Barclays offer to close an account and write off amount 3 part issue ***Settlement Reached***

[Deb T]

Personal Account - Overdraft 6 k - Used to have a business but the business account was closed 10 years ago but the personal account was allowed to run due to the overdraft.

 

The account overdraft is still 6k and has been at that level owed for 10 years

each year they renew the overdraft simply because the 6k is still owed.

Each month a payment is made to the account that pays just the interest on the overdraft....

 

it used to be a very low interest account but over the years the interest has consistently gone up to quite a high level to the point where £100 each month is required to just pay the interest on the account so that it doesn't go above the 6k level and take it into the charges etc.

 

Over the years the bank have been contacted but do little,

at the start of 2011 the branch where the account was set up was visited to discuss the account to see if they'd transfer the overdraft to a loan and then close the account, at least this way the loan gets paid off where as the overdraft has stayed the same

 

( They were advised that the account was originally a personal account but they (the bank) changed it to a business one so as to allow for the large overdraft account (in 2000)

 

they were also told that the business account that was running at the time was closed due to the business folding....so one business account closed...but the personal one left open and then turned into a business one so as to allow for the large overdraft)

 

in any case they wouldn't transfer it to a loan and they then phoned a number to what they called a lender they use who may give a loan..

 

at which point the call was terminated by the account holder due to the fact that the bank was prepared to outsource but gave no details and expected the account holder to be ok with it? .

 

At this visit it was mentioned to the bank employee that the account had not been used other than to service the interest on the account for 8 years (prior to that it had been used very little for 3 years previous) the employee didn't seen to give a hoot.

 

When they were asked to provide a business manager that could speak to the account holder they were told that the account manager that used to deal with it had moved on, that a new account manger had not been allocated and for the account and a different more senior branch would need to be visited. They had business account managers at the branch, just not one for this account...which is ridiculous. Consequently a dead end and the account holder left the branch and continued to make the payments....and still does.

 

Problem is, they have a credit card with the same bank, they've maintained the credit card payments and have got an excellent record with the credit card side of things, but the business/personal account just isn't going down and they cannot afford to pay it off, they've tried working it out with the branch but got nowhere.

 

So what to do?

If they pack in paying the overdraft they'll get a problem on their credit file, the credit cards will more than likely be removed and all that after having a faultless record with the credit card company and in the case of the overdraft it's never gone into the unauthorised part but the debt is the same now as it was 10 years ago....

 

What I don't understand is that the bank every year are supposed to look at an overdraft on an account and either suspend it and call the debt in in it's entirety or extend it if the account is well facilitated

 

but given that nothing but the amount for the interest has been paid then and the account therefore not being well facilitated why haven't the bank closed down the overdraft?

 

Are there any grounds to approach the bank given what has been stated above? also, is it not irresponsible lending on their part?

 

Who to approach?

 

Anyone?

[jdes26]

Why don't u try and set up a payment plan

Freeze interest and use the fair games rules

See Bankfodders threads

[Deb T]

Crux of the matter is:

 

Opened a Personal Account and Business Account with Barclays in 1997, business was a partnership that ended in trauma

so partnership dissolved in 2001 with the personal account then having it's overdraft extended to that of a business overdraft of 6.5k and which was maxxed.

 

Interest charges for the 6500 have gone from around £25 a month to now just shy of £130 a month. The amount outstanding on the overdraft is no different to what it was 12 years ago and the account has not been used to draw money or pay any bill for 8 years. The only money going in has been to meet the interest payments each month so as not to take it above the overdraft limit.

 

I have been in to the bank on numerous occasions asking them to either:

Freeze the account balance so that the amount is reduced each month.

Convert the account into a loan.

 

On one occasions 3 years ago they sat me down, worked out that I was not a good credi trisk so wouldn't transfer the overdraftto a loan and went on to make a call to what they said was another part of their business and discuss my account with them,they called then handed me over to someone who announced himself as 'Woolwich' and how could he help at which point I terminated the call given I had not given Barclay's my permission to speak to a third party re my account..

