Barclaycard Over-limit charges

[joncow75]

In 2010 I succesfully claimed back over-limit and late payment fee's from barclaycard. So far so good. They refunded to the card, which I was happy for them to do, and it left me with an available balance of quite a few hundred pounds on the account. I used some of this to book a hotel for a short break then paid for a couple of other itmes before chopping the card up. I didn't think anything more about it untill a letter came from BC telling me they were reducing my credit limit. Not a problem I thought, until the bill came in and I was more than £100 over the new limit. It seems i'd used the card and the payment hadn't cleared through, and they reduced the balance before i'd received the letter!

 

That was Aug 2010 and ever single month I have been hit with a £12 charge for over-limit fee's. I've paid each month (late twice) and am still £99 over the limit, but with £240 of over-limit charges added (and the couple of late payment fees)

 

Does anyone think BC are likely to pay this back bearing in mind they have already refunded me? I'd even be happy for them to refund and reduce the limit as I dont intend to use the card

 

Many thanks in advance

[Crazy Diamond]

Go for it, credit card charges are still very much worth going for, the test case only addressed overdraft charges, don't let them tell you otherwise. Just be ready for a long slog (but you'll know that if you've already tackled them once).

[joncow75]

TBH, Barclaycard were pretty easy at first go, no hassle at all, just wondered if they would view as "we've paid you once, get lost" I've amended the letter to include why I've gone over the limit as i wasn't even aware they were reducing it untill after it had been reduced

 

No harm in trying, just wondered if anyone had any similar success

 

Thanks for the quick response though

[Crazy Diamond]

Even if they paid once, they didn't do it out of the goodness of their hearts and it isn't a "one bite of the cherry only" scenario either! (although i'm sure they'd love that one!)

[dx100uk]

PENALTY charges are PENALTY charges regardless

 

until they detail their exact costs you'll win everytime

 

dx

[slick132]

Hi JC,

 

Yes, BC are likely to repay the charges in full.

 

Before you do your Prelim Claim letter, decide if you want just the charges back, or compound interest in restitution on top.

 

If you want the latter, make sure you request this from the outset.

 

Otherwise, they'll just refund the charges and you'll lose out on the higher interest.

 

Having said that, the benefits of claiming compound interest are reduced when addressing more recent charges.

 

To decide how best to proceed, see how much extra you'll get in compound interest at 24.9% using the CI calculating spreadsheet.

 

[joncow75]

Thanks guys, letter is drafted and will be off in the post today. I'm happy to claim stat interest as they are all recent charges and don't see the point of a lengthy fight for a couple of pounds

[slick132]

Noted but you can't claim s.69 Int't until you file a court claim.

 

BC will offer to repay the full amount of charges (sooner or later) and, if you are lucky, they may offer to add a flat 8% bonus. Any such int't will not be related back to the charge date.

 

In any event, you will get the full amount of charges back without the need for any court action.

 

Edited May 16, 2012 by slick132
typo

[joncow75]

Hi Slick, many thanks. I've simply sent a letter explaining why i'm over my limit, highlighting how many over-limit charges are on and asking for a refund. They did add the 8% last time, so thats fine by me if that is what I get. Card is chopped up anyway, so it should hopefully be back below its limit soon

 

I'll update once i've had a response

[joncow75]

Had standard acknowledgement through the post yesterday letting me know they will come back by 1st June. I'll sit tight and see what the response is

[slick132]

Did you send them a spreadsheet showing the charges you're reclaiming.

 

Unless you look like you mean business, they may only offer to refund any amount in excess of the £12 OFT recommended limit.

 

However, if you're happy to wait for their next letter, let us know what they say.

 

[joncow75]

Hi Slick. Yes spreadsheet was included with letter showing each charge and it's date plus interest at 8%. Letter was dated 2nd May that I sent so having them confirm a response by 1st June is quite a surprise.

[slick132]

If you letter was dated 2nd May, you should send them a LBA before the end of this week, giving them a final 14 days to pay up.

 

Don't wait for their timescale - stick to yours.

 

[joncow75]

Well,

I got what I should have expected which was a fob off for another 4 weeks (the 8 allowed by the FOS)

 

Didn't get letter till well after the 1st, even though it was dated the 1st.

 

I spoke to someone on that day and they said as it was the 1st they had the day to send something out.

If I ordered something to be delivered on the 1st of the month and they decided to send it on the 1st and it turned up on the 6th I'd be pretty unhappy,

so why do BC think that they can say I'll have a response by a particular date,

but what they actually mean is they will send a letter by 4th class post on that day.

Total joke.

 

thought about an LBA but as thats a 14 days letter and I have 14 days till they have "promised" a response then i'm just going to have to sit put

[slick132]

I'd send them a LBA anyway, enclosing an updated Schedule of Charges showing revised (increased) s.69 interest.

 

Don't let them feel they're dictating the timescale.

