Barclays Partner Finance

[londonrunner]

Hi all

 

I recently discovered that I have accumulated over £1000 in charges on finance provided by Barclays Partner Finance for an Apple iMac purchased in June 2008.

 

I paid £35 per month for the duration of the finance and was expecting the direct debits to stop in June of this year. In July I noticed another direct debit come out of my account. I assumed BPF had made a mistake so called them for the first time.

 

They explained that I still owed +£1100!

 

Apparently I missed a payment in December 2009 and have been accruing £45 per month in charges. £22.5 twice a month.

 

I was unaware of this as I moved house in August 2009 and changed my phone/number shortly after. BPF have been sending letters to an old address and calling a dead phone number. Further, the missed payment occurred in the month that I changed bank accounts and so the unpaid DD went unnoticed. In the duration of the loan this was the only missed payment.

 

I have had a number of telephone conversations with BPF this past month trying to find a resolution.

 

As a gesture of goodwill they have offered to reduce the charge to £550.

 

I am awaiting a full statement and letter stating this and should receive it within the next 7 days.

 

What are my rights?

 

Should I pay the lump sum and then attempt to reclaim?

 

My worry is that if I initiate a claim to have the charges removed completely then I run the risk of the full charges being reinstated.

 

Your advice is very much appreciated.

[slick132]

Hi LondonRunner,

 

Each and every default charge they have added to the account can, and should, be reclaimed in full.

 

Offering to reduce the charges is a cheap way out for them. Do not worry that they'll reinstate the full amount of the charges - if you follow examples here, you'll get it all refunded. You need to do a lot of reading but it will be a rewarding investment for you.

 

These charges are treated in the same way as credit card charges - they are unfair and you can reclaim the full amount of every charge PLUS Interest in Restitution.

 

Start by reading up on Interest in Restitution - http://www.consumeractiongroup.co.uk/forum/content.php?757-Interest-Tutorial-and-Spreadsheets

 

Then read through some of the **WON** Barclaycard cases here - http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?97-Barclays-BCard-and-Woolwich-successes

 

You need all the a/c statements to identify every default charge. If you don't have them, send Barclays an SAR - http://www.consumeractiongroup.co.uk/forum/content.php?552-Data-Protection

 

Then list the charges and dates on this spreadsheet - http://www.shweb.pwp.blueyonder.co.uk/interestcalcs.xls

 

When you are ready, you can start the reclaim process with this letter - http://www.consumeractiongroup.co.uk/forum/content.php?605-Credit-Store-Card-Letter-Template As with all site templates, adapt the letter to reflect your own case - eg you will refer to your loan account default charges.

 

Take your time to acquaint yourself with the reclaiming process before proceeding.

 

You may be surprised at the effect that claiming compound interest, as per the spreadsheet, has on the default charges.

 

If PPI was added to the account, you may also be able to reclaim it, if it was mis-sold or it was inappropriate for your circumstances. This should be dealt with separately from the default charges reclaim.

 

[londonrunner]

Should I continue to pay £35 per month to pay down the oustanding charges?

[slick132]

Hi LR,

 

I suggest you continue to pay whatever monthly amount is normally due. Otherwise, more default charges will be added and they'll be onto you demanding payments relentlessly.

 

Perhaps when you have done all the groundwork and have evidence to show that, in fact, they now owe YOU money, you can properly show the a/c is in clear dispute and stop further payments.

 

[farhquad]

I have found myself in a really tight spot with Barclays Partner Finance too...

I wanted to explain my situation and see if you guys have any advice on to how to get out of this one or if I have to just come to terms with the fact that I'm screwed.

 

I got a loan to purchase a guitar a year ago in November.

 

Full details are on my own thread - http://www.consumeractiongroup.co.uk/forum/showthread.php?376406-Barclays-Partner-Finance&p=4082055&viewfull=1#post4082055

 

I would appreciate any advice on options here.

 

Thanks,

Edited December 19, 2012 by slick132
removed detail and linked to farhquad's own thread

[londonrunner]

I am embarrassed to say that I paid the reduced amt, which in the end was £450. An expensive life lesson. I will not take "free" credit in the future.

[slick132]

Hi London and thanks for the update.

 

It's a shame you didn't challenge the penalty charges properly but at least you didn't pay them the full amount.

 

As you say, it's a lesson learned and maybe another time you would take the bank to task and reclaim the penalty charges in full plus interest in restitution.