Barclays Current Account Debt - Advice Needed

[albertini]

An agent of Barclays contacted me about a debt for £750. I sent off the CCA letter and have today received a letter back saying that the alleged debt refers to a bank current account.

The DCA claims that a bank O/D is exempt from part V of the CCA so no signed documents are necessary from them.

Now the debt is £648 but they are actually claiming £750. Within this figure (they have sent me statements) are around £400 of £25 referral fee charges.

Can I legally take off these charges as being excessive?

Also the debt has risen by over £100 from when the account was closed. I presume this is interest and charges. Are they allowed to charge this under law? Can I fight these charges?

Does anyone have a stock letter reply that they could let me see?

Can anyone offer any general advise in how to fight this and if I’m missing anything.

[moggieb]

Hi,maybe a mod could transfer this to the Barclays Bank forum-loads of help available. The peeps there are great.

[bottomburp]

Bump pending move

[HSBCrusher]

thanks BB, job done.

[slick132]

HI Albertini and welcome to the Barclays forum.

 

I'm checking on how you should proceed and will come back to you asap.

 

Slick

[saintly_1]

What I would suggest doing is start a claim for the charges back have a look at this http://www.consumeractiongroup.co.uk/forum/faqs-please-read-these/31460-example-step-step-instructions.html as to how to go about this

[slick132]

Hi again,

 

As Saintly says, your way forward is to reduce the amount you owe the bank by reclaiming bank chgs. The DCA is partly right in what they say - the debt is more likely to be enforceable because it's an o/d, not a Credit Card or other loan and the rules are different.

 

This may be a useful link to read - http://www.consumeractiongroup.co.uk/forum/general-debt/108467-basic-introduction-consumer-credit.html

 

You need to put the a/c in Dispute so you can stop/slow the DCA. Start this by listing the chgs you can reclaim.

 

Also, read here for further guides - http://www.consumeractiongroup.co.uk/forum/general-debt/

 

Come back if stuck - I'm short of time just now.

[albertini]

Been away, thanks very much for all the advice. Will have a look at all this and revert oncei have digested it all.

[albertini]

Having written to the DCA I have today had a letter back from them. Their general points (and my questions are):

1) They are unable to provide the original opening letter containing terms and conditions and have suggested I contact Barclays direct for this.

(is there any validity in pursing this information? Is it relevant to help me in this case or should I just leave it?)

2) The original debt was £674.92 but the balance passed onto the DCA was £720.56. they say that £20.64 of interest was added plus an administration fee of £25 from Barclays, then a £25 administration fee from the DCA.

(Are these charges legal and is there anything I can do to contest these?)

3) They will not agree that Barclays charges are illegal and refer o the test case being considered by the High Court.

(I know of the case but is it true DCA’s / banks are not crediting these amounts?

4) They will accept a lump sum offer of the amount for £374.92 which is the amount less the charges.

( I cannot afford this in one lump)

Any general ideas for a strategy going forward?

[torigirl_uk]

Hey!

Could you ring them again and ask if the 'lump sum' be paid by monthly payments rather than in one go? I'm sure they would prefer to get the money eventually rather than not get it at all! Maybe you could lie and say that you are considering going bankrupt and having all debts wiped!!! That will probably get them to except!!!!!

There's probably much better ideas that will come flooding in, but its just my opinion and I suppose it wouldn't hurt to try!

Good luck

Tori:)

[albertini]

Thanks for that, i am seriously considering bankruptcy anyway.

 

I've made them a lump sum offer of £50 which they've rejected.

 

I want to know what kind of ground i stand on before i go forward.

 

Like anyone i want to try and get the best deal i can.

[Curlyben]

NEVER ring a DCA as they will say anything to secure payment.

 

Well as they are being silly about this I would throw a last letter at them.

 

Formal Complaint

Letter before Action

 

 

Dear Sir/Madam,

 

I refer to your recent letter and telephone calls.

 

As holders of a Consumer Credit Licence you are obliged to comply with the Office of Fair Trading Guidelines on Debt Collection. I would therefore be obliged if you would provide me with an explanation as to why you are attempting to collect on an alleged debt which is disputed with **BANK NAME**, and has yet to be resolved.

Since this is considered an unfair practice and contrary to the OFT Debt Collection Guidelines, you should consider this letter as a formal complaint, and provide me with a copy of your complaint resolution procedure.

 

I also require you to confirm that you will now comply with the OFT guidelines, and will not attempt any further collection activity whilst the dispute is unresolved.

 

Should you fail to provide me with the required undertaking within14 days, I shall report your actions to any such regulatory authorities as I see fit.

 

Take notice that I will not discuss this matter on the telephone, and all further communication must be in writing. Any further telephone calls will be perceived as harassment, and dealt with accordingly.

 

After taking advice, I am of the opinion that your continued pursuit is in violation of the Administration of Justice Act 1970 section 40, Protection from harassment Act 1997 section 3 as well as breaching a number of the OFT Collection Guidelines.

 

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you would prefer to do this than merely respond with standard letters and leaflets.

 

I would appreciate your due diligence in this matter.

 

I look forward to hearing from you in writing.

