Bank payback for Featherstone family

A family in Featherstone trapped in what they described as a “vicious circle of debt” are celebrating after their bank agreed to repay them £450 in bank charges.

Wakefield and District Housing (WDH), one of the UK’s first Housing Associations to assist tenants contest overdraft fees, helped Shaun Ackroyd and his family make their successful claim against their bank.

Mr Ackroyd said the compensation amount represents a significant step towards bringing his family’s finances back in order.

“The money the bank is repaying us will go a long way to getting us back on track with our rent,” he said. “We were in a vicious circle of debt and, to be honest, we were surprised that we won – and surprised by how quick it’s all happened.

“It wasn’t very long after WDH helped us with all the paperwork and sent our claim off that we got a letter back saying the bank would give us back £450. We were very surprised.

“I can say in every confidence that everybody at WDH has been brilliant in helping us reclaim these overdraft charges.”

WDH is currently assisting 40 tenants to make claims against overdraft charges, with five of these now in final stages of claiming a total of £10,984 in bank charges.

In recent months WDH has acted quickly to lend tenants a hand after the Financial Services Authority (FSA) made an exception to its ruling that all bank charge claims be put on hold while the High Court and Court of Appeal considers the legality of the subject.

The FSA has said that people with insufficient incomes to cover reasonable living expenses and meet imminent financial commitments may still claim, and WDH has been close-at-hand lending advice and guidance on the claiming process.

Chris Gent, WDH Debt Team Leader, says the success of the Ackroyd claim might see positive outcomes for the other claims they are working on.

“We can never guarantee success, but this is a good sign,” says Chris. “Every month many tenants are charged a fine for going overdrawn on their bank accounts – they have less money the month after and are charged again and again and again – but we’ve shown we can help tenants get out of this crushing spiral of debt.

“With our help, people like Shaun and his family can claim back the money they have been fined or charged and get back on the road to financial recovery.

“I’m urging any of our tenants who are having difficulties with their rent to contact us to see what we can do for them.”
WDH says it should hear the outcome of the other claims by the end of September.

WDH offers a wide range of options to help tenants escape their debts - over two and a half thousand people have benefitted from contacting us about their finances.