Barcalycard preying on the ill

[katerina1]

just over 4 years agao I was diagnosed with cancer followed and to date with serious depression and numerous other illnesses. At the time of diagnose I lost my job but did have PPI on my card which I used at the time . However during the time when PPI (barclaycard Insurance) was paying of my card Barclaycard continued to increase my credit limit instead of freezing my account. At my most depressed I continued using the card and am now up to my eyeballs in debt. With no job and Barclaycard chasing me for payments I really dont know where I stand or even where to turn to. . I have asked Barclaycard to explain why when my account was being paid of my their insurers and it was clear that I was ill and unemployed why they took advantage and kept the account open and kept upping my limit. To date I have no response.Anyone out there know what the legal requirment are on this situation.

Edited November 28, 2012 by katerina1
spelling mistakes

[slick132]

Hi Katerina and welcome to CAG

 

Who or what department did you write to at BC.

 

Is the a/c still within limits now or have you incurred penalty charges for missing payments or being over-limit.

 

Any penalty charges can be reclaimed in full plus interest.

 

Are you currently in Financial Difficulty. If so, you can ask BC to stop adding any further charges and interest - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

[katerina1]

Thanks for you response on this issue. The account is now over the limit. I will however write to them using the letter supplied by yourself thanks. I have raised the question with customer services why when they saw my account was being paid of by PPI due to sickness and unemployment did they increase spending limits by £1000s. They have not responded on this issue. Surely tho if Barclaycard or indeed other banks cannot keep raising credit limits on an account when they see it is being paid of by PPI and when it is clear that that account cannot be maintained. Should the account not have been frozen or similar?

[slick132]

Hi Katerina,

 

Yes, use that letter to ask them to freeze further charges and interest on the a/c.

 

Do you have recent statements to calculate exactly how much they have charged you in penalties as we can help you reclaim the full amount of each penalty.

 

Regarding BC increasing your spending limit when they knew you were claiming for unemployment/sickness under the PPI policy, they may have been wrong in doing this. However, you may also have to accept responsibility for using the increased credit they provided.

 

We can look into this further once you get BC's attention about stopping further charges to the a/c.

 

[noomill060]

The PPI may also have been mis-sold, despite paying out.

 

If so you can reclaim all premiums and interest on those premiums.

[katerina1]

Thanks again for your response they advised since that they will not be freezing the interest, and the limit apparently was only raised this month ... wrong. Looking into section 6 of the lending code .. Thanks for bring this code to my attention. The limit was raised twice, once during the period of PPI paying and a few months after from memory and certainly not since. Trying to find out more about section 6 as i'm sure legally they should not have allowed this to happen as it was clear the account was being paid by their own insurance company . Have just been receiving incorrect and borderline rude messages the last being we are sorry to hear you are closing your account! again I have never ever suggested this. Realise I must take responsiblility as well as I continued to use the card however they cannot possibly refuse to take any responsibility could they?? Any further advice on section 6 would be most welcome. Wouldnt like to think that other vunerable people would also be taken advantage of in this way.

[slick132]

Hi Katerina,

 

Even though they've already said they won't freeze interest (and/or charges), write to them using the template letter which sets out their responsibilities imposed by The Lending Code.

 

If they still refuse your request, you can pursue the matter pointing out that the bank has a DUTY to take a/c of your circumstances if you're in Financial Difficulty.

 

When you send the letter (by Recorded Delivery), make sure you enclose the necessary Budget Planner to demonstrate your financial circumstances.