Barclays Resolve Loan

[slick132]

Crikey, then that was a fast response from them !!

 

I think you need to respond saying you require a copy of the default notice so you can verify it was sent to you as suggested by them, and that it was both accurate and compliant within the terms of CCA 9174.

 

[championless]

Sent them this letter on 28th June and still no response. Any suggestions for next steps?

 

I refer to the default entry on my credit file dated xxxxxxx.

 

At this time you were subscribed to the Banking Code. Although a membership was voluntary once signed up you had to follow each and every provision.

 

I would like to bring to your attention Section 13.7 of the Code: In these cases, we will give you at least 28 days’ notice that we plan to give information about the debts you owe us to credit reference agencies. At the same time, we will explain the role of credit reference agencies to you and the effect the information they provide can have on your ability to get credit.

 

Further to the above I would also like to bring your attention to the Information Commissioners Guidance on Defaults.

 

Notices of intention to file a default

Notices to comply with Sections 13.7 of the Banking Code and 7.5 of the Lending Code should provide adequate warning Lenders who have to provide a notice of intention to file a default under a relevant code of practice should be aware that not complying with the code may be taken into account in any assessment of the fairness of their processing.

 

At no point did I ever receive such a notice giving me 28 days to rectify the situation. Also no such notice was included in my recent Subject access request which if present should have been. The fact it was not suggests no notice was ever sent.

 

Taking all of the above into account I believe you have breached the fourth principle of the Data protection Act in that the data has not been processed fairly. You have also breached the Banking Code which was in place and you were signed up to at the time agreeing to abide by the conditions laid down.

 

Furthermore the default you have placed on my file relates to an account i did not even know existed. At no point did you inform me of any account change neither did i sign any documentation which would be required in order for a new account to be opened. Please provide me with evidence of me acknowledging and agreeing to any account change.

 

I look forward to receiving a full explanation at you earliest opportunity. An unsatisfactory response will leave me with no option but to commence legal action against you for breach of the data protection act.

[slick132]

You gave them no deadline to reply and their idea of "earliest opportunity" is probably different to yours !!

 

Give them 2 to 3 weeks to respond, after which send a reminder with a copy of the letter and then give them a final 10 days to respond.

 

[championless]

I'm sending this today:

 

To whom it may concern

I refer to my letter dated 28th June. I have still not received a response to this letter.

I am disappointed that I have still not received a response. This situation is extremely stressful for me and is preventing me from attaining a mortgage, thus forcing me to stay where I am currently residing. I am considering going to the press with this matter, as I believe it is shocking the way I have been treated and appalled at the apparent disregard for the law that Barclays have show.

If I do not receive a response within 7 working days, I will have no choice but to take this matter to as many members of the press as possible. I will also submit complaints with the Financial Ombudsman Service, the Information Commissioner’s Office and I will also commence legal action against Barclays for breaches of the data protection act and emotional distress.

I look forward to receiving a full response from you imminently.

[championless]

I've received the following letter today and to be honest, i'm feeling pretty defeated now!

 

Any suggestions on what I can do next, or is it all over???

-----------------------------------------------------------------------

Dear Championless

I’m sorry you needed to contact us again regarding your complaint about a default logged on your credit file by Barclays. You also query the validity of your loan due to the account details being amended when it was transferred onto our purpose built system. Two separate letters have been issued to you requesting thatyou contact us to discuss your concerns; however we have received no response. I have completed my further investigation of this matter and have laid out our final response below.

I refer to our letter of 1 June whereby the default was logged on your credit file due to the resolve loan going into arrears.

As agreed, in February 2010, when the default was logged, we did adhere to the Banking Code whereby we allow customers 28 days notice to we plan to give information to CRAs. Please find enclosed a copy of the default issued to you on 10 December 2009 whereby it states ‘Not earlier that 28 days after the date of this letter, the bank intends to register details of the default on your account with CRAs’.

I refer to our letter on 26 June, whereby you were issued with a statement showing your outstanding loan balance being transferred to the new account number. A letter was issued to you in August 2008 to advise of the internal change and your new loan details. This was not a new loan and only a continuation of your existing loan, therefore you were not required to sign a new agreement. You did sign for the loan when it was opened and 7 statements have been issued to you since the loan was transferred to our new system, along with 14 arrears notices all stating the new account details.

As you have defaulted on your loan and the information passed to the CRAs is correct and factual, along with the necessary notices being issued to you timely, on this occasion, we have not upheld your complaint.

I hope this explanation is helpful and has answered all of your concerns, although I appreciate that it may not be the outcome you wanted.

In line with our previous letters, if you are still unhappy with this outcome, you may now ask the FOS to review your complaint. I have enclosed a copy of their leaflet, which includes details of how to contact them. Please note, you have six months from the date of this letter to refer your complaint to the FOS for investigation.

Our complaints procedure has now been exhausted and you may consider this letter to be our final response. Please be aware we will not enter into further correspondence on this matter. However, if you choose to contact the FOS, we will cooperate fully with their investigation.

Once again, we are sorry for the problems you have experienced, thank you for letting us know. We take all complaints seriously and value your feedback to help us identify where we can improve in the future.

Yours sincerely

Stupid Barclays Person

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[slick132]

Hi Champ,

 

Not sure if this has been asked before - are there any penalty charges on the a/c.

 

If penalty chgs are included in the DN total, this alone would make the DN inaccurate.

 

[championless]

Well, the original account had absolutely LOADS of charges on it! They then pretty much forced me to take out a loan, which was called a resolve loan. Massive amount of interest and payable over NINE YEARS!! Does that help?

