Wrongful Default placed by Barclays - Agreed to remove - Offered £50 for my inconvenience

[Northernbloke77]

Hi All,

 

First time poster!

 

I've been battling with Barclays over a default they placed on my credit file purporting to a current account with Barclays which I didn't recognise.

 

Six months ago my partner and I were house hunting, at this stage we were really just getting a feel for the market. A house came up that was perfect and we set the wheels in motion hoping to get a mortgage offer sorted within the week and put an offer in. After visiting a mortgage advisor, he asked for copies of our credit files, which we duly acquired from the two credit reference companies and sent them to the advisor. Whom then told me I'd no way qualify for a Help to buy mortgage due to a recent default on my Credit File.

 

I was utterly shocked, especially when I found it was linked to a Barclays Current Account. I have never been a customer of Barclays, ever...at least to my knowledge. I contacted Barclays and went through the SAR motions. It would appear that my very old Mortgage account with the Woolwich (circa 10 years ago the mortgage was paid off and account closed), had been migrated to Barclays and somehow they had issued a charge on the account which changed its balance from NIL to a negative amount...this Current Account now in unplanned overdraft accumulated fees for approx 9 years.

 

In January this year I had received a letter from Barclays saying my unplanned overdraft is being terminated and I must pay them back £267 immediately or face legal action. I contacted them and was advised to pay it to prevent legal action and chase the cause afterwards. So I duly paid the outstanding amount, paranoid that I'd get a blotch on my otherwise pristine credit record. At this point I was writing to Barclays enquiring where the account came from. Now fast forward to April and my house hunting exploits with my wife I mentioned above.

 

After much messing around and letters going back and forth between myself and Barclays Customer Services, They admitted fault and removed the Default from my record, refunded me the £267 they had originally demanded and offered me £50 by way of compensation.

 

I'm literally about to write a response to Barclays about the £50 compensation. Basically, I would have purchased my own house months ago, if it were not for Barclays and the erroneous default, it has stopped us moving on with our lives, prevented my children from being able to settle into their new home (currently 2 girls and a boy sharing a room), its caused endless amounts of stress to myself and my wife and caused months of worry and unhappiness whilst we believed that nothing could be done.

 

I don't think £50 really cuts it after I've had to pay months worth of rent, I wouldn't have had to pay, the emotional turmoil and stress they put us through (I lost 4st due to stress, though that's probably a good thing), my wife has been put on anti-depressants due to the stress and worry.

 

I don't want to be THAT hard done by guy whom is out to line his pockets with someone else gold, but I feel we were forced to hold the ****ty end of the stick through no fault of our own and we had 6 months of misery because of it.

 

I'm not sure what my point is, or even why I'm writing this post, I guess i just needed a rant. On the plus side, it is such a relief that the default is going and we got our money back, but I'm not happy with the compensation they have offered, in fact I find it a bit of an insult.

 

Appointment book for the Mortgage advisor for tomorrow and hopefully we will find another perfect property soon.

[slick132]

Hi NB and welcome to CAG

 

Considering the trouble this has caused you, I agree that £50 compo is a derisory offer.

 

I would reject this in writing, pointing out briefly the ways in which you have been adversely affected by the banks actions. I think you should also consider taking court action against the bank seeking compensation.

 

If you can quantify and actual financial losses that you've suffered, all the better.

 

Do you have copies of all the relevant documents, letters exchanged, etc to back up such a claim.

 

The bank would be likely to settle before a court hearing but you should not rely on this. Only threaten and take court action if you're prepared to see it through. The court costs of such action would be minimal.

 

[Northernbloke77]

Hi Thanks so much for the input.

 

I'm just writing the letter now and have briefly pointed out the stress and worry they caused us, plus the financial losses which resulted from the default.

 

I am in conference with my solicitor by email and he has advised me that it would be a straightforward case and I should be prepared to go to court and he is adamant that its a clear cut case which exposes their duty of care.