 

[sequest]

Did you send them a spreadsheet showing the charges you're reclaiming.

 

Unless you look like you mean business, they may only offer to refund any amount in excess of the £12 OFT recommended limit.

 

 

 

However, if you're happy to wait for their next letter, let us know what they say.

 

 

 

slick132 - Are they allowed to charge the £12 - I thought all charges for overthelimit and late payments were penalty charges and could be claimed back? I successfully claimed these back before but now Barclaycard are ignoring my letters and continue to add charges - has anything changed?

[joncow75]

I should know the answer to this in a couple of days. I don't see any issue with trying to get these back, and as someone said earlier in the thread they paid out once, so no reason why they wouldn't do it again. Untill BC prove the cost of managing an account that is paid late or over the limit is £12 per month then i'm not sure how they can defend themselves. I've even heard that BC are refunding all new £12 charges on old Egg cards, but won't refund anything when Egg were charging £16. Very strange!

[slick132]

Hi Seaquest (and apologies to JC for the hijack),

 

Nothing has changed. Late payment, bounced payment and over-limit fees are unlawful penalties and should be reclaimed in full.

 

If you don't look serious in your dealings with BC, they will see this as weakness and perhaps only offer to repay what they think they'll get away with.

 

If you're being ignored, BC clearly aren't taking you seriously. Did you follow the advice I gave on your own thread on 2nd October 2011 - http://www.consumeractiongroup.co.uk/forum/showthread.php?322090-Sequest-Problem-with-BC-default-charges&p=3574906&viewfull=1#post3574906

 

The strategy is simple. Prelim letter with compound interest spreadsheet giving 14 days. Then LBA giving final 14 days. Then file a court claim.

 

BC will repay all penalty charges plus compound interest if you follow the basic steps. Please use you own thread to discuss this further and I'll comment there shortly.

 

[sequest]

Thanks JC and slick132. Apologies - did not intend to hijack. I'd forgotten about the thread I had opened earlier - I was successful then. Will post on that thread.

[joncow75]

Rang today to find out what was in my 8 week letter and was told they still haven't resolved my complaint. Unbelievable!! I was told on the phone I could go to the FOS now, I informed the girl on the phone that I find it unbelievable that Barclaycard take 8 weeks to do nothing with a complaint and that yes I will be going to the FOS which will cost BC £750 for an investigation which is considerably more than I was complaining about. No wonder the banks are in a total mess.

 

FOS form will be off in post today, so disappointed with the service from BC as my last complaint was dealt with in time. One guy I spoke to claimed that they were dealing with more charge complaints than they were PPI complaints at the moment. I'm starting to understand why!

 

BC will also get an LBA letter of 1 days to hurry them along and I think i'll be considering court

[slick132]

I'm afraid the reality is, unless you are prepared to take court action to sort the matter promptly, you're at the mercy of BC who may still refuse to refund even after their lengthy deliberations.

 

There's no certainty that the FOS will order a full refund either. However, time will tell.

 

Don't send BC the LBA unless you are willing to follow it with prompt court action. If you do, you are not helping other claimants who seek refunds from BC in the future.

 

[joncow75]

Good point Slick. I'll wait til the end of the month, when I can afford a court fee. In the meantime i'll send my letter to the FOS so at least BC get their "fine" and see what comes in the next couple of weeks. I don't have a card for the account and just make sure I make my payment every month, so not a massive difference if sorted today or next week. Its just slightly more interest added so BC's loss not mine. I've taken Cap One to court so know the process. The threat to MBNA worked without me having to go that for, so fingers crossed

[naithr]

Hi JC. If I could be really cheeky... Whilst you are waiting for the end of the month could you have a quick look at your old HSBC mortgage thread please? You may be able to help me with my claim

[joncow75]

I hoped that this was going to be quite straight forward,

but after ringing today I have been told that no-one has looked at my complaint,

its not even allocated to someone and yes I can go to the FOS.

 

The guy on the phone was pretty candid with me, was very aware that BC would get a fine for an investigation,

but told me I wouldn't hear anything more until their investigation was complete

- whenever that may happen to be!!

 

As they had complied with the FOS 8 week time limit, but were no further forward,

they were under no obligation at all to contact me again until any work they were doing was complete.

 

Whether 2 days or 10 years.

9 weeks of waiting to be told this!

 

Based on that, no bank need ever respond to any complaint and just let everyone go to the FOS after 8 weeks.

It would be carnage!

 

The FOS would be under a deluge of complaints, and nothing would either get investigated correctly or within years.

 

Surely this is all a bit wrong?

[Crazy Diamond]

You started your thread on May 2nd.

 

It's now July 9th and they're still giving you the runaround.

 

You've been told by just about everyone on this thread that the only way they'll pay up is if you take them to court, yet you're shocked at their response?

 

The way I see it, you have 2 choices: Let them keep on leading you by the nose until you give up or take the initiative and make them pay you back. No-one but you can do that though.