Orge vs BC **WON**

[orge]

Ok, as I see it there is no risk in relation to the Barclaycard debt, but the overdraft could complicate things. The worst case is that Barclays repurchases the overdraft prior to a refund which only part covers the balance. Then the clock would start ticking on a debt which was not far away from expiry. There are some technicalities on this debt, which is why I think they have not pursued it, but I would clearly prefer it to be Statute Barred.

 

I'll have a look at the dates tonight and see what looks best.

 

As another query, if the refund from Barclaycard more than covered the overdrafts and they chose to set-off, would I also be able to argue for the removal of those defaults?

 

Thanks,

 

James

[orge]

Ok, having looked at the options on my schedule, I think there are basically 4 possible claimable scenarios:

 

6 years

Original Claim (

6 years from Default

All the way to 2002

 

I'm currently hoping CI is accepted to calculate the interest, but this is a variable won't be know until a hearing. IF CI is accepted, I think there is a chance that they might buy back the overdraft for the last 2 scenarios, but the refund would clear it or leave me owing very little.

 

Am I right in thinking that I need to prove the default was ENTIRELY comprised of charges to argue for its removal? Based on all the known charges, this is obviously the case - there's over 1k of charges against a £500 default. However, the 6 year amount is about £45 less than the default (including CI), although the claim would be for more than the default when including S69 interest. As I've stated previously, I am far more interested in removing the default than a refund of the charges.

 

I personally think it would be quite fair to consider the default in the context of the 6 years of charges that lead up to it, even if they are not all claimable at this time. However, I'm not sure how this sits with the court process? What about the FOS?

 

Thanks,

 

James

[slick132]

Can you confirm approx figures for:-

 

Debt for BC a/c.

 

Possible reclaim for BC penalty chgs including compound interest at 24.9%.

 

Amount of bank o/draft.

 

[orge]

Barclaycard account is 500.

Overdraft is 2500.

 

Charges and CI total the following, depending on how far back you go:

4.5k (2002)

2.5k (2004 - 6 years before default)

700 (Original Claim)

450 (6 years)

 

Thanks again for your help!

 

J

[orge]

Did you see that last post, Slick?

Ta!

 

J

[slick132]

Hi Orge and sorry I missed it.

 

As I see it, you could try to make the full reclaim with 24.9% compound int't. You could reclaim all penalty charges including those older than 6 years. You would also seek the removal of any remaining adverse CRA markers.

 

At worst, you risk losing the costs of the claim being the claim filing fee and possibly the DQ fee. But the possible benefits should outweigh the possible loss.

 

What are your thoughts.

 

[orge]

Hi Slick,

 

Thanks for the reply again.

 

Yup, I agree. Doesn't seem to be that much to lose, tbh.

So... Preliminary letter sent today by recorded delivery.

 

J

[SabreSheep]

Just some ideas to help you further down the road.

 

1)For each case create a seperate folder on your harddrive to store everythign case related.

 

2) Scan into your computer a copy of all correspondence and save to that file. I use a naming system so I can keep things in order and organised. EG Date-Comoany-Whatitis-a/b/c etc

 

3) When posting print a copy of the letter and staple to it the proof of postage. If you areposting to get a signature staple to the back of the letter the proof of delivery. SCAN in a copy of your letter showing the proof of postage.

 

4) Keep a file and keep things in date order. I have a cover page that lists actions taken and deadlines that have to be complied with by me and the defendent.

 

Doing all this means I have a separate copy of everything. I also have it electronically saved which if you need to prepare a bundle later means you have a lot of it already prepared.

[orge]

Barclaycard have come back with a flat rejection well before the expiration of the 14 day limit. They have stated that this is their final response to my complaint.

I presume this means I can issue them with an LBA now or do I have to wait until the 14 days is up?

 

Thanks,

 

James

[slick132]

Update the spready to get a revised interest figure and include it in the LBA which you can send them now.

 

[orge]

Sweet!

Will get on that this weekend.

 

J

[orge]

Was just looking at my LBA/Spreadsheet of charges. I had initially compounded contractual interest up until the date they closed the account (this was also when they stopped charging me interest, as I can see this from the records they have given me). Is this correct? This means that there would be no change between my prelim claim figure and my current one.

 

Thanks,

 

J

[orge]

Hi Slim,

 

Did you spot the post above?

Thanks,

 

J

[SabreSheep]

OK a lot depend on the wording of your complaint.

 

If you are claiming Interest in RESTITUTION it does not matter what or when they applie dinterest to your account. Reason being is you are claiming unlawful earnings they have made by taking your money through charges unlawfully.

