Barclays : Bank closing account without notice and refusing to help

[rascaluk]

Hi guys, any advice massively appreciated.

 

I've had a Barclays current account for maybe 22 years, the majority of time it's been in perfect nick and in the black. Over the last year I've found myself living in my overdraft of £1600 + £500 reserve but at the end of each month I get paid and it it goes slightly back into the black and it starts again etc..

 

Anyway, I also have two loans out with them, one with about £2500 outstanding and in order and one with, it turns out £205 left which is in arrears. Now the reasons for it being in arrears are probably silly and I missed a months payment a while back but wrongly assumed it would catch up and it hasn't, my fault, granted.

 

However, I have come home today to a letter from Sky asking why I had cancelled my DD - which I didn't do.

 

I logged onto my online banking and saw that I was -1200, well within my agreed limit but it seems they had withdrawn my overdraft (well reduced it to a tenner) and cancelled my DDs

 

I called to see what was going on and it seems because I was in arrears they have decided to close my current account, the loan account with £2500 owing and the one with the £205. They have passed the £205 on to a debt agency.

 

I explained that if they lifted the restrictions on my current accoutn I could call the debt agency and pay them there and then, but by removing my overdraft I now have no physical way of paying the debt agency.

 

To complicate matters further I moved house 6 weeks ago, sent my new details as they require via form to their office in Leics, I also set up a postal redirect to catch any stray mail.

 

I have not had a SINGLE letter, phone message, email off them saying any of this was happening so it's come as a bit of a bombshell and I don't know what to do. When I called them they didn't have my new address but all my other post has managed to arrive at my new place with no probs.

 

They are telling me there is no way to stop an account closure and eventually it will just close and they will come after me for the total overdraft and loans.

 

I pointed out if they had rang me last week I would have paid it there and then and there would have been no problem. They said "ah but you would just be paying debt with more debt", which while true, wouldn't have been a problem to them had I caught it in time.

 

I also pointed out that if this course of action continues they will be chasing me for money for years as opposed to me just paying the £205 off now and contining to pay the other loan at the current rate

 

To be fair to the guy he could see the situation was a bit odd and he even suggested I don't get my wage paid into the account next week as it would just disappear on the overdraft!

 

However, my issue is obv I am about to lose my bank account with all the issue that will cause.

 

I have just spent an hour explaining the same story to five different people on the phone already, I have rabbitted out my mum's maiden name so many times.

 

Is there anything I can do? They have passed my details to their complaints dept and they will phone me within 2 working days but I don't want it hanging over me for days.

[slick132]

Hi Rascaluk,

 

You should tackle this on the basis that they WILL close your a/c's. There's a small chance you may avoid this but I think it's unlikely, given the way Barclays deal with such matters.

 

Make sure your salary or wages are NOT paid into the Barclays a/c or they'll be lost, leaving you with nothing to survive. This is vital and you must contact your employers wages office to ensure they don't pay into Barclays. Get them to pay by cheque as a one-off for this month

 

Open an a/c elsewhere quickly, before Barclays trash your credit rating. Check on the web for a/c's that offer you what you need, but you may have to accept and a/c that offers you less facilities than you're used to.

 

Contact your creditors to explain you are experiencing difficulties and will resume payments as soon as you can get new DD's in place. However, you may need to make changes and drop any DD's that are non-essential.

 

Read Stickies in the Debt Forums and also there's a blog about this which I'll come back about, with a link to it.

 

8-)

[slick132]

Hi again,

 

Here's the Blog I was referring to. Go through it all carefully - http://www.consumeractiongroup.co.uk/forum/entry.php?256-Sequenci-s-Debt-Diaries-Blog-Home

 

Once you have sorted out your finances for the short-term future, you can consider how to pay off Barclays but this will have to happen in a manner that suits you.

 

Any penalty charges added to the loan a/c's can be reclaimed and used to reduce what you owe on them. Such penalties are unlawful.

 

Charges on the bank current a/c cannot be reclaimed.

 

8-)

[StudentInTrouble]

Hi. I'm sorry to hear of your trouble which undoubtedly could have been avoided had barclays used an ounce of sense. My account with them was closed days after opening it. I didn't know this until my debit card was swallowed up in the streets minutes after I deposited a cheque for over 4k!

 

I've since opened a Co-operative Bank Cashminder account, which I was able to do within a matter of days. All you need to do is bring your passport and a bill to your local co-op. bank branch and they can process it on the spot. My debit card arrived within 3 days of providing ID!

 

One warning with this account however, if you go overdrawn or 3 direct debits fail, may they be weeks or decades apart, they do close the account.

 

Hope this helps - I gave up on Barclays having checked my credit file and seen that there was nothing unusual or for me to worry about - they were just being idiots!

[oilyrag]

Sorry to interject guys,

 

But I think the way Barclays are now behaving is part of the wider picture. They are now being run by a North American "casino type" banker one Diamond much in the vein of the Kennedy's et al in the twenties/thirties. Our banking commission and current government have indicated that they wish to see a split between retail/high street banking and investment banking. Barclays are going to "clean house" to make their sell off seem more attractive so it is my view that more of this will happen on an ever increasing rate on ever more ridiculous excuses.

 

My advice-- Vote with your feet and bank somewhere else.

 

regards

oilyrag.