Mohammed was being pursued by his bank regarding an unplanned overdraft. He is an asylum seeker with a wife and child. As an asylum seeker he cannot work and his only source of income is a £70 per week payment from the Home Office for fuel and food for himself, wife and child. Mohammed asked his bank to freeze the interest and fees on his account as his debt was building and he had no available income with which to repay the debt. While the CAB communicated on Mohammed’s behalf with the bank in order to resolve the matter and arrange a payment towards the debt, the bank continued to contact Mohammed. They also instructed their solicitors to write to Mohammed, causing him further worry and distress.
The CAB provided financial statements and payment proposals to Mohammed’s bank. They also complained to the bank about the continuing contact with Mohammed and that the bank was ignoring letters from the bureau. The bank ultimately responded by refunding four months’ worth of fees to Mohammed and also making him a payment for distress and inconvenience caused. The bank accepted a £1.00 per month token payment on the debt.