Hardship & Stayed Claims
Hardship and Stayed Claims
Letter for an application for consideration for hardship
Your banks Address
Account number xxxxxxxxx
Notice of Consideration for Hardship Status
Please find attached a detailed summary of my financial standing, as evidence in support of my claim/request, be treated sympathetically and speedily in view of hardship.
In making this request, I remind you of your duty to comply with conditions agreed in the waiver of July 2007 and continuation of July 2008 between yourselves and the FSA.
I look forward to acknowledgment of this, with an undertaking that you will proceed to process it within the requirements of the terms agreed within the waiver.
Enc; Financial Statement.
It is worth pointing out that most banks are looking at hardship as priority debt arrears, specifically the level of priority debt arrears against free income available. So any letter should emphasise any arrears, threats of legal proceedings, repossession you may have against any of the list below, and include copies of letters/documents showing any priority debt arrears:
The following are generally regarded as priority debts:
- Secured Loan
- Council Tax
- Maintenance / Child Support
- Magistrates Court Fines
- Hire Purchase Goods
Also worth mentioning are:
- Reduced income/loss of job
- Serious health issues both physically and mentally
- Threat of possible suicide
- No money for food or rent
Spreadsheet for income and expenditure :-
Big thank you to Mr Lex and MARTIN3030 for creating this template
For new hardship claims it would be a good idea to include in your letter to the bank the list of criteria (highlighting those which apply most to you) which the FSA require for there to be a triggering of hardship and which the banks have to consider before rejecting a claim.See below:
FSA Waiver Direction
The FSA has issued further directions to the banks regarding an extension of the waiver until January 2008.
Annexe 2 gives guidance for claims under financial hardship: here
Annex 2 – Dealing with complainants in financial difficulty
1. The firm will be sympathetic and positive when considering any financial difficulties claimed by the complainant. Firms will not subject a complainant to harassment or undue pressure when discussing their problems.
2. In making an assessment of financial difficulty the firm will take into account:
a. evidence of changes in lifestyle, including loss of employment; disability; serious illness; imprisonment; relationship breakdown; death of a partner; starting a lower paid job; parental/carer leave; and starting full-time education;
b. evidence of the following events:
- i.items repeatedly being returned unpaid due to lack of available funds;
- ii. failing to make loan repayments or other commitments;
- iii. discontinuation of regular credits;
- iv. notification of some form of insolvency or court proceedings;
- v. regular requests for increased borrowing or repeated rescheduling of debts;
- vi. making frequent cash withdrawals on a credit card at a non-promotional rate of interest; and
- vii. repeatedly exceeding a credit card or overdraft limit without agreement (and, in this regard, 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).
3. If during the handling of the complaint the firm becomes aware (including by notification from the complainant) that the complainant may be in, or heading towards financial difficulties, the firm will contact the complainant to outline their approach to financial difficulty cases and to encourage the customer to contact the firm if the customer is worried about their position. The firm will also provide signposts to sources of free, independent money advice.
4. The firm will make available to complainants straightforward information in plain English on the firm’s procedures and systems for dealing with customers in financial difficulty.
5. If it becomes clear to the firm that the complainant needs specialist assistance, the complainant will be referred promptly to a specialist team that deals with customers in financial difficulties, if one exists. The firm will give a phone number on all communications that will put the customer in contact with a named person or a team dedicated to dealing with cases of financial difficulty.
6. Where the firm does not have sufficient evidence to assess whether or not the complainant is in fact in financial difficulty, the firm will seek such further relevant information as is reasonably required to make that assessment. In the event that the firm reasonably requires relevant information to be provided by the complainant and the complainant does not provide the requested information within a reasonable period of time, the firm shall not be obliged to treat such a complainant as being in financial difficulty.