Help- Barclays have cancelled my overdraft and want the £3000 back or for me to take it as a loan!

[Cornwall_Girl]

Hi,

 

I would really appreciate anyones advice here, it's causing me so much stress and anxiety...

 

I have had an account with Barclays for 12 years, which became a student then graduate account. After falling into trouble financially earlier this year I went over my agreed limit (3000) a payment plan was set up but I couldn't make the repayments, so another was devised. I've been moving house this month and didn't realise I missed the latest payment, and couldn't access my post for a week and so see they were threatening to remove all facilities. Having realised I called the number immediately only to be told it was too late- they wanted the WHOLE balance back.

 

I made a payment that day to clear the account down to under my previoes 3000 agreed limit but they said 'too little too late'.

 

They say uless they can have it in full within six months, i need to take it as a loan to clear it.

 

I don't want a loan!!! I am happy to pay it down by what I can afford every month (30-50 pounds).

 

I'm worried as they now see me as overdraft, they're gonna hammer me with charges!

 

I already have a seperate account with another bank where I deal with all of my finances...

 

HELP!!!

 

can they make me pay it back through a loan???

Edited October 27, 2009 by Cornwall_Girl
grammar

[cerberusalert]

Post moved to Barclays forum

[raydetinu]

No they cant force a loan on you but they can ask the od to paid back, lucky you got six months! some ask for it immediately. they are being fair in allowing you the options, it saves them taking you to court.

[Cornwall_Girl]

The problem is there is no way I can pay back 3000 in that time.... No chance at all.

 

I only earn £950 a month, and rent/bills etc takes up pretty much all of that!

[BankFodder]

I think that requiring the repayment of £3000 within six months on a 12 your account is extremely unfair. I would say that it is contrary to the banking code of practice.

 

I think that you should write to them and complain about this and tell them that you want to complain put into the ombudsman and that you need a reasonable time to repay the money. You should not be forced into a loan and you should refuse to take out a loan if this is not what you want to do. I think you should also write to the OST and also to trading standards and complain.

 

How much of the £3000 overdraft is comprised of charges? I'm sure that some of it must be. Find out how much of the loan is comprised of charges and then start claiming that back. Make sure you include the interest you have paid on those charges and also interest on the entire amount itself. If you have been intimidating charges for the last 12 years you could easily find that the whole lot easily equals the £3000 they think that you owe them.

Send them a letter putting the account formally in dispute and explain to them that this is because of their unreasonable behaviour and also because there are bank charges involved in the overdraft. Warm them that if they ignore this letter then you will complain to the ombudsman.

In the meantime to show that you are reasonable, I suggest that you start making a regular payment. Write to them and tell them that although the account is in dispute, you intend to make reasonable monthly payments and that if they caused any trouble that you will report this to the FOS as well.tell them that they are obliged by the banking code of practice to treat you reasonably and fairly and this is what you expect.

 

Decide on the level of repayment that you can afford and which will reduce the overdraft within a reasonable time -- say two years. This may be difficult that you need to make the effort. Bear in mind this is really just to keep them quiet while things get sorted out. however do not let up making the payments until you understand the whole situation and that you know that you have control. If you find that you have made them payments when you fact the overdraft is comprised entirely of charges -- then claim the payments back.

 

They may refuse to take the payments. If they do then you should write to them immediately and complain about this and say that they are refusing to allow you to reduce the problem and that you want this taken before the ombudsman as well.

 

In other words at every step of the way, you should report any unreasonable or uncooperative behaviour immediately.

 

Even if they do reduce accept the payments, make them anyway. Even if it means that you have to leave the cash at the counter or with the manager simply with the reference number and explaining what it is for. Force them. Put them under pressure. Keep control. Don't yet then dictate terms to you. You must dictate terms to them.after all you are the customer -- they are only working for you.

[Cornwall_Girl]

Thanks for the advice!

 

I have already printed the letter regarding getting an account of my charges since 2001... I know it runs into hundreds of pounds. When I get that I will pursue it.

 

I am thinking of applying for this through hardship considering the current situation with them at the moment.

 

The most I can commit to them monthly is forty-fifty pounds- do you think they will accept this> I can prove through my finances this is reasonable.

 

I will write to them to officially complain thankyou... the actual time they gave me as a limit was until March, which is actually LESS than six months.

 

If they had just given me that extra day on the account it would have been paid under limit! Ironically the payment plan wasn't even due to be completed until December!

[slick132]

Hi CG,

 

Get the info about charges on the a/c using our SAR with the £10 fee.

 

Separately write making the points that BF has told you. You can send off the 2 letters in the same envelope but use Recorded Delivery.

 

Shout if you need help.

[Cornwall_Girl]

Thanks Slick,

 

I've already sent off to find out what charges I may be owed...

 

I'm just not sure on hoe to word the other letter, do you have any suggestions??

 

Many thanks for your help!!!

