Stupid Mistake = Nightmare Barclays Loan Situation

[PatsyTheCat]

Hi,

 

I have a loan with Barclays with about an £8000 balance remaining. The APR is about 15%. I needed some more money for something (£3000) and decided to to apply for another loan with them. They agreed to this as long as I borrowed enough money to pay back the existing loan, so in effect this would be a top up loan. The rate for the new loan was going to be 29.9%. Foolishly I signed the forms. When I got home it dawned on me that I'd made a big mistake. If the loan ran it's full course I would end up paying almost £30,000 in total for the sake of an extra £3000! I no longer need the £3000.

 

My understanding is that I have the right to cancel this new loan within 30 days and revert back to the old agreement. I phoned them that night and asked to do this over the phone. They informed me that I had to take a letter into the branch, which I did the next day.

 

Since then I've been pushed from pillar to post trying to cancel this loan and revert to the previous loan. I've been told by various members of staff it should take 24 hours, 10 days, 3 days etc etc. I've phoned them and been into the branch numerous times. I get the impression (and they have in fact told me this) that no one knows how to reinstate the old loan. After another phone call tonight I was told that they no longer have any details of the old loan, what rate I was on, or the balance etc as this has now been canceled.

 

It's now been 2 weeks since I applied (and canceled) and the only thing I've received from them is details of the new loan including the first payment date which is fast approaching.

 

What should I do?

Am I entitled to cancel the loan and go back to my old agreement?

Should I pay the first payment on this new loan?

 

I'm really, really, really worried about this so any help anyone can give would be very gratefully received.

 

Thanks,

 

PatsyTheCat

[loopinlouie]

Be very careful, I was advised how to go about cancelling an abbey loan and they deliberately led me round the houses, then said too late to cancel and Ive been arguing about it ever since.

 

Please when write send by registered post or recorded at least and when phone them record the call. Try to get them to confirm they are aware of your request and when they first heared of the request from you.

 

It might help if they play silly buggars later on xx

[PatsyTheCat]

Thanks for the reply.

 

I cancelled the loan the very next day. Took a copy of my letter into the branch who forwarded it onto 'the right' department. As it happens the 'right dept' doesn't have a phone number. Staff in branch have made notes on what Barclays call 'note pad' and I've made 2 complaints about the length of time it's taking to get anywhere. Worryingly to date I do not have anything official from Barclays what so ever to acknowledge my request to cancel. Not really, sure what my next move should be - what would you suggest loopinlouie?

[loopinlouie]

Send a letter stating your request for confirmation that the loan is cancelled as you have heared nothing. I am no expert at all, just in my case was told to go inbranch who said no go and call head office, who said no go back to branch, who refered me to phone on the wall:mad: Went home and contacted them and heared nothing, then told we have no record of hearing from you inbranch or head office and the was going to say fun, but its been like treading water trying to get them to cancel it.

 

Anyhow that was abbey, but I would ring up the head office, tape the call and say again you cancelled it handed in letter to branch and have sent a follow letter by registered post. Get them to read back the notes from your last call and try and get them to confirm they are aware you have tried to cancell the agreement or go in branch and record the conversation on mobile phone or something, to back you up if they play ignorance later.

 

Once on tape, if they do not reply to your letters, you can complain to the fos and get them to tackle them.

 

But seriously I am no expert, some others may have some more advice to add, good luck xx

[pompeyfaith]

If you go into the branch again record the conversation on your mobile phone.

 

Put the phone in a top pocket so it will record the branch assistant clearly.

 

PF

[PatsyTheCat]

Thanks for the replies.

 

The complaints department have now phoned me and it looks like I have a big problem. They've said that I can cancel the new loan but I can't go back to the old one at the same rate. So this means that if I want to cancel then I have to pay them all the money I owe them from the old loan (£8000) in a lump sum OR I can apply again for the old £8000 that I already had but at the much higher rate OR I can just accept that I have to borrow the full amount and can't cancel.

 

Can they do this? Is this right? I feel like the old loan is being used to blackmail me into not canceling.

 

Can someone tell me what my rights are please? Or which official body I can go to that can tell me my rights?

 

Thanks.

[pompeyfaith]

In short NO they cannot do that they have to reinstate the old loan as it was you can make a complaint to the fos the sooner you do this the sooner the complaint is offically disputed while they sort it put the old monthly payments in a savings account

[pompeyfaith]

they say they do not have the old loan details this bull as they have to keep them for 6 years as per data protection act

[loopinlouie]

What is it about banks? You would think after all thats happened, they would realise in certain situations, to be grateful for small blessings. You would think they would be happy a customer has realised a mistake before it turns into a possible crisits which may lead to default and help out. After all you have done all withing their rules, it is them playing silly buggars xx

 

Put all what they have told you in wiritng, put that you are entitled to have the old loan reinstated and surely that is better than total non payment of all monies, that their actions might force on you. Say you will be making a formal complaint to the fos and if it came to a court case, you are aware any judge would look unfavourably on their actions.

 

Would they like original loan on origianl terms or 1.00 a month;)

[loopinlouie]

ps. I would also consider changing bank accounts now, as they might try ofset in the future, while you are fighting them.

 

It could also save you a lot of hastle if they start adding charges for you not paying the new loan ammount monthly.

 

Dont let them force you into something you dont want xx

[Conniff]

This is the type of thread that makes me angry. 30% when the base rate is 0.5% is loan shark rates.

 

Don't let them get the upper hand here, do as loopinlouie says and open a bank account at another bank so you can have your deposits/wages or whatever put into that.

 

You also need to take heed of the advice to put it in writing and not on the phone.

[loopinlouie]

This is the type of thread that makes me angry. 30% when the base rate is 0.5% is loan shark rates.

 

Don't let them get the upper hand here, do as loopinlouie says and open a bank account at another bank so you can have your deposits/wages or whatever put into that.

 

You also need to take heed of the advice to put it in writing and not on the phone.

 

I agree, I learnt to my cost that you cannot trust the banks and advice given on the phone, half the time they dont even make a note of the conversation, unless of course, they are selling something;).

[PatsyTheCat]

Thanks for all of your advice - very much appreciated. Will keep you posted.

 

PatsyTheCat