 

With this in mind , do I openly theaten court action in the letter?

Do I send back the cheque they sent me?

Do I state that I reject their offer of compensation?

[slick132]

Hi NB,

 

........ plus the financial losses which resulted from the default.

 

1. Are you referring to the rent issue or are there other losses.

 

2. Have you got copies of the CRA reports showing the incorrect adverse data.

 

3. Over how many years was this adverse CRA data reported.

 

4. Are you going to specify the amount you want in comp'n, or were you going to leave it to the bank.

 

5. Do you have a comp'n figure in mind and how is it made up.

 

You can certainly tell the bank you require suitable compensation and that you'll take court action unless they pay it.

 

But please don't send the letter until we've considered you replies.

 

[Northernbloke77]

Thanks so much for your responses so far. Your help really is invaluable. See my answers below.

 

 

1. Are you referring to the rent issue or are there other losses.

Just rent really, there haven't been any other serious financial outlays that I can put my finger on.

 

2. Have you got copies of the CRA reports showing the incorrect adverse data.

Yes, from both agencies.

 

3. Over how many years was this adverse CRA data reported.

We only found out about the Default in April this year, it was applied in Nov 2014

 

4. Are you going to specify the amount you want in comp'n, or were you going to leave it to the bank.

I was going to leave it to the bank.

 

5. Do you have a comp'n figure in mind and how is it made up.

No, this is completely new territory for me. Guidance welcome.

 

 

Thanks again.

NB

[slick132]

Hi NB,

 

What are you paying per month in rent.

 

If you level the level of comp'n to the bank, they will unsurprisingly pay the very least they can get away with. I think you should give them a figure you expect to receive.

 

I'll also seek input from the Site Team about the level of comp'n.

 

[Northernbloke77]

Hi again,

 

I pay £700 a month rent. The time effected is circa 6 months.

 

Can't put a price on the feeling of having to tell the kids we couldn't move into a home of own, finally. I spent 10 years diligently repairing my credit rating I cocked up as a youngster when credit cards were dealt out like sweets. Then ya get a kick in the balls by barclays, whom I've never done business with.

 

I'll await your reply. Really appreciate the help. Hopefully I can get a reply written and sent on Monday.

 

Cheers

NB

[BankFodder]

I think that you should start by making a careful analysis of your losses.

 

This means that you should assess the amount of time you wasted looking for a house, any costs associated with that wasted search. Any increase in value now of a similar house. Also, as Slick has said - the rent you have paid.

 

You may need to get the opinion of an estate agent and eventually it would have to be in writing.

I wouldn't start writing letters until you have a very solid idea of what this has all cost you and what you want to claim.

 

You are not in a rush on this. Take a few days to get it all down carefully and methodically and then let us know.

[Northernbloke77]

Hi,

 

It's really difficult to pin a number of hours we spent on the search for houses, also even more difficult to associated a value with those hours. We spent time viewing houses, so I suppose there is a fuel element, but it wasn't much in all honesty.

 

Rent is the only thing I can see which is a definite figure which we have lost out on. House prices in this area have remained pretty level this past year so there's no financial loss from that aspect. Though I suppose by now we would be 6 months into a mortgage and we would have had a small piece of equity which is worth something, but without knowing the exact breakdown of the mortgage equity to interest breakdown, it's difficult to place a number on.

 

Also I have no idea how to place a value on the misery Barclays have caused.

 

I intend to write back to them today and map our all the harm/loss they have caused.

 

Regards

NB

[slick132]

Hi NB,

 

Re time and fuel spent on house-hunting, I don't think you can charge an hourly rate but I'd include a nominal sum instead of £100.

 

6 months rent that you've paid, that you probably wouldn't have if the default hadn't delayed the house purchase.

 

Plus £1,000 for the incorrect default posted as a result of the bank's error.

 

Keep the letter brief and don't go into minute detail at this stage. Just keep it short and focused.