 

On several occasions I've visited the bank with a view to speaking to the business manager as it's a business overdraft on the account only to be told that the person dealing with my account from years ago was no longer working in the branch and nobody else could talk to me as it was not a standard business overdraft account. This also extended to when I tried to talk to a 'personal banker' who after jumping through hoops to talk to decided they were not able to deal with the account.

 

Having recently visited the branch again I got pretty much the same answer, nobody could talk to me save to tell me that the amount owing is what has to be paid...when I mentioned I'd tried over a number of years to get some help with the account they went suddenly deaf.

 

I asked that they supply me with the terms & conditions of the account when first opened, they could not (understandable

given how long the account has been open) but then offered to give me the latest ones ... I asked if they were relevant to when I signed up to the account but they could not give me an answer.

 

I want the terms and conditions of the overdraft account as it seems to be a specialist account as they do not offer the amount of overdraft I have to personal customers....only buiness customers. That being the case I'd like to be able to trawl thorough the account tocs to see what actually gives.

 

I seem to recall that each and every year the account is supposed to be given a review to make sure it's being run correctly and when they have satisfied themselves that is the overdraft is continued. As there has been no activity on the account other than interest payments taken by barclays for the last 8yrs at least I'm not sure that the account has been run by them in the correct manner.

 

My dilemma was that should I get them to look at the account they would simply close on the overdraft and call it in and where I would not be in a position to pay and thus my credit file becomes marked. However, I was also led to believe that a business overdraft does not fall under the same terms and conditions (which is why i wanted them) as a personal account and as such as a business overdraft when exceeded and unpaid is not added to your credit file?

 

Any clues as to who I should be leveling my complaint at within Barlcays because frankly they are utter rubbish at branch level.

 

I should also add that I have a MasterCard with them which has been running without any problems for 15+ years, there is a sizable amount on it but it reduces each and every month when paid and occasionally I do use it.

 

At the death, the amount over drawn on the overdraft was at it's maximum allowed of 6500 12 years ago, I have met every interest payment on it since, it has never gone overdrawn and no charges other than interest has been applied to it, the amount outstanding as of todays date if £6497.12

 

Since last using the account 8 years ago I've paid approx £9230 in interest...

 

Deb

Edited July 16, 2013 by citizenB
formatting

[BRIGADIER2JCS]

Hello Deb,

Some points jump out at me straight away:

 

1. You say that no financial transactions have taken place for 8 years correct? But you have met the 'interest ' on the account without fail?

 

2. The continuation of the account in this way would be appear to be an unfair business practice as the bank has already earned nearly 3k

on top of the outstanding balance.

 

3. You should perhaps take a look at BCOBS which may well be of some help here!

 

4. Have you made a formal written request to the bank for the closure of the account and the freezing of interest ?

 

5. Has all dealing with this account been verbal in branch and did you get any written confirmation of what had been said at the meetings?

 

6. Finally you say this was a partnership / joint account. were both parties signatories on the account with joint liability?

 

I'm going to see if I can find others to assist you.

[BRIGADIER2JCS]

SOS sent for you!

[Deb T]

Hi, thanks for coming back to me:

 

1. You say that no financial transactions have taken place for 8 years correct? But you have met the 'interest ' on the account without fail?

 

----- Yes, not a single missed payment or the account going into an unauthorised overdraft

 

2. The continuation of the account in this way would be appear to be an unfair business practice as the bank has already earned nearly 3k

on top of the outstanding balance.

 

------ Yes, thats how I see it...but they appear not to

 

3. You should perhaps take a look at BCOBS which may well be of some help here!

 

-------- I will do that now

 

4. Have you made a formal written request to the bank for the closure of the account and the freezing of interest ? ....

 

------ No, simply because I was concerned they or their bloodhound Mercers would have added the debt as late payments and whatever else due to me not being in a position to pay them.

 

Last month at branch level the member of staff I spoke to told me my credit file would be affected if I ceased to pay it. It's why i was querying if a business overdraft affects a credit file like a personal one can/does

 

5. Has all dealing with this account been verbal in branch and did you get any written confirmation of what had been said at the meetings?