[slick132]

Hi CG, Letter to Barclays as follows but adapt as necessary to reflect your own case:-

 

Dear sir or madam,

Formal complaint - Account No xxxx xxxx

I must register a formal complaint about your handling of my account. If you are unable or unwilling to assist me through financial difficulty I am experiencing, I want my complaint to be looked at by the FOS.

Around xxdate this year, I was experiencing financial difficulties and went over my £3,000 overdraft limit. A payment plan was made but I was unable to keep this up, so a further plan was devised and I kept to this.

Whilst moving home this month, I overlooked a payment and, because of delays in post re-direction, I was unaware that you had written threatening to withdraw the current facilities and payment plan.

When I realised my oversight and tried to correct it, I was told in a phone call that I was too late and that you required repayment of the full amount immediately. I made immediate payment to get the balance back down below £3,000 but was told this was "too little, too late".

I explained that I would continue to make payments to bring the account balance down but was told that, unless I could repay the full amount within 6 months, I would have to agree to a loan.

I do not want to be forced into taking out such a loan but am willing to offer the amount of £xx per month which is as much as I can reasonably afford.

To enable me to reduce the account balance, it would assist greatly if you would stop adding further interest and charges to the account.

On the subject of your charges, I have enclosed a separate SAR for my personal data, so I can seek a refund of default charges made to this account.

Until the issue of your charges is resolved, this account is clearly IN DISPUTE and you should not engage in collection activity, pass the account on to any other party to pursue, or register any adverse credit data with any third party agencies (CRA's).

I would appreciate you looking into this sympathetically so we can reach a mutually acceptable arrangement. If you fail to deal with my situation in a reasonable way, I shall have no option but to refer the matter to the FOS for investigation.

Kindly keep all communication in writing as I cannot deal with this matter by telephone.

Yours faithfully,

Send this to their HO by Recorded Delivery:-

 

Barclays Bank plc

Head office customer relations

1 Churchill Place

London

E14 5HP

 

Also enclose, in the same envelope, a SAR with the £10 fee - http://www.consumerforums.com/resources/templates-library/48-bank-templates/110--data-protection-act-1998-subject-access-request-

[Cornwall_Girl]

thanks Slick,

 

I can't tell you how much this helps!

 

I've been harrassed by phone calls now everyday, despite speaking to them repeatedly! Yesterday someone called and then said 'oops... I see you spoke to my collegue ten minutes ago! It's ridiculous!

 

Also another red top letter in the post yesterday threatening to cancel the account and demand it all in one sum! Apparently they can't suspend action until they have a reference fron the CAB...

 

I'll get this letter off to them, and ask them to stop the calls!

 

Many thanks again.

 

CG

[slick132]

Hi CG,

 

If they are harassing you with phone calls, keep a log of all their calls with time and date and see here - http://www.consumerforums.com/resources/templates-library/52-harassment/135--harassment-by-telephone-response-letter-

 

Another good idea is this - they don't like being recorded - The Consumer Forums - Telephone Recorders reviews.

 

Don't talk to anyone on the phone any more. What they say about the CAB is total rubbish. Just hang up after telling them that you are recording all incoming calls now.

 

Ignore any letters from DCA's just now and get the letter off to Barclays.

 

[Cornwall_Girl]

UPDATE

 

 

I still haven't heard back from the CAB and it's been over a week...

 

So I've posted off my complaint letter along with a claim for my charges which come to over a thousand pounds!

 

However... yesterday I got another letter, this time a notice of termination of the account with a request for the full balance or they will log me with credit reference agencies and call in the collectors!

 

How do I respond to this- I only have a few days before they shut it down!!!

 

help!

[slick132]

Send a copy of your complaint letter to whichever dep't sent the termination notice.

 

Tell them if they take any action before your Head Office dispute is resolved, complaints will be made to the FOS and others as necessary.

 

Send a copy off by fax with the paper copy to follow by post (Rec'd Del'y).

[Cornwall_Girl]

UPDATE-resolution...

 

Just had a call from Barclays Customer services following them receiving the complaint letter.

 

They've decided to reinstate the overdaft in it's entirety, and they've cancelled the monthly £8 account fee, and refunded my last charges into the account to bring me under limit!!

 

I can't quite belive it- I never dared hope they would.

 

It just shows what you can do when you don't just let them walk all over you.

 

Thankyou so much to everyone who gave me advice- it would never have been sorted without your help!

 

Eternally Grateful,

 

CG.

[slick132]

Hi CG and pleased to hear they have taken your complaint seriously.

 

Can you confirm roughly how much your default charges came to, and how much they have agreed to refund.

 

It may be that you should still consider seeking a refund of those charges which they haven't agreed to refund.

 

Until you decide what to do, don't sign anything to say that you accept anything in Full and Final Settlement of your claim or complaint.

 

Edited November 25, 2009 by slick132
typo

[Cornwall_Girl]

It's not that they've agreed to refund my request for charges... that's still being dealt with.

 

They've refunded 20-30 pounds accrued while this dispute was going on about the removed overdraft.

 

The rest... over a grand... is being looked at by a seperate department.