The Financial Ombudsman needs to get tougher on high street banks that play the system on ‘financial hardship’ cases claims DebtWizard 

In October 2009 the FOS has had to go back to the banks to get them to sort out ‘Financial Hardship’ again once more.

The British Bankers Association has a voluntary code which says that Banks ‘Will deal quickly and sympathetically with things that go wrong and consider all cases of financial difficulty sympathetically and positively.  Under Financial Services Authority (FSA) rules, banks are supposed to treat hardship claims sympathetically.

But the FOS says it has received many complaints that this is not happening which prompted it to write to banks reminding them of their commitment and asking them, ASKING mind you, to  ‘ensure that you do all you can to avoid unnecessary referrals of cases to the ombudsman service – by promoting the early, fair resolution of your customers’ complaints.’ 

I get so frustrated when I read that banks have been ‘asked’ to ensure that they do what they should be doing as of right. See FOS letter dated Oct2009 by Caroline Wells. Letter opens in PDF document. 

Clearly the bank’s don’t think it is in their interest to help out on financial hardship cases, even though it is in the BBA voluntary code, (see page 25) and the 'Guidance for Subscribers code' (then see page 46), as the longer they can take to fob people off, the less it will impact on their business, as it COSTS them money! 

There are too many voluntary codes and ways around the system for these banks. What I would like to see is the FOS, OFT and FSA go in hard, put on steel toe caps and kick them out of office if they are unfit to serve the consumer. 

Get it right first time and on cases where the FOS prove that the bank has broken the guidelines, fine them heavily!!!!!  

I have been watching the ITV programme ‘Seven days on the breadline’. Perhaps, instead of celebrities appearing on this show it should be Chief Executive - Angela Knight CBE of the BBA and a few bank bureaucrats so that they can see how much people are suffering because of the stance the banks are taking.

Perhaps then may begin to understand the stress and misery they are causing by their unwillingness to help those vulnerable and desperate people.

Need to know more on 'financial hardship' then see the

Debtwizard guide to claiming financial hardship.

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