Barclaycard/Mercers - Getting Started

[Mockenrue]

Hi all

 

I have a £3.5k BC balance with which I've got into arrears. The scenario is familiar to many I'm sure: after getting into financial difficulty I struggled to maintain the minimum payments (which only barely covered the interest and charges anyway); I wrote to them explaining the situation but this fell on deaf ears and sure enough the threatograms and default notices started arriving from Mercers. They've been regularly texting and trying to call me, but I've been ignoring them.

 

Since finding CAG I'm a lot more clued up than I was, but I'm still not 100% sure how to get started. I'm not trying to avoid the debt but as I've seen in a lot of other cases my arrears situation hasn't exactly been helped by the interest and charges applied to my account over the years and I wish to claim them back. I've read the guide on here and after I've calculated the exact amount of charges and interest (I'll post them up here) I'll start the ball rolling.

 

As I understand it I need to send a S.A.R. to BC, and then inform Mercers that the account is in dispute. Is this right? As they are BC's in-house 'pet' DCA, do I need to send them a CCA request too? I've also read that Mercers' default notices aren't worth the paper they're printed on - is this true?

 

Any help would be greatly appreciated.

[slick132]

Hi Mockenrue and welcome to the BC forum.

 

Mercers are BC's in house collection company.

 

If you don't have all the statements for the last 6 years, send BC an SAR and £10 fee.

 

If Mercers are being too much of a pain, you could send them a CCA request and £1 fee to see if BC have a valid Credit Agreement. If they don't, they should stop demanding pay't, add no more charges or interest to the a/c and remove any Default markers made on your credit records.

 

I note what you say about wanting to repay the main debt. You can but at a rate that suits you and they should refunds the charges to your a/c and reduce the overall debt.

 

Mercers Default notice will still show up against you on any CRA files.

[Mockenrue]

Thanks for the welcome slick.

 

I have kept all the statements since opening the account back in 2003, so I guess I don't need to send a S.A.R then.

 

I'll go through them over the weekend, add up all the charges and post them here. I suspect they will significantly reduce the balance if and when they are refunded.

 

I'll send the CCA to Mercers on Monday. Thanks for the advice and clarification.

[slick132]

Hi Mockenrue,

 

If you just want to reclaim the charges, BC will refund them to the a/c after perhaps a little exchange of correspondence. Use the Credit Card - Simple spreadsheet from here to list the charges - http://www.consumeractiongroup.co.uk/forum/bank-templates-library/182-6-interest-calculation-spreadsheets.html

 

If you are up for a full-on fight, you could claim back the charges and interest at the contractual rate which will significantly increase the amount of your claim.

 

However, BC will defend this right up to court so you'll have to know your stuff. Read here for more info - http://www.consumeractiongroup.co.uk/forum/bank-templates-library/145027-interest-tutorial.html

 

Come back with any Q's.

[bazaar]

Also, when you check statements, see what interest rate they charged. You may have lost any 'preferential rate' when they say you defaulted. This is in effect a penalty charge rate. (probably around 20 - 3- %)

[Mockenrue]

OK, will do. Thanks.

[Mockenrue]

CCA request received last week and they're still trying to call me a couple of times a day at least.

[slick132]

Hi Mockenrue,

 

I'm afraid they'll carry on doing this.

 

Don't get stressed about it - either ignore their calls or tell them to write a letter and you won't discuss the matter on the phone at all. Then hang up.

[Mockenrue]

Thanks. Whilst it's irritating and unwelcome I'm actually past the point where I'm losing sleep over it. They only have my mobile number and that's set to accept calls from certain numbers only, so when they ring me they just get a busy tone. They used to leave automated messages but don't seem to now.

 

If they start trying to call me at home they'll be getting the harassment letter sharpish.

[slick132]

...............I'm actually past the point where I'm losing sleep over it.

I'm glad to hear this.

 

The DCA's have little regard for the OFT Guidelines on Debt Collection (see the Link to this in my signature), but they'll get the message eventually.

[Mockenrue]

I've just received a text message from Mercers which reads as follows:

 

"Do not ignore this message. One of our representatives may visit you at your home address. Call immediately..." etc. etc.

 

More scare tactics or do they actually follow up on this?

 

Time to fire this off to them do you think?

 

Dear xxxx

 

Account Ref xxxx

 

Please be advised that I will only communicate with you in writing.

 

And furthermore, should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make an appointment with you.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v. Sheppard and Short Ltd [1959] 2 Q.B. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and if you do so, then you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance.

 

Yours faithfully/sincerely

 

(Letter template courtesy of 42man )

[banker_rhymes_with]

Hello Mockenrue!

 

More scare tactics or do they actually follow up on this?

 

It's most likely scare tactics, but Barclaycard/Mercers do use a bunch called ScotCall, and they tend to call. Unlike many others, if they get called in, they will send out one of their local bottom feeders to visit.

 

Obviously, tell them to Foxtrot Oscar if they do pitch up, but better to get the No Visitors Letter off to Mercers ASAP. That will make it clear that sending anyone out is just not acceptable.

 

Time to fire this off to them do you think?

 

Yes, absolutely. The sooner the better.

 

Make sure it goes at least Recorded Delivery, preferably Special Delivery as that is more reliable in terms of being able to see that Delivery was made and logged by Royal Mail.

 

Then if anyone does pitch up, it's straight Harassment and deliberate Trespass to boot.

