Old Barclays Bank Accounts

[orge]

Hi,

 

I've got two barclays bank accounts that were closed in 2009 and they called in the overdrafts.

 

At the time, I was complaining about charges, although I had not gone as far as a court claim.

 

Latterly, I have settled the smaller of the accounts to its full value, but I have not paid anything to the other since it was closed.

It has now been passed on through several debt collection agencies.

 

At the time of closure, Barclays registered two defaults with the CRAs

and, as my financial situation has improved in the last few years,

these are now causing me some inconvenience.

 

I have discussed removal with various customer service reps over the years, but they have been unwilling to concede.

 

I previously believed that Barclays had correctly followed the necessary processes before registering the defaults,

but I think there's a chance they only sent me a termination notice and there is no specific mention of a default

- I still have these letters and believe I would have kept anything else sent at the time.

 

If I'm correct about this, I understand this would be grounds for removing the defaults.

 

However, since the debt has been sold on but is still outstanding,

I'm not sure whether there would be the possibility to issue a further default with the correct documentation?

 

If so, it seems like the best strategy would be to attempt a percentage settlement with the collection agency (~25%)

and simultaneously send in a request for the default documentation?

If the debt was settled with the collection agency, I guess there is no way that a further default could be issued?

 

My other question is whether a written offer of settlement constitutes acknowledgement of the debt

and would start the clock again on the statute of limitations?

It would seem prejudicial if it did, but I would like to make sure before I start going down that route.

 

I had previously been thinking of eeking it out until the 6 year mark, as it's only two more years.

However, if there was the opportunity to clear these 2 defaults off my file for a reasonable cost, I would definitely go for that.

 

FYI,

I also have 2 other accounts that also show defaults from the same time (BT and barclaycard).

 

I think there may be similar options with these, so it makes sense for me to take them all through the same process now

- I will start separate threads if I need help with these.

 

Thanks,

 

James

[dx100uk]

once a debt is defaulted, that's it.

unless the previous one is removed

then it makes no odds if a second is registered.

 

i'd be very careful about offering F&F on any debt

esp to a dca.

 

there IS an advantage, that you could stipulate, in writing, that you want

the default removed as well as ANY negative data to the DCA IF they own the debt.

 

many have been known to do so.

 

however an F&F will ack the debt, but if its marked SETTLED and NOT partial settlement, you'll be ok. debt gone.

 

the other aspect to consider is the amount of the debt

if its inflated by unlawful PENALTY charges

those do need to be questioned.

[orge]

Thanks for the quick reply!

 

I have a couple of questions:

once a debt is defaulted, that's it.

unless the previous one is removed

then it makes no odds if a second is registered.

 

Does this mean they would be able to add a subsequent default (assuming I was able to get the old one removed)?

 

I will be v careful with settlement and the dca. I will make sure everything is in writing and I'm aware that I need to be v mindful of loopholes they might use to take payment and not settle the debt. Does the offer of f&f constitute an acknowledgement or is it payment?

 

Also, I thought the outcome of the OFT test case had pretty much blown the options for reclaiming bank account charges?

 

Thanks,

 

J

[dx100uk]

correct.

 

if the org default is removed,

then ideally were a 2nd to be issued,

it should correctly reflect the true default date[3rd missed payment - see the ICO guidelines]

 

as stated an F&F acks the debt

but if the debt is marked SETTLED & ALL negative data for the debt [late/default etc]

are removed, theres nowt for them to come back to you on anyhow!!

 

as for the bank charges, still doesn't remove the fact that the charges were unfair.

particularly now under BCOBS.

 

all the FSA [FCA] said was that it would not investigate complaints of charges under £12

 

.............

 

your issue here is you need/want the defaults gone?

mortgage time?

 

it might well be that sadly you have to pay for that privilege.

[orge]

Ok, I think it's worth proceeding with this but I will tread lightly regarding the f&f. First stage is with Barclays anyway.

 

I actually have a mortgage already, although I am considering a second property. I'm lucky to have a good job now and these defaults are the remnants from a period of time when I was not so fortunate. I would like to close the door on this past and I don't mind paying for the piece of mind (assumng I get the benefit of removing the negative credit history).

 

Thanks again,

 

J

[slick132]

Hi Orge,

 

Getting Default data removed is hardly ever easy or straightforward, particularly with a bank a/c, as opposed to a credit card a/c.

 

[orge]

Thanks slick,

 

This is probably why I haven't looked apthese too much over the last four years.

 

.. Am I right in thinking there may be a technical point if they never issued a default notice though?

 

The letters I have in front of me clearly state termination notice and,

whilst they do have balances,

consumer credit act and a few other commonalities,

there is no specific mention of a default.

 

The closest they come is a section that mentions they will register the accounts with cras and the consequences of this.

 

J

[slick132]

Hi Orge,

 

Defaults is not my best subject so do the necessary research before deciding what steps to take.

 

Isn't it possible that your CRA files would reflect your failure to pay without an actual Default Notice being issued.

 

Personally, I think it highly unlikely that any deal can be made with the bank to remove the default status reflected on your CRA files. Even if you settle the remaining a/c in full, the CRA data would surely remain for the normal 6 years to accurately reflect the delinquent state of the a/c.

 

The only remedy I'm aware of is if the amount shown as arrears contains, or is made up of unlawful penalty charges. This is easier with a credit card a/c due to the (we allege) unlawful nature of the penalty charge. But proving the same with a bank a/c is quite different.

 

[orge]

Good points and not ones I had thought of.

 

I've just looked at the reporting of the accounts

and, for the large part,

there is not very much information apart from the defaults themselves.

in fact, it doesn't look like their status was reported at all until the accounts were closed.

 

What is the current angle on reclamation of charges?

 

I don't really understand how these can still be pursued in the case of current accounts?

 

Thanks,

 

James

[slick132]

What is the current angle on reclamation of charges? I don't really understand how these can still be pursued in the case of current accounts?

 

Exactly, the Supreme Court case decided that default charges on bank current a/c's were not challengeable using UTCCR.

 

Even if you reclaim charges under Hardship or Financial Difficulty provisions using The Lending Code or BCOB's, it is likely that any refund by the bank would be a Goodwill Gesture and they would NOT admit their charges are unfair or unlawful.

 

[orge]

It's almost as if they are watching... Just got home to find an offer of full & final settlement for 50% of the balance. The letter is from sigma red.

There's about 10 days to run on the settlement offer. What are the pitfalls? I guess the first thing is to check they are responsible for the account?

 

J

[dx100uk]

ho ho ho discount letter means there is something WRONG with the debt

 

that's those PENALTY charges

 

dx

[orge]

Or the lack of a default notice?

 

Reading more on this, I'm feeling like there is an angle. I think the way forward is to SAR Barclays for the statements, along with the default and debt reassignment letters for both accounts. If it looks promising, I will then press through for default removal on the settled account and see how I get on (nothing to lose here?). If that works out I will try to settle the other account and pursue the same route for default removal.

 

J

[slick132]

Hi Orge,

 

Is the offer to settle at 50% of no interest, or not possible.

 

I think you are being very optimistic in thinking you have the chance to get a default removed but I wish you well.