Barclays Overdraft help

[nomore12]

Hello, been a while since I posted here as been sorting my debts out and moving home

 

I wanted some help with my Barclays Overdraft my limit is £1000

My current balance is £980 and I get about £14.80 interest on it a month,

I have been paying £15.00 a month back for a few months just so I didn’t get over my limit but to be honest this is just kinda pointless as im getting no where and im currently out of work and cant afford to pay more then £15 a month back.

 

I rang Barclays a month ago and I got told that my account would get closed and it would get moved to a debt recovery company

 

Just to note ive had Barclays bank account all my life since school so it’s the only card really ive had the longest, but I guess that means bugger all to the people at Barclays

What’s the best way to sort this?

[Crocdoc]

Go to an alternative bank and open a Basic Bank Account , pay your income into the new account. At that stage you can offer Barclays or the third party agent token payments until your finacial situation improves. It is important never to be in a position wher the bank has control of your income.

[nomore12]

Thank you for the reply,

 

I already have a different bank account elsewhere and my money is paid into that

 

I will call Barclays later today and offer them token payments and see what outcome I get

 

 

Many thanks

[citizenB]

Do you have both a current account and credit card with B/shark ?

 

As you have now secured your income in a different bank - I think you should write to them advising that you are unable to maintain the contractual payments due to a financial hiccup. That you are requesting that they freeze interest rates, dont apply default/penalty charges and accept £XX amount until your situation changes.

 

If you have other non priority debts you might want to consider a CASHFLOW budget.. a sort of DIY DMP

 

Details are below..

 

If you are experiencing difficulty in repaying your debts, CASHflow is a way for you to negotiate affordable repayments with your creditors. Before you can use CASHflow, you must have spoken to one of the free advice agencies licensed to offer CASHflow to their clients. The advice agency will start by talking to you about all of the options available, and can help you to decide if CASHflow is the right one for you.

 

If you decide to use CASHflow, you will be provided with all of the tools you need to be able to complete your own financial statement and negotiate offers of repayment with creditors yourself. This will enable you to stay in control of your situation, but still have support from an adviser at any stage if you need it.

 

You can contact a local advice agency to check if they offer CASHflow. You can find a list of free advice agencies that are near to you by searching for a money adviser in England or Wales, Scotland, or Northern Ireland.

Alternatively, you can call National Debtline on 0808 808 4000

CASHflow: http://www.cashflow.uk.net/

National Debtline: http://www.nationaldebtline.co.u k/

https://www.mymoneysteps.org/

Also as highlighted in the CAG newsletter...

There is the new CAB system that might also be worth a look, this system saves all your details, has guidance allowance figures to work with if you wish and you do not need to be invited / signed off etc with this system, just log in and away you go (see below)

 

(Also, there are a number of other self help tools and systems around so might be worth a little exploration if this is what you eventually decide on.)

 

http://mymoney.nedcab.org.uk/moneyadvice/

 

http://mymoney.nedcab.org.uk/moneyadvice/ (example of completed dmp)

 

I suggest you stay off the telephone from now on. Keep everything in writing or email with proof of postings /read receipts.

 

I imagine their first step will be to wind up Mercers (their in house collection agents ) - who will then probably wind up Calders (their in house solicitor/legal team) . Remember that both these companies are in fact Barclays t/as

 

Do you have any default charges already applied to the accounts that you can reclaim? Or PPI that might have been mis sold ?

[slick132]

You may also find useful info in this CAG Article - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

It confirms that, if you are in Financial Difficulty, you have the right to ask for, and the bank has a duty to provide, help by stopping the addition of charges and interest.

 

[nomore12]

Thanks for the replies

I don’t think I have any unfair changes with my current account, I probably did maybe 6+ years ago when I didnt get an overdraft and was getting £30 fees for something cant remember what for now.

 

Ive sent them a letter to request freezing the charges and interest just waiting a reply now

[nomore12]

Could someone please tell me the correct barclays address just so i can confirm i sent it to the right address thank you

[slick132]

Barclays Bank plc

Head office customer relations

1 churchill place

london

e14 5hp

 

[nomore12]

You may also find useful info in this CAG Article - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

It confirms that, if you are in Financial Difficulty, you have the right to ask for, and the bank has a duty to provide, help by stopping the addition of charges and interest.

 

 

i did this by sending them letter explaing Financial Difficult and got told barclays wont stop the charges and interest.

 

and that i should seek advice from CCCS or debt line

 

ive dealt with CCCs in the past for advice and i got told to write letters to other debts and offer a £1 token payment which went fine without anyproblems, at the time my overdraft was in control but as ive moved home due to family reasons im unable to pay any overdraft back

 

i either quoted my CCCS number in the letter aswell cleary barclays took no notice of that

 

is it worth just sending another letter of the same thing?

[slick132]

Hi Nomore,

 

Did you enclose a Budget Planner with the letter to Barclays.

 

You say you "....got told barclays won't stop the charges and interest."

 

Did they confirm this in writing or was there a phone call.

 

What reasons were given.

 

If you're in Financial Difficulty, helping you is the bank's duty - it's not a discretionary option. This is set out in the Lending Code.

 

[nomore12]

Hi thanks for reply

 

Yes I enclosed a Budget Planner as its something I do with all debts now to save time sending letters back and fourth

Yes I got a letter from them stating this.

Don’t think it said I reason just said we couldn’t stop charges and interest but I will double check with the letter and repost what the letter said word for word

[slick132]

Please check first to see if Barclays gave any reason for their decision.

 

If they didn't, you need to write back reminding them of their obligations imposed by the the Lending Code, in particular, sections 224 to 227.

 

If you have incurred bank default charges when you believe you were in Financial Difficulty, enclose a list of these ask the bank to refund these charges in accordance with the Lending Code.

 

In most dealings with banks, persistence is required to get the desired results.

 

[nomore12]

Ended up ringing them. Yeah I know its not advise able to do so but want this sorted as soon as possible and charges and interest are mounting up

 

Just to confirm letter said nothing about a reason

 

Got told on phone that charges and interest wont stop seek advise from CCCS. Told them I did that already and got told to send letters about charges and interest to stop and token payments but then got told that account cant be closed and charges and interest cant be stopped

 

Would take a while to account to close from they end but in the mean time you get charges and interest

 

LOL what a joke..

 

 

Knew phone call wouldn’t get me anywhere so going to have to write letter. But just a pain in the back side sorting this out

[slick132]

Ok, so now you must write to them using the template letter, adapted to reflect your own case.

 

Tell them you believe they misinformed you about stopping charges and interest when you spoke to them on xxdate.

 

Tell them you require that they review your case urgently and that they :-

 

1. Stop adding further interest and charges to the a/c.

 

2. Refund the charges listed on your enclosed schedule which have been added during the time in which you've been suffering Financial Hardship.

 

Tell them you will report the matter to the FOS if they continue to ignore the obligations imposed by the Lending Code or fail to refund to your a/c urgently.