Barclays wrote off OD debt, now saying I still owe

[mahharg]

Hi all

 

Just a quick one for those in the know.

 

Back in 2015, I was on a payment arrangement for a bank account overdraft.  The account was closed and I was paying something like £20 per month on a payment arrangement.

 

Out of the blue in 2016 I got a letter from Barclays collections stating:

 

Account number ********

Outstanding Balance £0:00

 

Dear me

 

Your debt is now considered satisfied and can confirm that no further action will be taken against you.

 

Any standing orders or direct debits you have set up in favour of this account should be cancelled.

 

yours sincerley

your collections and recoveries team

 

My balance at the time was over £1000, so I was very happy with the letter.

 

Anyway long story short, I had to phone barclays regarding a diiferent loan that I'm on a payment arrangement and the recoveries team are saying that I owe the money on the bank overdraft account.   I complained to the complaints team.  I was informed that the letter that I received in 2016 was issued in error and I still owe the money.

 

I was further advised that it was up to me how I approach this.

What do you suggest, should I pay or should I abide by the letter issued in 2016?

 

Thanks guys

Edited September 9, 2019 by mahharg
missed text

[slick132]

Hi Mahharg,

 

Stay OFF the phone and keep all contact in writing only, so you have a papertrail.

 

If you did have to speak to the bank on another matter, you should have refused to discuss the issue of the overdraft that was written off as per their 2016 letter.

 

Keep the letter safe for future reference in case someone tries to collect for the o/draft again.

[mahharg]

Thanks slick123

 

That letter is going nowhere.   I don't bank with Barclays anymore and I did say that I don't want to talk about it on the phone. 

 

It's the "I can decide what to do next" comment that makes me think they are aware that if I didn't pay it, they couldn't do much about it.

 

I just need to know with the letter, could I legally not pay it?

 

Barclays have admitted it's their error in sending it in the 1st place.  I haven't paid a penny in over 3 years.

Edited September 9, 2019 by mahharg

[slick132]

If they wrote saying the debt was written off, I'd say you have nowt to worry about but see if others agree.

 

[mahharg]

That's what I'm thinking especially when they were kind enough to show the balance as zero.  But as you mentioned, let's see what others think. 

Thanks Slick 

[BankFodder]

This case has a slightly interesting parallel with a another case on this forum which I will try and find and post up for you.

The collections department at Barclays seem to be extremely aggressive and appeared to be completely prepared to ignore letters which have gone out announcing that a customer will not be held liable for repayment of a certain sum.

Have you looked at your credit file? What have they said about interest over the three years that nothing is been paid? What do they say the outstanding sum is at the moment?

I would suggest that you send Barclays an SAR you need a very thorough disclosure of everything and you might find that there are some interesting internal notes on this as well as true reasons for which you were sent the letter. It might not have been an error at all. It might have been deliberately sent by a different department and then the collections department have disagreed. This is rather the case in the other thread that I have referred to on this forum

[BankFodder]

 

There is a similarity to the extent that Barclays permitted money to be withdrawn from a joint account by an estranged husband even though there was a block on it. Barclays then wrote to the wife telling her that it was their error and she would not be held liable. Despite that there has been at least one attempt to repossess the property and there are still ongoing threats.
A release of internal memos shows that it is the collections department which is causing all the trouble

[mahharg]

The account was closed down in around 2013.  I had 2 loans and this overdraft that I was struggling with.   So all 3 were sent to collections.  All 3 were defaulted and have now cleared off my files. 

 

I just think I'll let my complaint run it's course then guard it to the ombudsman. See what they think. 

I think what you say is right. The errors appear to come from collections.  Even the complaints team can't appear to overrule them. 

Edited September 10, 2019 by mahharg

[mahharg]

Just to claify a few points before I rush off to work.  

 

All 3 were sent to internal collections.

 

The letter regarding the owed overdraft from the closed defaulted bank account came out of the blue in 2016.

 

No attempt to recover the money was ever attempted since the letter

 

Only due to a phone call regarding the loans that I was told there was an outstanding balance (no interest added just the balance as off 2016).

 

complaint informed me the letter was sent in error and the balance is still owed....apparently. (verbally)

 

I will be waiting for a final written response before going to the ombudsman.

 

Thanks guys   have a nice day

 

 

[mahharg]

A quick query.  Do banks have to send periodic statements? 

 

I ask because if the written of letter was issued in error, I'm wondering if the bank have broken any rules because I've had no statement for 3 years (since the letter) 

I also question why I have not been chased regarding the outstanding?

 

I honestly believe it wasn't issued in error at all. 

[AndyOrch]

Only on a pre arranged overdraft ....

 

(9)This section does not apply where the holder of a current account overdraws on the account without a pre-arranged overdraft or exceeds a pre-arranged overdraft limit.

 

https://www.legislation.gov.uk/ukpga/1974/39/section/77A

 

Andy

 

 

[BankFodder]

Send the SAR

[mahharg]

Complaints manager has now confirmed that the account is classed as satisfied as per 2016 letter and I won't be persued for the remaining.  

I will be getting a final response letter stating that .