Sorry this is long - I've tried to summarise as much as possible but I really need help.
I took out a Loan with PPI in 2004. The agreement had separate repayments and interest for each part. The PPI was cancelled in 2004 and refunded. Repayments of just the loan continued.
After a lot of correspondence the position in summary is:
Barclays have admitted in writing they wrongly closed the account in 2010 and passed it to debt collections demanding the full balance of £10,000 be paid in seven days. This includes £3500 not due to them as below.
Barclays admitted in writing to making an error when PPI was cancelled which resulted in £3000 (with accumulating interest) being left on the account.
Barclays are now claiming that an error was not made and that the repayments should have been recalculated when PPI was cancelled. They have now produced falsified figures which contradict the original agreement. These figures would mean that I would have still being paying towards a cancelled PPI policy. All payments made towards the PPI have already been refunded through a separate complaint.
Barclays error, meant that I was unable to rearrange the loan at a better interest rate because of the error on the account. This has cost me thousands of pounds which would have been saved.
Had I paid the £10,000 demanded this would never have been discovered and Barclays would have effectively stolen £3500.
I had to pay an accountant to work out where the error was which took quite some time – Neither Barclays nor the Ombudsman were able to work it out until these figures were provided to them.
The complaint was raised with the Ombudsman who closed the case before the error was discovered and refused to re-open it stating it was a new case.
Barclays have now changed the loan terms without agreement by adding interest on to the term of the loan instead of be cumulative interest.
Barclays refuse to acknowledge how much this has cost me in money time and stress over many years.
There is now £5500 outstanding on the loan. I have not made repayments for over a year and Barclays have not chased them up.
The last letter I received dated 29th November 2011 has the falsified figures, contradicts Barclays previous response and restates an offer of £250 as a gesture of goodwill. This doesn’t come anywhere near meeting what this has cost me. They want me to contact the local business manager to set up repayments. It further states they will not enter into any further correspondence on the matter.
As I see it the options are:
Wait until Barclays start chasing payments and let them take me to court and make my case there.
Make a claim on Barclays in Small claims for losses incurred including costs of letters time and travel visiting Barclays Head Office, the amount that would have been saved by rearranging the loan.
Accept the £250 and make repayments.