 

---- Yes unfortunately all at branch level and nothing in writing...

 

6. Finally you say this was a partnership / joint account. were both parties signatories on the account with joint liability? .

 

..... It's hazy and it's been 16 years since we set up with Barclays,

I do know that at one point the other party to the business account was able to take all the money from it and close the account without my signature,.

 

.I can't remember how or why my account became overdrawn by 6.5k but that

was in 2001, I don't have statements for it and I don't think they're available that far bac,...So to keep things easy lets assume I ran up the overdraft .....

 

I should add that my particular overdraft account is not listed on barclays website, I cannot find it in either the business or personal sections, in essence it no longer exists save for them to cane me for interest each and every month.

[BRIGADIER2JCS]

OK Deb, I think the information you have given will assist, have alerted others to take a look at this for you as said, not my field of expertise sorry to say.

Have to say I find the banks conduct appalling, verbal meetings and no written conclusions is well out of order.

 

The people alerted will be along asap.

[ims21]

Hi Deb

 

Have you read up on BCOBS yet.

 

If you have you will know that it came into force on 1st November 2009 and aplies to small businesses as well as individuals.

 

If you are going t challenge the bank under BCOBS then there will be a bot of work involved and to satrt with it would be useful to have a chronology of events as far as you can recall them. If you have dates of meetings and things that were discussed then that would also be useful.

 

It would also be useful if you could be a bit specific about what events have occurred after 1/11/09 separately from those pre 1/11/09. Although it is possible to wrap up the whole relationship in the complaint the breakpoint information could be useful.

 

When was the last time you visited the bank to try and talk about this?

 

Have you got any written notes that you made yourself on these goings on or any letters from the bank concerning the account? If so, what have you got?

[slick132]

Hi Deb,

 

You say you managed to service the interest payments monthly as required by the bank. If thiat is the case, I assume the account balance has remained fairly constant and it's not reduced. Is that the case.

 

Would you say you have been suffering Financial Difficulties over the last two years (since the Lending Code came into force in 2011).

 

As well as help from the BCOB Regn's, you may find some help from The Lending Code which imposes a duty on the bank to assist customers who they know, or they could be expected to know, are in FD's. See more about this here - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

[Deb T]

An update to this almost five years on....I could cry (but i won't)

 

For one reason or another I was not able to pursue this at the time, although I did take a look at bcobs and considered my options

 

Here is the update:

It's been approx 54 months (4yrs 6 months) since my original thread.

 

Thats 54 interest accruing interest added dates.

 

I've made all of those 54 payments since the initail post (along with the many many years before)

 

Barclays change their interest rules/switch the account details every now and again, of those 54 payments since my last update, 54 of them have been for a minimum of £100, sometimes a little more, whatever the interest levied I make sure that amount is paid in, sometimes a few £'s more.

 

There has been no activity on the account since I last wrote other than barclays adding interest and my making a payment in each month (by hand at a branch) no withdrawals, no card use, no payments out.

 

I have been on the account via online, first time in a long time, nothing has changed.

 

I have been in to a few branches since, one just last week and asked to speak to someone, everytime I do they ask the questions, they take my card, look at the account and can see what i've explained above..

 

.when i tell them it's been like this for nearly 18 years they do one of three things, first of all their draw drops, then they consult with another member of staff, then they say there is no one in the branch that is able to discuss the account and i should ring customer services.....

 

Here is a nugget that I was able to glean from info online and last statement available to me on line...

 

All figures below are close to the balance but not exact, don't want them recognising me from this (yet)

 

JAN 2009 Statement 'End Balance £6489.14

JAN 2018 Statement 'End Balance £6401.03

 

Payments made 96 months at no less than £100 or £9600

 

Balance reduced in the last 8 years £88.11p

 

That is the same almost all the way from 2001, there was some account activity in 2007 but nothing that took"it past it's executive overdraft..

 

..In short approx £20k has been paid on this overdraft,

I was not originally responsible for it,

it was transferred into my name with the failed business partnership,

things got messy and thats how it stayed.

