Barclays - Withdrawing Overdraft / Resolve Loan

[finchy38]

Hello, my first thread, just one of many problems I'm having!!

 

After being with Barclays nearly thirty years, I thought they might have trusted me by now.

 

I have a business account with an overdraft of £2000. A couple of weeks ago I recieved a call from a rude man at Barclays telling me my overdraft expired in Oct '09. I told him that was news to me. He said as my turnover of money through this account had drastically fallen over the last year, it was unlikely my overdraft would be renewed. He then said Barclays would be looking for payment to clear the overdraft.

 

Kick me when I'm down why don't you! I explained that my business had been very quiet for the last year, however, I still pay their quarterly extortion charges. I told him they can't expect me to cough up £2000 just like that. He said if my local business manager will not renew my overdraft, they would have to arrange a resolve loan. Needless to say they wouldn't renew it.

 

I've had nothing in writing from them, but they did leave a message on my voicemail this week asking to discuss this. I didn't ring back.

 

My question is, can I say to them I'll pay £100 - £200 per month until its cleared? Can they refuse this?

Can they say this is fine, then put an unreasonable interest rate on the balance?

 

Thanks in advance for any advice.

[slick132]

Hi Finchy and welcome to CAG.

 

A few years back, you'd have spoken to your Business Account Manager who would know you and your business well enough to make their own decision.

 

Now, the branch "manager" staff have so little discretion, there is little they can do without HO approval. Decisions about your a/c are made on the basis of the a/c statistics.

 

If you still have a working relationship with your "Business Relations Manager" (as I believe they are now called), get in touch asap and try to sort something out, before HO act on their own initiative.

 

Bear in mind that they are able to withdraw the o/d at any time and demand immediate repayment. They may also decide to close the business a/c and any other personal a/c's. So, although you may offer to reduce the o/d by £200 per month, they don't have to accept this.

 

Don't feel pressured into taking the Resolve Loan on any terms that you don't feel are acceptable.

 

That is why it's important that you try and stay in touch and, to some degree, in control.

 

[finchy38]

Thankyou Slick,

 

I did speak with my business manager about renewing the overdraft. She was quite sympathetic but said it would not be renewed. She said it is out of her hands and I should make an arrangement to pay it off with HO. She said they will probably offer a resolve loan, but couldn't give me any ideas on terms, interest etc. She also said if they want, they can demand payment immediately.

 

Well, at least I know what I'm up against!

 

Thanks again for the advice.

[slick132]

....quite sympathetic but said it would not be renewed. She said it is out of her hands

This is what I mean -she's supposed to be a manager but is really a HO puppet.

 

Put your offer to HO in writing, so you have a paper trail. They may not be so willing to fob you off, as they surely will in phone calls.

 

Good luck and keep us posted.

 

8)

[finchy38]

Update

 

I just recieved a TERMINATION NOTICE from Barclays Prank, (well... they are a joke), issued in accordance with Sect 76(1) and 98(1) of the CCA 1974.

 

It basically says they are terminating my agreement from 15/10/10 and is demanding full payment of my overdraft, nearly £2000. In the mean time no further drawings on the account will be permitted. Daily interest charges of £0.56 will accure from the date until full payment is made, assuming no change in interest rate.

 

It gives all the usual threats about how they may refer it to their debt collection team, may seriously affect my credit, etc, etc.

 

They make no mention about a resolve loan. I was told a couple of weeks ago by phone that I may be offered one.

 

It also states if I have difficulty paying this, I can apply to the courts which may make an order allowing me or any surety more time.

 

I would greatly appreciate any advice, should I ask for a resolve loan? They haven't said if the account will be closed either.

 

I can't believe they're treating me like this after nearly 30 years of their bad service.

 

Many thanks in advance.

[slick132]

Hi Finchy,

 

They haven't said if the account will be closed either.

They ARE closing the a/c by way of the Termination Notice.

 

Did you write to the branch or HO to try and negotiate as I suggested.

 

If not, you should do so now and offer to pay them what you can reasonably afford to reduce the o/d.

 

8-)

[finchy38]

Thanks Slick,

 

No I didn't write a letter, I'm not the best at letters!

 

Anyway, I phoned them today and luckily got through to a nice guy who was very helpful. I asked about a resolve loan and he asked what I could afford a month. I said £3-400. He said I wouldn't need a resolve loan if I can pay that. He said they can give six months to clear the o/d , which would work out just right at £300 per month.

 

He said they will not close my a/c providing I keep to the payment plan, however, no payments allowed from the a/c.

 

I know I should have phoned them sooner, but after the first call I recieved from them by a real a*'#hole, it just put me off contacting them.

 

It really is the luck of the draw who you get on the other end of the phone, I was lucky today!

 

Thanks for your help Slick, I need to start a new thread now about S.R.J. Debt Recovery chasing an AOL Debt, (which I don't owe!!).

[slick132]

Hi Finchy,

 

Glad to hear this has been sorted. I think it is far better to avoid having the a/c closed as this will always look bad on your credit file.

 

This shows that there are some good staff who are willing to help. Was this a UK call centre or an overseas one.

 

If you need help with letters on any other matters, please just ask - someone will give you the help you need.

 

8-)

[finchy38]

Thanks Slick,

 

This was a UK call centre.

 

I now need help with another problem. I have S.J.R. Debt Recoveries chasing a debt for AOL. I'm just trying to find out where to post the thread?

 

Thanks for all your help so far.

 

Kind regards

[slick132]

Hi Finchy,

 

Start a thread here if it looks appropriate - http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?151-Broadband-and-other-Internet-issues

 

8-)

[finchy38]

Hi Slick,

 

I've just opened a new thread there.

 

This is a great website, only wish I'd found it sooner.

 

Many thanks.

[BarclaysCollectionsStaff]

A business resolve loan would have been at the same rate, or lower than the existing rate on the account you hold with the largest balance.

 

Glad you were able to come to an agreement in the end.

 

 

* Any views expressed here are my own, and not necessarily those of my employers *

Edited November 21, 2010 by slick132
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