ricardo

We were just checking my elderly mother-in-law's bank statements for something and we saw that there was a regular debit of 11.50 a month for 'account charges'.

She didn't know what this was, so a bit of investigation shows that this is for a premium account, such that it gives her breakdown cover (she doesn't drive), mobile cover (no mobile), travel insurance (she can't even get paid-for cover due to various illnesses) and a number of other things which she'd have no benefit from.

So we will be talking to the manager soon, but trawling through old statements it looks like this has been going on for several years. She doesn't know whether she signed up for a premium account or not, I can't see her doing so on the basis of the 'benefits' she'd get... unless it was completely mis-sold.

If the bank produces evidence that she signed up for this 'deal' then presumably the charges stand, unless we can show that it was entirely inappropriate.

Obviously we'd like her to be given a refund on the charges, anyone with any experience of this kind of thing ?

(Note that this is not the kind of charges that all the fuss has been about recently, this appears to be the normal charge for a premium account which she has apparently signed up for).

chocolate_o_brian

iTrader: (22)

id have thought it would be a pretty simple case of asking for the supposed signed document, regardless of how old it is.

if not demand all her charges back and ask for a couple of "sweetners", like free breakdown cover, mobile insurance cover, travel insurance, things like that

cookstar

iTrader: (6)

It sounds similar to my Barclays account, and if I remember correctly I didn't sign for it, they just asked me if I wanted it and I said yes.

David Lock

I had a similar (but not exactly the same) with a dormant account I had with Lloyds. Virtually nothing in the account but I was being charged £8.00 per month for administration or some such crap. These monthly deductions then took me overdrawn and they starting charging me for that. A call and a letter eventually got it sorted.

Your m-i-l's case come under what is technically known as the "Greedy b'astard banks robbing old ladies" category.

I would be sending a terse, but business like, letter to the bank pointing out the obvious as per your OP and emphasising that m-i-l would not have knowingly taken out this cover had it been explained to her what it was actually for. Note if you just ask them for a copy of any agreement that was signed you have rather blown it when they send you one. Try and stay one step ahead

Send it recorded (signed for) and you'll need her to sign it as well. Won't do any harm to send a copy to the Ombudsman. dl

PS. Isn't Barclays is it?

ricardo

Yep, an 'Additions' account...

Letter to bank manager has been drafted, pointing out the obvious flaws in their product for someone who doesn't benefit from it. Turns out it goes back to 2001 - they must have asked her if she wanted to be 'upgraded' to that account.

Even if they come up with a signed document it only proves that she'd agreed to a deal that was completely inappropriate, which implies that it was mis-sold from the start.

Thanks for the replies...

ricardo

Bringing this thread back because the bank has finally replied.

Apparently the 'upgrade' was automatic, somewhere in a leaflet back in 2001 was a notice that you can opt-out within 90 days. They say 'it is the responsibility of the account holder to check their statement and make sure it doesn't contain anything not in accordance with their instructions'. It was definitely opt-out rather than opt-in.

They go on to say that they accept that an account holder might not have noticed the changes for a month or two, but they consider that a reasonable period for letting them know would have been a few months.

So Big Bank 1, Little Old Lady 0 at present. Not the end of this though...

coolangatta

Barclays are indeed a bunch of robbing dogs .
I know as I'm a 'customer' of theirs.

I hope you can get some compensation for your MIL.

Suresh

That's nothing other than a very sharp practice.
First thing to do is to move the funds, close all accounts and terminate the relationship. Then get on to the banking ombudsman.

RJM25R

iTrader: (1)

OK, Ring the bank and tell the manager that you are exploring a complaint to the FSA with regard non-compliance. As it is an insurance product, the FSA will probably have had previous complaints. . .


http://www.fsa.gov.uk/

The fact is, that it WILL be FSA approved, but the mere mention of making a complaint against HIM and HIS BANK may make him rethink his position.

I would ask DIRECTLY for a full refund of the charges, otherwise you will follow the above advice of emptying funds and changing banks.

PS when you do leave an account, if you wanna annoy them, just leave 1p in it on purpose. They still have an obligation to produce statements and administrate the account!

David Lock

I have my strong doubts that the bank can act like this. Outside of banking the "tick this box if you want to opt out" is no longer legal and the default has to be that you tick box if you want opt-in.

What proof do the bank have that the old gal received the leaflet. Sweet ***** all is the answer.

£11.50 a month since 2001 is a lot of dosh so please don't let this one go!!

Personally I'd keep the account open for a bit longer even if you only keep 1p in as suggested. dl

ricardo

The current Banking Code available from the website at Banking Code Standards Board has a specific clause which prohibits them from this kind of opt-out upgrade. However, the version of the document which was in effect in 2001 doesn't mention it. I can't help thinking that this was added due to the fallout from cases like this one.

We are planning to take the complaint further through the Financial Ombudsman. I'll post the eventual outcome in due course !

john_s

iTrader: (1)

From what I remember of contract law, a contract can't be made by inactivity, so saying something like "if we don't hear from you in 90 days, we'll sign you up for it" shouldn't constitute the basis of a binding contract.

RJM25R

iTrader: (1)

Good luck, and keep us informed.