 

When you say penalty charges, do you mean charges that were added on for non payment before the default was issued?

 

Also, i sent them a letter in September stating that my account was in legal dispute. I'm sure i read somewhere that if your account is in dispute, they cannot add a default to your file. Does that sound right?

 

Is this the end of my dream of buying a house?

[championless]

The DN could be a problem for them, it was dated on a Thurs and unless it was posted 1st class it is assumed unless they can prove otherwise it was 2nd class and you have to allow 4 working days for service which would mean you received it 15th then you add 14 days to remedy which makes it one day short.

 

Now it gets even more interesting, because not only were there postal strikes during this period but also with it being Xmas you have to take into account when the last day for posting was because of the Xmas holidays & when the Post Office resumed normal service again + the Bank Holidays.

 

Can this be a way out maybe?

[slick132]

Well, the original account had absolutely LOADS of charges on it!

Was the original a/c a bank current a/c or an earlier loan a/c ?

 

Penalty charges on a bank current a/c can't be reclaimed.

 

Penalty charges on a credit card or a loan a/c can be reclaimed.

 

[championless]

It was a current account. They forced me to take out a loan when i was unable to clear my student overdraft instantly.

[championless]

Bump.

 

Any suggestions anyone?

[slick132]

HI Champ,

 

Penalty charges made to the original bank a/c cannot be reclaimed.

 

Why did they want instant repayment of your student loan. I assume this change must have made your debt to them far more expensive.

 

Have any penalty charges been added to the Resolve Loan a/c for late or missed payments.

 

[championless]

I'm pretty sure there's no charges on this account. I don't know why they demanded payment, i told them what i could afford and it must have been unacceptable to them. This made the debt last 9 years and cost me over £1600 in interest alone!!!

 

Been away for a while as had a slipped disc and surgery, but back to it now and want to get sorted....

[slick132]

Hi Champ - hope the surgery went well for you.

 

What I wanted to know is "What was the bank's reason for demanding instant rep't of the student loan" - eg, you were no longer a student, you'd defaulted on the loan terms, or other.

 

8-)

[championless]

I was no longer a student. They didn't want to accept my offer of repayment of what I could afford so made me take out the loan over 9 years.

 

Surgery went well thanks. I had a slipped disc so they removed it!

[slick132]

Hi Champ,

 

I've reviewed your thread to see what you can do on this a/c. Since you started the thread, things have changed significantly because of HHJ Waksman's ruling in Carey V HSBC, and rulings on other cases.

 

Have you checked the statements for the Resolve a/c and made sure there are no penalty charges to reclaim.

 

The DN may be an issue in your favour but this cannot be progressed unless and until the a/c is terminated. This hasn't happened yet I think. If the a/c is terminated on the back of their faulty DN, you have grounds to contest the amount they'll be demanding.

 

You can't challenge the validity of the credit agreement unless they take you to court and have an IEA (improperly executed agreement). Apart from the signature being absent from the copy they sent you, I think the agreement is valid. If the agreement they have is NOT signed by you, they have a very poor case and you should be able to defend if you do this properly.

 

Are you still paying towards the a/c or not.

[championless]

How will i know if the account is terminated? I've checked my credit report and it shows:

 

Current balance:£1,521Default balance:£1,477

[slick132]

Hmmm,

 

In post #57, you said the credit report entry showed, "...... have not responded satisfactorily to requests to bring your payments up to date, so the credit agreement has ended."

 

So you could assume the a/c has, in fact, been terminated. So you could try the Unlawful Rescission route, as per other threads on this topic. Did you manage to find any more about post strikes, holidays, etc that would render the DN faulty.

 

I asked above, are you still paying anything towards the a/c.

 

[championless]

Hmmm,

 

In post #57, you said the credit report entry showed, "...... have not responded satisfactorily to requests to bring your payments up to date, so the credit agreement has ended."

 

So you could assume the a/c has, in fact, been terminated. So you could try the Unlawful Rescission route, as per other threads on this topic. Did you manage to find any more about post strikes, holidays, etc that would render the DN faulty.

 

I asked above, are you still paying anything towards the a/c.

 

 

I'm assuming the account has been terminated also. What is Unlawful Rescission?

 

I found out about post strikes but none on the dates in question (My partner's dad is a postman, so he checked it out for me). It's still one day out though isn't it?

 

I'm not still paying anything towards the account and haven't for about a year, as i'd thought that if they didn't supply a signed CCA, i could withold payment. In hindsight, i wish i'd kept paying as i would've had no default against me now. It literally has stopped us buying a house!

[slick132]

Debate about using Unlawful Rescission to question the enforceability of an a/c has been going on for some months now. I heard recently that this is now less likely to succeed than originally thought. Read more about this in the Legal Issues forum.

 

8)

[championless]

So no more options?

[championless]

I can't find a good explanation of Unlawful Rescission. Please can you advise?

[slick132]

Hi Champ,

 

As I said before, there are discussions about this in the Legal Issues forum.

 

Use the Search facility to look for Unlawful Rescission and see what threads show up.

 

8)

[megabee123]

This loan account doesnt function in the form of a regular loan account; a resolve loan is a specific tool used by Barclays to resolve arrears issues on an existing unsecured loan and/or an existing overdraft (whether in arrears or not). As I understand the latest regulation and internal communications, Barclays are now NOT offering customers the option of keeping their existing overdraft (even if within it's agreed limits), if the customer's original loan falls into such a state as to require a resolve loan - the credit agreement will stand up in court as valid, but certain exemptions are made in the fine print as it is a consolidation loan designed purely to remedy financial difficulty..re: cancellation rights, as above the loan is no obligation.