 

IF your complaint is regarding contractual interest then it has to reflect what interest has been charged to you and would therefore need to take into account when they stopped charging you interest. You would also have to make sure you calculated all the different rates interest applied to the charges. For that reason alone is why I decided to go with the Interest in Restitution approach as it is far easier to justify

[orge]

Hmm... I think the wording of the template I used implies CI:

 

"I calculate that you have taken £xxx plus £xxx which you charged me in interest on the sum you have taken. This has been calculated at a rate of 24.9% compounded monthly up until closure of the account on 11/2/2010"

 

However, in hindsight I agree that restitution is easier to justify. Would it be possible/worthwhile to backtrack, seeing as I am only at the prelim stage?

 

Thanks,

 

J

[SabreSheep]

Slick and Andy would be the best ones to advise.

 

My first prelim stage I only asked for the charges + 8%

However then after reading I DID redo my prelim after they rejected the offer to include interest in restitution at 29.99% Compound Interest. (Using 24.9% is probably better) My rate is slightly harder to justify if it goes to court but bearing in mind Barclaycard Initial has an opening APR of 34.9% Apr I think I can justify it.

After my new prelim and LBA I put in the claim form. Barclays have offered 50% of my claim which I rejected. I am now waiting on mediation.

 

 

My thread with Barclaycard is ongoing http://www.consumeractiongroup.co.uk/forum/showthread.php?423713-Barclaycard-Link

[orge]

Out of curiosity, I plugged todays date into the compound calculator and it triples my claim up to about 12k@24.9% and it's over 30k@34.9%!?... Pretty big numbers and a lot of incentive for them to go all the way. I presume that this would also lose it's small claims status? However, I guess there is more incentive for them to come to a "compromise", although I'm under no illusions they will still make me work for that.

 

As I've repeated previously, my main objective is to clean up my credit file and any cash is a bonus to compensate for making my life a bit more difficult over the last few years.

 

Thanks,

 

J

[SabreSheep]

Ah yeah those figures blow it out of the small claims court. £10k is maz

Dangers with going outside the small claims would be possible exposure to their costs. You would need Andy and Slicks advice there.

[slick132]

Hi Orge,

 

We suggest you claim compound restitutionary interest from the date of each penalty up to the claim date. The a/c closure date should be ignored.

 

The LBA should have said you are claiming penalties of £xxx and restitutionary interest of £xxxx. It shouldn't refer to reclaiming penalties and interest charged thereon..

 

Can you tell us what the claim for penalties and interest would be if you claimed 19.9% compound interest. Making a claim over £10K may well put the claim on the Fast Track bringing with it a greater exposure to costs.

 

Just remind me, over what years were the penalties incurred and what is still owed on the a/c.

 

[orge]

Ah, my bad. I'm not sure where I got the template from and I must have missed the nuance between restitution/CI. Have only sent prelim letter so far, fyi.

 

The claim would be ~£7.5k with an interest rate of 19.9% and the charges are from 2002-2009. There is only £500 on the balance, but I also had an outstanding overdraft of ~£2.5k with Barclays (this has been sold to a DCA).

 

Thanks,

 

J

[SabreSheep]

Ah, my bad. I'm not sure where I got the template from and I must have missed the nuance between restitution/CI. Have only sent prelim letter so far, fyi.

 

The claim would be ~£7.5k with an interest rate of 19.9% and the charges are from 2002-2009. There is only £500 on the balance, but I also had an outstanding overdraft of ~£2.5k with Barclays (this has been sold to a DCA).

 

Thanks,

 

J

 

Sounds like going for that would meet your objectives. You would also be demanding they remove the debt form your credit files as well as the interest charged on those unlawful charges mean the information is not accurate to how YOU managed the account

[orge]

Should I change this in my LBA? If so, what's the best way to do this - with/without bringing their attention to the change? Alternatively, should I submit another prelim letter? Thanks, J

[SabreSheep]

Did you see that last post, Slick?

Ta!

 

J

 

New Prelim.

[orge]

New Prelim.

 

I figured that would prob be the case - just start a new one with no reference to the previous? Ta, J

[slick132]

Yup, start with a new Prelim, amended to say :-

 

"I also require that all data reported to CRA's for this account be removed on the basis that the account balance is made up wholly or significantly of penalty charges, rendering the CRA data inaccurate."

 

Also, amend the Prelim as per Sentence 2 of my post #94 above above restitutionary interest.

 

Post a draft of the Prelim here so I can check it before it goes off. You need to get it right or Barclays will not take you seriously.