 

Cheers,

BRW

[Mockenrue]

Cheers. I will send it ASAP tomorrow. Thanks to them I'm unable to relax at home this evening.

[slick132]

Hi Mockenrue,

 

Don't let the beggars spoil this, or any other, evening.

 

All the DCA's work in the same way - trying to unsettle you, implying that terrible things may happen if you don't do what they say, calling you day and night, etc, etc.

 

Sending someone round to visit is just another tactic. If you answer the door and find a DCA visitor, don't undo your door chain and tell them to leave immediately or you'll call the police. Don't have any further discussion and close the door. Don't let them in - they have nothing useful to tell you.

 

When they realise you are confident in your stance, they'll leave you and go in search of someone who'll listen to them.

[Mockenrue]

Thanks again for your words of reassurance; they really are very much appreciated.

 

Been going through all my statements as mentioned previously and from mid 2003 until the end of 2006 the total amount of interest and charges on my account is £816 . Most of this is interest.

 

I still have 2007 and 2008 to go of course, when more penalty charges were applied as I started getting into difficulty.

[slick132]

Hi Mockenrue,

 

You can't just claim back the interest they've charged you, unless the ONLY debits on the a/c are penalty charges. This may be the case recently but I assume there were purchases or a balance transferred onto the a/c which has attracted interest.

 

If you want to claim interest on the penalties, you need to use an Advanced Spreadsheet. You also need to understand the basis on which you want to claim this interest. Read this for starters - http://www.consumeractiongroup.co.uk/forum/bank-templates-library/145027-interest-tutorial.html

 

BC will not make a voluntary refund if you claim full interest on the charges - you'll have to file your claim at court, submit a court bundle and be prepared for BC only negotiating at the days before a full court hearing.

 

You should get the interest on top, but not as easily as if you were just claiming the charges. They repay these nowadays without you having to file at court.

 

Read the guide and see what you think.

[Mockenrue]

Understood, thank you. Your assumption regarding purchases and balance transfers is correct.

 

If you claim for penalty charges and they pay up, does this automatically preclude you from going for full interest at a later date?

[slick132]

If you claim for penalty charges and they pay up, does this automatically preclude you from going for full interest at a later date?

Yes, if you make a claim against BC for the penalty chgs alone, they will repay them and you won't need to file a court claim. Hence you will not be able to claim the s.69 Statutory Interest (although BC have been paying a flat 8% bonus on top as a goodwill gesture).

 

You could not then make a later claim for interest at the contractual rate. If you want to claim this, you must do so from the Prelim Letter onwards.

[Mockenrue]

Thanks again slick.

 

BTW, doorstep 'bog off' letter sent earlier this week and I have now received this text:

 

"Unless you call now, we may begin legal proceedings to recover the outstanding balance on your Barclaycard. Call..." etc. etc.

 

Still waiting for my CCA; request was received by them over a week ago.

[Mockenrue]

Right, I've added all the charges up and they are as follows:

 

 

• Six balance transfer fees totalling £58.80
  
• Three CC cheque fees totalling £23
  
• Fifteen late payment charges totalling £218. Of these, five are £20, one is £10 (it was originally £20 but £10 of it got refunded) and the rest are £12.
  
• Two over credit limit charges @ £12
  
• One returned direct debit charge of £12
  

The grand total is £335.80.

[slick132]

• Six balance transfer fees totalling £58.80
  
• Three CC cheque fees totalling £23
  
• Fifteen late payment charges totalling £218. Of these, five are £20, one is £10 (it was originally £20 but £10 of it got refunded) and the rest are £12.
  
• Two over credit limit charges @ £12
  
• One returned direct debit charge of £12
  

Red = non-reclaimable

Green = reclaimable

 

You need to put the charges onto the Site spready which I linked you to in post #4 above. Then you're ready to send BC your Prelim Letter. Use this one - http://www.consumeractiongroup.co.uk/forum/bank-templates-library/586-credit-store-card-letter.html

 

Enter £10 on the spready for the charge of £20 which was partially refunded

 

For the Prelim ltr, don't use the "Letter Before Action" heading. Use it, though, for your LBA !

[Mockenrue]

Again, many thanks.

 

Still no CCA so I guess the claiming back of charges will have to go on hold for the time being. Phone harassment letter sent this week and the text I got in post #19 has just arrived again.

[tosh1]

Hi Mockenrue

 

How long ago did you aaply to Mercers for your CCA and have you received an acknowledgement from them to say that they have received it? Are you making any token payments to them?

[slick132]

Hi Mockenrue,

 

Get straight on with reclaiming the charges. The sooner you do this, the sooner they'll refund the charges to you a/c and reduce the balance.

 

It'll will also put the a/c "In Dispute" which will give you more protection from the OFT Debt Collection Guidelines. This will be useful in getting BC and their DCA's to back off (or at least slow down). It should also stop BC and/or Mercers selling the debt on to more aggressive DCA's.

 

Fire off the Prelim Letter if you're happy with your Scedule of Charges.

[Mockenrue]

Hi Mockenrue

 

How long ago did you aaply to Mercers for your CCA and have you received an acknowledgement from them to say that they have received it? Are you making any token payments to them?

 

Hi tosh1

 

I sent my CCA request on the 15th via recorded delivery and it was received on the 17th. I have not had any acknowledgement other than continued (and increasing in frequency it would seem) attempts to call me. Often they leave a recorded message - usually a recording but sometimes a real person.

 

They have had one token payment since they started chasing me, paid directly to B/C.