Barclays Accounts

[bobster316]

Hi,

 

I have two Barclays Accounts, primary with 5k overdraft facility and secondary with 2k. I have not had a job for over a year and was basically surviving on savings and using the overdrafts. The past few months have been very difficult and due to lack of any income, all of my direct debits and standing orders have failed, this resulted in bank charges for every failure, eventually they called me and cancelled all my direct debits to avoid any further charges.

For the 2k overdraft, due to no credits being applied to the account they have removed the od facility and requested i payback the whole amount. They have given me 6 months to pay back the whole 2k.

 

Can anyone recommend how i can recover charges and interest to my accounts, and best way to handle paying back the 2k, i really cant afford to pay 2k in 6 months, but they are not having it.

[dx100uk]

sadly you cannot any longer reclaim bank charges 'as such'

 

you might get some joy with a hardship claim though.

 

use our advanced search top right

 

dx

[slick132]

Hi Bobster,

 

If they are giving you 6 months to repay the £2K OD, you could consider yourself lucky to be given this length of time. They can, and often do, demand immediate repayment of the full amount.

 

Read more about Hardship claims here - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

I think it's only a matter of time until they demand repayment of the larger OD too.

 

Do you have alternative banking facilities elsewhere. If not, you should try and set this up asap before Barclays default markers make this impossible.

 

[bobster316]

I've managed to open an account with another bank as a precaution.

 

For the issues with Barclays

 

is there no way to recover charges like people are doing for their credit cards (have this issue aswell)

 

I also have a Barclayloan Plus (fixed payments of approx £500 per month for 5 years, approx 1 year left to go)

which has also had a number of charges due to insufficient funds.

 

All this due to losing my job over a year ago.

[dx100uk]

yes you can reclaim the lot

 

see the numbered links in my sig

 

dx

[bobster316]

Thanks, i cant find the Bank Templates Library, which is the first letter i should send?

[slick132]

Hit the green Library link button, 3rd from left at the top of any page. Then on the RH side of that page scroll down under LIBRARY to the 11th section where you should find "Bank Charges Templates (Consumer). The Hardship letter is on the 4th page of the bank letters.

 

If you are also going to reclaim Credit Card charges or Fixed Sum Loan A/c charges, start a new thread for each case in the appropriate forum. You should also consider if there is any PPI that you can reclaim but this should be dealt with separately from the default charges.

 

See **WON** cases here for examples of how to reclaim compound interest in restitution on top of the actual default charges - http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?97-Barclays-BCard-and-Woolwich-successes

 

Read plenty of threads before proceeding, to see how to do things.

 

If you don't have all your statements to check for default charges and PPI, get them by sending a SAR. Only one SAR is needed for each bank group so, for instance, a request to Barclays bank PLC should get you a/c data for Barclays current a/c's, loan a/c's and any Barclaycard a/c's.

 

[bobster316]

Thanks Slick132 will follow your suggestions.

[bobster316]

Forgot to ask, when i send the hardship letter, do i have to include an income/expenditure spreadhseet? Are hardship letters only meant for banks or do they apply to credit card companies?

[slick132]

Hi Bobster,

 

Include a Budget Spreadsheet when sending in the H/ship letter.

 

Application for a refund of charges will only apply to current bank a/c's. This is because the banks don't have to refund default charges after the OFT lost the test case about this matter in 2010 (?).

 

If you have any charges incurred on credit cards, you will seek a full refund of these plus interest. If the bank or credit card company does not refund, you will take court action to recover the amounts due to you.

 

[oddmaker]

Hi,

 

Could someone link me to the hardship letter, I cant seem to find it

[slick132]

I gave you a link to it in post #3 above.

 

[slick132]

On your BC thread, you asked about whether to send a Hardship letter before or after the SAR.

 

Send off the SAR now, specifying all the bank a/c and credit card a/c numbers you want data for.

 

If you also want to reclaim bank charges for when you were suffering Hardship, you should do this for a specific period between xxdate and xxdate, the latter date being when you started to get paid for your new job.

 

I'm trying to get the Hardship letter updated so it refers to the current Banking Regulations instead of the temporary Regs that applied during the OFT Test Case when reclaims were put on hold except for those for Hardship.

 

[bobster316]

Thanks alot for the advice slick132, please let me know once the hardship letter has been updated.

[slick132]

Yes, I'll keep an eye out for it.

 

If you hear nothing, feel free to remind me by PM.

 

[bobster316]

SAR finally sent out today and to the other CC companies.

 

Any news on the hardship letter?

i've been looking round on the net and have found the following

 

-Dear Sir or Madam,

RE: Account Number: 0000000000

 

I am currently experiencing financial difficulties due to a drop in my income and am finding it increasingly difficult to meet my contractual payments.

I am trying to resolve my situation but circumstances beyond my control have forced me into this position.

I enclose a copy of my financial statement.

I have also enclosed a schedule of all my non-priority debts and the proportionately calculated pro rata offer.

I hope you can accept this offer of £10 per month and stop any further interest or charges accruing.

I will write to you again in four (4) months to update you on my financial situation and payments

.Yours Sincerely

 

In the meantime I also contacted CCCS and went through my situation with an advisor,

he recommended a DMP to clear my debts.

 

I'm not sure to proceed with them or go it alone myself.

If i decide to go it alone,

is it worth mentioning that i've been in contact with CCCS including my reference number do add additional weight to my situation.

 

At the end of the day i hope they freeze my interest rate and charges and agree to a figure i propose to repay

[raydetinu]

If you have other debts that need sorting as well. I suggest you go nad see CAB for advice; they will go through all expenditure and debts and write the appropriate letters for you to your creditors offering an amount you can pay each month.

carries more weight and more likely to agree as third party has verified your figures.

[bobster316]

Thanks for the advice, will make an appointment to meet with CAB

[slick132]

Hi Bobster,

 

Re the letter above about Hardship, you need to include a para asking for a refund of all default charges added to the bank a/c during the period of Hardship, from xxdate to the present, in accordance with the Lending Code which the banks subscribe to.

 

Edited December 6, 2011 by slick132
changed FSA reg'ns to Lending Code

[bobster316]

Hi Slick,

 

Just wanted to ask about default notices, is there anyway to get out of being given a default notice when agreeing to go on a repayment plan with a bank or credit card company?

[slick132]

Hi Bobster,

 

Your case prompted me to review our Hardship letter and it's now been revised and updated - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

It includes reference to the Lending Code regulations which were issued in March 2011, which basically force the bank to give due consideration to your circumstances and to stop adding interest or charges on an account while you're in Financial Difficulty.

 

Have Barclays already issued a DN for the bank a/c.

 

[bobster316]

Hi Slick,

Barclays have responded to the original hardship letter I sent them,

they want to do the following:

close my two accounts,

issue me with a default notice

open a new barclays cash card account

convert the oustanding overdrafts into a loan (not sure about rates etc..)

 

In my main account I was always in my overdraft limit,

the real conern is the 2nd account which i need to bring back to 0 balance.

 

I wanted them to put me on a plan to clear the overdraft on my 2nd account,

freeze the interest and not give me any default notice.

[dx100uk]

what convert unlawful bank charges into a loan

 

no way!!

 

dx

[slick132]

Hi Bobster,

 

Did you send them the new Financial Difficulty letter or not.

 

Just wondering if you are waiting for a further reply from them to the FD letter.

 

[carcar]

Hi Bobster

 

Do you have an updates on this situation? It is almost the same situation as mine and you were asking the same questions, but the thread has kind of stopped half way through the problem....