree to at this time'
So they are happy to apply charges to my account but not help me in anyway?
I just feel that yet again a Bank isn't prepared to help but is more than happy to 'cash in' on my circumstances.
I would love to pursue this matter if it is possible/worthwhile, but I dont know how to, any suggestions?
ps I have submitted a claim for unfiar bank charges with them recently.
Re: Denied Overdraft Increase even though my credit is good?
Increasing an overdraft has many factors involved. Plus they are damned if they do and damned if they don't.
If they increase it you can criticise them for irresponsible lending and if they don't they can be criticised for not helping. Are you working? Have you not had charges for exceeding your account in the last say three months?
Re: Denied Overdraft Increase even though my credit is good?
Hi,
Im a Charge Nurse in a community mental health team, have been working in the NHS for over 18 years, in the current climate a secure job.
Yes, ive had charges on my account over the last three months, its usually these that push me over my limit, but the last two months i have remained within my limit.
I accept the point about lending but it seems odd that they can profit from it when im trying to do something about it.
I received a letter from them two weeks ago saying that they recognised my claim but as they courts hadn't sorted out 'the legal postion' they were not in a position to consider it but would look at it when the legal situation had been cleared up. they owe me over £1400 which would really help me out!
Your objective should be to get your claim for refund of these charges into court - albeit 'stayed ' along with about 65,000 others. The reasons for this are as follows :
When you start to send off your letters, they will probably try to tell you you can't claim because the case's are 'stayed' It is important that you ignore this and carry on, only the courts can put a 'stay' on your claim
Although the banks have a ongoing test case with OFT there are a number of reasons why you should start to claim at court now
Any older charges (coming up to 6 years) could be lost if you wait for the OFT case to end. Start your claim now and those charges are protected
you are supposed to be protected by the 'waiver', we now know you are not
When the stays are finally lifted, you will be one of the first in the queue to get paid
Once the courts are involved, you get the 8% interest.
While the banks are protected by the stays, we the consumer, have no such protection and charges continue to mount up
For some people this may mean going into default. If it is clear that the default was made in respect of charges and that it was lodged after a charges claim was begun then these users have a really excellent chance of having it removed.
Meanwhile , to stop HSBC plundering your current account, it may be worth your while considering a 'parachute' account . i.e. one with a coompletely different bank , which you use for everyday income and expenditure, but don't go overdrawn . That way you can control the amount you have available to service your overdraft with HSBC .
If your overdraft is mainly made up of bank charges , then it's probably worthwhile just aiming to bring it down to what you reckon you owe them , less what they owe you ........ they won't chase you for it:
a. because the account is 'In Dispute'
b. because your counter-claim will be waiting in court for them ..
By all means come back if you have any further queries - someone will answer and we're user-friendly on here.........
Last edited by johnnymitch; 11th April 2009 at 13:31.
Reason: removing font marks ..........
Nemo me impune lacessit
Advice & opinions given by johnnymitch are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.
If you think I've helped you please feel free to tip my scales
Re: Denied Overdraft Increase even though my credit is good?
JM, you need to read the fsa waiver with regards to the "stay period",
"(14)
the firm must not take into account the period between 27 July 2007 and the date of termination of this direction (the “stay period”) for the purposes of relying on any limitation period (or periods) or time limits within which complainants must:
(a)
make relevant charges complaints;
(b)
refer relevant charges complaints to the Ombudsman; or
(c)
bring claims before the court;
and the firm must not otherwise limit any redress that may be due to the customer, when complying with DISP or otherwise, because of the stay period;"
Re: Denied Overdraft Increase even though my credit is good?
Personally I don't agree with going to court when it is automatically stayed. If the bank take you to court over a bank charges account then you have the right to defend it on the basis of the charges and get their case stayed. What is the logic of taking the claim to court where it is stayed? I still don't see the logic. I think the POC on Bank Charges on here at the moment are flawed with penalty charges argument(which doesn't take into account the OFT test case judgement to date re penalties). Have a look yourself at it.
Having said that, there is one exception to that, which is Scotland because I believe there is a good case to go to court and be able to get any sist in a claim overturned.
Re: Denied Overdraft Increase even though my credit is good?
So you'd rather we all sat waiting for the banks to make up their minds whether to honour their extortionate charges, when the courts finally decide to make them pay up ?.......... and forgo the 8% interest which the blooming banks certainly wouldn't cough up !
Up till now , I've always respected your point of view , yourbank , very informative a lot of it ...... but I think you've lost it a bit on this one
Re: Denied Overdraft Increase even though my credit is good?
Originally Posted by johnnymitch
So you'd rather we all sat waiting for the banks to make up their minds whether to honour their extortionate charges, when the courts finally decide to make them pay up ?.......... and forgo the 8% interest which the blooming banks certainly wouldn't cough up !
