Barclays Repayment agreement

[purp751]

Hi folks, just a quick one, we have an overdraft on the barclays personal account, which was taken out a few years back due to circumstances,

 

they told us we could only have one if we upgraded to a premier account at £25 per month, which we did as didnt have any other options at the time, this gave us a£1000 od with a £500 reserve,

 

what we were not told at the time was that they charge £22 every 5 days once you go into this reserve, which once my wifes hours were cut we did and then couldnt get back out of it as it was accruing £88 a month in reserve usage charges on top of the £25 per month fee for the account plus od interest,

 

anyway last september I set up a repayment agreement, the agreed to freeze charges and interest and I would pay £100 per month with a final payment of £150 this month to bring it back into the original overdraft limit which I could then pay off as and when we can,

 

however when checking the account the other day it appears they are still charging interest so we are over the agreed limit at the point where it should be at the moment,

 

rang barclays to check this and was told the agreement level is where it should be but due to not paying in extra to cover the interest it is actually over the reduced od limit, I was also told they cannot freeze the interest and someone had told me incorrectly at the time of making the agreement,

 

unfortunately having found the original agreement letter it does not mention interest in it, is there anything I can do?

Edited February 2, 2013 by slick132
split into paragraphs so it's readable

[slick132]

Hi Purp,

 

There are 2 ways you could approach this.

 

If you're having Financial Difficulty and have an overdraft, The Lending Code offers you protection. The bank should reduce or stop interest and charges - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

You may also have protection afforded by the BCOB Regulations - http://www.consumeractiongroup.co.uk/forum/announcement.php?f=7&a=220

 

You will get poor results from speaking to Curt'r Svs and you need to keep communication in writing only, so you have a paper trail if needed for complaints or court action.

 

[purp751]

Hi Slick,

They did suspend the charges when we entered the repayment agreement, but they have continued to charge interest although i was told that would be suspended too until we got back to the original overdraft level at which point it reverts to a standard od,

 

it would be nice to get the charges back if possible as it would probably total enough to clear the od and allow me to close the account

Edited February 2, 2013 by slick132
split into paragraphs so it's readable

[slick132]

I've split your above posts into paragraphs so they're easier to read.

 

if you want the charges back, read both of the links I put in my post above.

 

Decide which you think will be your best option, based on your circumstances, and write to them seeking a refund of charges and interest.

 

I think you should complain citing The Lending Code first and, if that fails, tell them you'll take action using BCOB Regulations and the county court if necessary. Only threaten this if you're willing to take such court action.

 

Edited February 2, 2013 by slick132

[purp751]

Thanks for that, are there any specific sections of the lending code I should quote in the letter? thanks

[slick132]

Hi Purp,

 

Have you read the Article and draft letter in the first link in post#2 above.

 

The relevant sections of The Lending Code are in there.