Barclays want everything back

[Mrs E Blackadder]

Hi, hope someone can give me some information please.

 

My Barclays account is overdrawn and there are insufficient funds to pay anything. As a result, they have written to say that they have cancelled all my direct debits/standing orders and want the cheque book and card back.

 

Does anyone know whether or not they will reinstate the direct debits if the account is brought back up to the correct limit, and if they do how long it will take them. Also, what happens if I don't send back the debit card? I don't intend to try to use it, but once the account is back in order it seems (from reading the letter) that they still won't let me use it.

[slick132]

You have 2 choices:-

 

1. Speak to, or preferably visit, your branch and tell them what you can do to bring the a/c back into order and keep it that way. They may not be able or willing to do this depending on how bad the a/c has been recently. This is probably the better option, if you can keep the bank on your side.

 

2. If Barclays will not help, open a normal, or a basic a/c with another bank.

 

If you can open a normal a/c that will handle DD's, etc, then fine.

 

If you can only open a basic a/c, you may have to find alternative ways of paying items that were paid by DD's.

 

Good luck in sorting this.

 

[Mrs E Blackadder]

Hi, any further help or advice anyone can give me would be much appreciated.

 

Barclays are confusing me and as such I have not contacted them as I know they will just make me feel even worse. They have now terminated the account and want all the money outstanding repaid by the end of next week, they have also demanded the cards/cheque book back.

 

However, today I received a letter saying that the account should be brought back in order, with no mention that the account had been terminated, just that the outstanding should be paid and they would be telephoning me to discuss this. I do not want to speak to them on the phone and will ask them to put everything in writing.

 

Also, there is no way that I can repay the whole amount by the end of next week, infact I doubt I can even repay a small amount of it at the moment. Would it be better for me to let them pass is to their debt collectors and then offer a full and final settlement, or would they consider a full and final settlement before passing it to their debt collectors? What sort of figure would be appropriate to offer on a debt of around £2000, quite a lot of which is made up of charges?

 

Thank you to anyone who takes the time to help me out here as I am beginning to feel snowed under with it

[Mrs E Blackadder]

Anyone have any suggestions

[slick132]

Hi Mrs EB,

 

I know this is daunting to you but, unless you try contacting your branch and go in to discuss this, the a/c WILL be terminated regardless. The outstanding debt will then be handled by their collections dep't who will seek payment in full.

 

By speaking to them, you may be able to avoid the a/c being closed.

 

If you are overwhelmed by this, contact your local CAB who may be able to look at your overall position and offer some advice. They may even write to the bank for you.

 

The bank is not likely to even consider a F&F Settlement at this stage and, from what you say, you have little to offer them anyway.

 

I'm concerned that you refer to DD's not being paid and that this will lead to further problems with your creditors as regards housing costs, council tax, utilities, etc.

 

You should ensure you are claiming any benefits to which you're entitled and CAB may be able to help you with this too, when looking at your overall postition.

 

Have a look here too - Debt: Where to Get Help - Consumer Wiki

 

[Mrs E Blackadder]

Hi Slick, thank you for taking the time to reply.

 

I have sorted the Direct Debits, as I have another bank account that my salary is paid into now. I wouldn't leave things like the council tax or tv licence unpaid, and I need the car insurance so that I can get to work to earn the money to pay my Direct Debits

 

There is a place locally that is funded by the local council which helps low income people like myself who need help with financial matters. They helped me when my ex left and I had problems with my mortgage company, and even offered to act as a middle man so that they would stop harrassing me. I am waiting on the outcome of a letter to Barclays (and probably an doorstep visit from their hired henchman, who will be told to go away!) If I need help, then I will go to the organisation and see if they can assist me.

 

Thanks for your time again, it is much appreciated.

 

ps I LOVE the dog in your picture. It looks so cute:)

[Bookworm]

PLEASE stop paying by DD and arrange standing orders instead, this way, yo get the power, yu say when, you say how much. A DD is nothing but a permission for a company to help themselves to YOUR money before you do. Take back the control of that, and you'll be amazed how the rest follows. ;-)

[slick132]

Hi Mrs EB,

 

Let us know how you get on.

 

I'll pass on your nice comments to the dog, Jasper.

[Mrs E Blackadder]

Just had a thought.

 

Barclays have sent me the termination of account letter. Could anyone tell me exactly what this should have in it, because if there is anything missing maybe it will buy me some time.

[slick132]

Hi Mrs E,

 

How much notice have they given you before closing the a/c.

 

I think it should be 30 days.

 

[Mrs E Blackadder]

Hi Slick, here is what the letter says, (seems like a standard computer generated letter with just the dates and balances put in):

 

TERMINATION NOTICE

 

Issued in accordance with Sections 76(1) and 98(1) of the Consumer Credit Act 1974.

 

Important - you should read this carefully

 

It is a term of your agreement with the Bank that the full amount outstanding on your account is repayable, with interest, on demand at any time. Pursuant to that term, the Bank hereby terminates your agreement, including any overdraft or reserve facilities, with effect from 22/07/2010 and makes demand for full and immediate repayment of the balance on the account (currently £xxxxx) with effect from that date. In the meantime no further drawings on the account will be permitted. Daily interest charges of £xx will accrue from the date shown below until full payment is made, assuming no change in the interest rate.

 

If you do not settle the balance on you account the Bank may transfer the debt to one of its recovery units or agents with a view to taking further action. Additionally, it is the Bank's intention to register details of the account with credit reference agencies.

 

etc, etc.

 

Dated 8 July 2010.

 

 

 

I make it that they gave me 14 days notice.

[slick132]

Hi Mrs EB,

 

I may be wrong about 30 days notice. In any event, I don't see that it matters much.

 

You should concentrate on using the new bank a/c to deal with all your finances from now on. Barclays will stamp and shout about the debt you have with them and will no doubt pass it on to their DCA's. When they start chasing for payments, you can decide how best to deal with them.

 

Have there been default charges added to the Barclays a/c in recent months or years. If they have done this while you were in financial hardship, you may be able to reclaim some or all of these charges because of the FH.

 

Read more about this in the Bank Templates Library.

 

[Mrs E Blackadder]

This account has now been passed to the inhouse debt collectors. It was actually a joint account that I had with my ex which I left just a few direct debits in because I thought it was easier than switching them all over when he left. He has, conveniently, taken himself out of the range of communication, and they seem to think that my name should now come first on any communication!

 

Should I now make a full and final settlement offer? Sadly, I have no more than £200-300 that I can scrape together against a debt of nearly £1700 so I doubt they will go for it even after I have removed any charges etc, but is it worth giving it a go?

 

I haven't been able to sort anything else out with Barclays because they just kept saying they wouldn't accept anything but the full amount.

 

Any help gratefully received

[reallymadwoman]

Well if you've made reasonable offers of repayment based on your available income and they won't accept them, won't they look silly if they make the mistake of taking you to court.

 

I doubt they'll be willing to accept a full and final at this stage. It may be that you just have to start paying what you've offered, and I bet they accept it.