Up till now , I've always respected your point of view , yourbank , very informative a lot of it ...... but I think you've lost it a bit on this one
JM the waiver itself(and probably in spite of itself as well) allows for compensation within it. You have said you have read the waiver but have you understood it as well. (pages 6 and 7)
"(15)
to the extent that sums are ultimately to be paid to complainants in respect of relevant charges complaints that have been stayed, the firm must include in these sums an element of compensation in respect of interest charged to or lost by the customer as a result of being out of money during the stay period;"
Does that make sense why my view is different to yours?
Re: Denied Overdraft Increase even though my credit is good?
And would that interest charged to or lost by the customer be anywhere near 8% yourbank ? Would it heckers-like !
Also the 8% interest , if someone is using the Advanced Spreadsheet , is on top of the interest the bank has diddled the customer out of in the first place ........ |I shouldn't think they're going to compensate anyone to that extent , do you - c'mon, be honest now ..
Sorry, iiyama66 - didn't mean to use your thread as a sparring ground ......
don't hesitate to come back as soon as you've got a query .....
Last edited by johnnymitch; 11th April 2009 at 19:20.
Re: Denied Overdraft Increase even though my credit is good?
Originally Posted by johnnymitch
And would that interest charged to or lost by the customer be anywhere near 8% yourbank ? Would it heckers-like !
Also the 8% interest , if someone is using the Advanced Spreadsheet , is on top of the interest the bank has diddled the customer out of in the first place ........ |I shouldn't think they're going to compensate anyone to that extent , do you - c'mon, be honest now ..
Sorry, iiyama66 - didn't mean to use your thread as a sparring ground ......
don't hesitate to come back as soon as you've got a query .....
It would be 8% which is what the fos would offer on for example a PPI claim. Not everyone has gone contractual rate, however, the difficulty is that I think Haliday v. HBOS might have knocked out contractual on bank charges. I think contractual on Credit Cards, as an aside, is easier to argue in court.
I have no idea why you seem to think that it would be any different. If a court would offer 8% what makes you think it would be any different.
Re: Denied Overdraft Increase even though my credit is good?
We're not talking about Credit Cards or PPI here , yourbank - only current account charges - they're the only ones which are being stayed .
If a court would offer 8% what makes you think it would be any different
There's no 'if' about it yb , - it's S69 interest which is applicable to all those claims. The court doesn't offer it - the court orders it - to be paid by the banks when the Lords (hopefully) throws out the last appeal ....
Re: Denied Overdraft Increase even though my credit is good?
The bank can and will carry on adding charges to your account even with a stayed court case pending, there is nothing to stop them doing this which is why we recommend you open a new bank account because if you don't, sooner or later they will operate a set off and your cash will disappear.
With regard to overdraft refusal, they normally offer you a loan instead, this is because loans go down in the banks books as assets that they can borrow money against and overdrafts dont... hence the current collapse of the banking system, the loans they were quoting in their books were just not viable.
Re: Denied Overdraft Increase even though my credit is good?
Originally Posted by iiyama66
No problem's its a debate that interests me, its that i just dont understand much of it!!
so,
If my bank charges claim is in, my account is in dispute, therefore the bank can not apply anymore charges?
The bank are not supposed to apply any more charges , but they will. But if you're working from a parachute account , you'll be ok and these charges will just build up......
However , they can't chase you for them , and you can either amend your claim at court once the judgement is finalised (which will cost, and you can't claim it back ) or you can start another separate claim for what you haven't already included in your first one - and claim back the court costs as you did in the original .
If this is correct how should I contact the bank and stop these being applied?
IMHO a waste of time trying , they've been running roughshod over the Banking Code since the 'Stays ' were introduced.
Stay period, what is this?
The courts have been granting stays on all claims for Bank Charges waiting for the High Court and now the House of Lords to adjudicate on these charges . It is the opinion on these sites that the banks will lose and are merely wasting time and money putting off the day when they'll have to cough up . The stays periods have been extended six-monthly from July 2007 .....and the present one is operative until july 2009 - hopefully it'll be the last one .. and claims at court will start to be settled (see my previous post on this )
Sorry for being 'thick' but ive just finished a v long shift and clearly im not very good with money!
Thanks
You're not thick at all mate , it's a minefield and we've all learned along the way from others who have experienced it - however , hopefully you've now got the weekend to recover before taking on the bank - so have a good 'un .
Re: Denied Overdraft Increase even though my credit is good?
The stay period relates to ALL OFT test case issues. The Current OFT test case at the HoL is not going to end the current hold on county court claims as this part of the litigation is about whether the banks' terms can be assessed under the UTCCR 1999. The second stage of the case is to identify terms that are unfair and that could lead to addtional litigation.
JM we aren't going to agree and unfortunately, asking the OP to go to court is simply wasting his time with an inadequate template which includes "Penalties in Law"(not even MSE include that one).
Denied Overdraft Increase even though my credit is good?
Originally Posted by johnnymitch
So you'd rather we all sat waiting for the banks to make up their minds whether to honour their extortionate charges, when the courts finally decide to make them pay up ?.......... and forgo the 8%
didn't mean to use your thread as a sparring ground ...... 
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