Barclaycard part payment shenanigans

JonG · 5th March 2007, 10:29

Has anybody else had the same problem...

Barclaycard offered me payment of £170 as a full and final settlement figure.
They credited my account the £170.00 and then reduced my credit limit accordingly. (I am maxed out on Barclaycard). I turned this down the £170.00 accepting it as a part payment. (I am due £500) Barclaycard refused this as part payment and removed the credit from my account - leaving me £170.00 overdrawn on my credit card!!

Can they do this? Has this happened to anyone else?

As what to do next: I will fill out the court forms (moneyclaim) but will I be further charged for being overdrawn?

Glenn UK · 5th March 2007, 11:03

JonG

Have you read your terms and condtions? I suspect that in theory yes they can do this, ie reduce your credit limit.

have you written to them disputing the balance of the account formally?

If not i would do so, and i would remind them that thier actions would appear punitive in nature and that you will be reclaiming any interest and charges incurred as a result of their actions.

You might like to also forward a complaint to the FOS as well.

HTH

Glenn

JonG · 5th March 2007, 13:19

I will complain, for all the good it will do me!

I think now, as my dislike to barclaycard is quite high, I may as well go and add on the contractual interest rate as opposed the 8%...

However from reading on the forums there seems a lot of confusion over the contractual rate - mainly because it changes year to year. Where exactly can I find the contractual rate - is it attached with the statements?
Is there an easy way to work it out?

can anyone help?

Glenn UK · 5th March 2007, 13:28

Jon

The contractual rate is published on their site and there will be one related to the type of account you have.

by way of encouragement they (barclaycard that is) paid me the charges, debit interest and contractual interest plus costs.

HTH

Glenn

JonG · 5th March 2007, 13:44

Thanks Glenn

However the Barclaycard site whilst informing you on todays rate does not inform you of the previous rates. I'm sure the rate has changed over the last 6 years!
If I contact Barclaycard do you think they would breakdown the contractual rates for all the charges I have obtained (at the times of the charges) They haven't been very helpful so far!

Can I just claim todays rate for charges that have applied 6 years ago?

Glenn UK · 5th March 2007, 13:47

Jon

youre right it does only give you todays rates and thats what your charging them.

just to make sure were both on the same page as it were.

I claimed back

1. the charges i paid
2. debit interest i paid (this was estimated using MINDZAIS spreadhseet)
3.additional contractual interest at the cash advance rate applicable for my card. I simply took the rate from their site as of the date i sent my letters off.

HTH

Glenn

JonG · 5th March 2007, 14:06

Okay, so the contractual interest is the credit cards % interest rate (present day)

Debit charges (statutory interest?) is the amount of charges you have been levied through going overdrawn - which will probably be at a higher rate due to being unauthorised? - ie, over your agreed limit.

Downloaded Mindzais -wil hopefully clarify.

Ta!

JonG · 5th March 2007, 14:31

After looking through the forums it seems this is what I want to claim:

1. The original penalty charges;
2. The interest we have been charged on those penalty charges;
3. The interest that we are NOW charging the bank for taking those penalty charges from us:
4. The interest that we are NOW charging the bank for taking interest on those penalty charges from us.

The excel contractual interest spreadsheet works this all out for you, (I think - I aint looked yet) but I believe this is to be used in conjunction with bank charges not credit card charges.

Can anyone clarify?

Glenn UK · 5th March 2007, 14:43

JonG

What you are saying is correct re what you can charge.

I used MINDZAIS spreadsheet and this is for bank charges but hey Barclaycard, MBNA never moaned about it.

in truth the ability to calculate accurately the a mount of debit interest charged is a bit hit and miss in my view. i am not criticising anyones work in this area but i know form trying it myself its hard.

In truth i don't think it will matter a great deal if you use the same sheet i did from MINDZAI.

As an aside if you are going to claim the additional contractual interest based on their unlawful removal of your money then you should do some research if you haven't already, it can be quite confusing and complex.

HTH

Glenn

JonG · 5th March 2007, 14:50

Thanks Glenn

I'm in no hurry. Best to get it right then to screw it up!
I'll look into it to clarify what I am doing and how i'm going to do it.

cheers, Jon

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