 

Yours faithfully

[torigirl_uk]

Is the account in dispute have you wrote to Barclays asking about the charges and getting them back?

[albertini]

Well Barclays have sold this debt onto the DCA. They have provided statements etc which show the debt is mine but no original letter.

 

I am wondering if they can apply these charges if they can't provide an orignal letter saying they would charge them.

 

Although of course if i raise this what's to stop them simply recreating one now?

 

I have offered them £50 so if i send CB's letter will that contradict my offer of £50?

[torigirl_uk]

They would probably tell you about those charges in their T&C's when you first opened the account. Helpful Bug**rs!

Maybe it would contradict your offer, but really, all you've done is seek advice and thats the latest/best advice you've got, so you're using it! Your offer would then become redundant.

[torigirl_uk]

Obviously the above is assuming you want to send the letter:)

[albertini]

of course!!

[saintly_1]

Hi albertini

 

Have you started the process of reclaiming your charges from the bank ?

[Curlyben]

Albertini, I assume your "offer" was by phone, if so don't worry about it.

From NOW on keep everything in writing ONLY !!!

 

Send my letter and see what they have to say for themselves.

[slick132]

Hi Albertini,

 

Saintly's right to ask this.

 

Don't want to contradict CurlyBen - however, I would NOT sent the letter to DCA unless you HAVE started to reclaim the bank chgs.

 

Surely the chgs reclaim has to be started by you first, THEN the chgs are in dispute and you can send CB's excellent letter.

[Curlyben]

Yep dead right.

Get a SAR into the bank and get the reclaim started.

THEN post my letter

[albertini]

Thanks for all the advice but I am a little confused.

I have already sent the “show me what you’ve got” letter and received a reply with documentation including deed of assignment and statements.

They have provided bank print outs of the history of the account but they have been unable to locate the original account opening letter and terms and conditions.

My understanding from the debt forum is that current account debts are different to general loan / credit card debts under the CCA and that the burden of proof is much lower.

As such by providing statements it is not worth my while contesting that the account is mine. (Is that correct?).

In relation to the charges should I attempt to reclaim from Barclays even though the account is closed and it is has been sold onto the DCA?

Barclays have rebuffed any contact and said that I should go through the DCA asa the debt has been sold on.

The DCA is saying “sorry you can’t reclaim any charges due to the bank charge test case”.

The bank and the DCA have added £25 each “administration fee” to the account along with interest applied by Barclays but again are prepared to waive this down to the original balance of the account.

They will however drop the balance to the exact amount that the debt was without charges (around £340) which is obviously a starting point.

However this amount is still beyond my current means and I’m looking for any other angle that I’ve missed to gain an advantage with these parasites.

[slick132]

Hi Albertini,

 

Don't pay the DCA a single penny !

 

My maths makes the debt £340 and your unlawful penalty chgs £400, hence they owe YOU money and the DCA can clear right off. The Bank and the DCA are talking out of their backsides when they say you can't reclaim the charges.

 

Follow the Reclaim Charges Guide (in the 1st link below my name) and get the process started.

 

Fill in a spreadsheet to total all the bank charges you will reclaim (this is your Schedule of Charges) and send it off to Barclays with the Prelim Request letter.

 

As soon as that is done, THEN you can send the DCA a letter adapted to reflect your case.

 

I'll come back with that IDC but please get on with making your Reclaim just now.

 

Slick

[slick132]

Back again for part two......

 

After you've done the letter to Barclays, adapt this letter and send off to the DCA. Do not pay them anything and ignore any phone calls they make to. Do not call them for any reason - just tell us what they say when they contact you.

 

Sorry if the font size differs - can't help it.

 

DCA Name

Address.......................................................... Date

 

Dear Sir/Madam,

 

ACCOUNT IN DISPUTE

Your ref: xxxxxxxxxxx

 

Thank you for your letter of **DATE**, the contents of which are noted.

 

I am disputing the debt with Barclays due to unlawful and unreasonable bank charges. As such, therefore, I consider this account to be in dispute and no further action or payment shall be made until this matter is resolved, as per OFT Debt Collection Guidelines Section 2.8k "not ceasing collection activity whilst investigating a reasonably queried or disputed debt".

 

This process may take some time, due to the Office of Fair Trading's test case, but I will try to expedite this issue as a matter of urgency.

 

I hope that you will enter into a sincere dialogue with me about this matter and I am writing this letter to you on the assumption that you would prefer to do this than merely respond with standard letters and leaflets.

 

I would appreciate your due diligence in this matter.

 

I look forward to hearing from you in writing.

 

Yours faithfully,

 

Albertini

[albertini]

Thanks for the help but let me clarify.

 

The DCA was originally claiming £748, but the actual debt to Barclays was £648.

 

With the charges off the actual balance is the £340.

 

The DCA will take off the charges ONLY if i pay the full £348 in one full payment which i cannot afford to do.

 

They are saying that if i do not pay in full the charges stand.

 

Now i know this is bow locks but is there anyother legal instrument i can use to screw them down even more?

 

Bearing in mind the debt with charges off is £348 i have offered them £50 in full and final and they've rejected it and refered to their £348 in full one payment offer.