 

Every month Barclays send me a letter advising me of my charges upcoming (interest on overdraft

 

Every year Barclays send me 1 annual statement

 

It is classed as an 'Executive O/D Flex (that named account no longer exists)

 

It's classed as my personal account (which is only use for paying/servicing this overdraft

 

Barclays from time to time send me a letter saying they're reviewed my account and nothing has changed (if they really had reviewed it they'd have called it in (the overdraft) surely?

 

I have a clear credit file, if I stop paying Barclays will mark my credit file even though the account started as a business account ( is it right they cant Mark your credit file with a business account)

 

I have been in to branches, nothing has sorted, as per my above comments, nobody at the original branch exists from when i took out the account, nothing of any relevance has been sent to me from Barclays by way of acknowledging the account.

 

In short I have no idea what to do,

I've read to the death re Barclays and them not being particularly helpful and I'm really loathe to stop paying or for them to call it is as my credit file will be marked and it's taken me a very long time to get it to be blank so to speak

 

What I really need is the name of someone in Barclays I can call and say 'look, what do you think' and for them to pop off, take a look, see what gives and then come back to me with 'ok, we've closed that account, there is nothing more for you to pay' as in someone at barclays that has the power to do this.

 

Thats my rant over for this year.

[theoldrouge]

Does this appear on your credit file at the moment

 

I would suggest an immediate SAR to

Barclays to see exactly what they hold

[slick132]

Hi DebT,

 

I think writing to The CEO is your best bet, saying you've serviced this for years paying £000's in interest despite it not being your sole responsibility. Ask them to write off the balance as it's been paid many times over.

 

Because you've done "the right thing" for all these years, you WILL be penalised via you CRA files if you stop now. Of course, on reflection, you should have stopped paying them years ago, or paid off the capital.

 

If your credit files get trashed now as a result, is that a major worry for you for the next 6 years ?

 

[dx100uk]

I would suggest this was default years ago and has already dropped off under the defaults reached its 6th birthday

[Deb T]

No default, account is still live, still serviced (by me)

 

In almost 18 years , almost 216 monthly payments re interest the debt has decreased in total just under £100 to just over 6.4k (overdraft limit is 6.5k.

 

Account has never gone over the overdraft limit

Account has never dipped below 6.3k

Account in last 10 years has not been drawn on

( no transactions other than interest added by the

Bank/payment made by me to cover that monthly amount)

 

Of those 216 payments by me, none have been late

and none have been missed.

 

In total the payments made ( since posting earliern

 

I’ve been able to go through all paying in receipts and I’ve paid is just under 24k’ lowest payment £100, highest £125.

 

I’d write to the ceo if I thought they’d listen

[dx100uk]

sar them

[Deb T]

Other than the obvious of what a sar provides, is this really the best way for my first opening move?

 

What I'd like is to try as my first port of call is to try and target someone within Barclays that has the ability to make a decision on an account

A

where they are able to read my letter /look at the account in it's entirety and are able to knock the account into touch without any further payment or debt being incurred by me.

 

I feel sending a SAR as my opening gambit will simply alert the minions in customer service to my account who will see

whats in front of them 'the computer says no' type scenario, and simply recall the 'overdraft' quoting T's and C's as 'payable on demand,

 

leaving me as just as a statistic having to fight from the very bottom of the ladder whilst all the time incurring further charges or letters of demand or bad credit rating, none of which I think I deserve.

 

(not saying that I'm special or deserve special treatement, just that unsual circumstances require maybe some higher up intervention on barclays account.

 

Who and where to write to is probably where I want to try and go first.

[dx100uk]

always best to get the facts first

an sar doesn't alert anyone

its a legal right.

 

which is something you should have done years ago to get the picture as the bank actually see it

then you can be in a better position to suggest a way fwd.

[Deb T]

I'm not sure the bank see anything other than a money trap,

any review of the account if done by a human would see the activity on the account

and call it in or at least call me in...

 

...I forget the exact terminology they use in their 'reviews' but it's not consistent with how the account should

be run.

 

As for the facts,

I'm with you on that,

but feel in the case of the sar should be a secondary prong, not my first

 

yes with hindsight I should havedone it years ago

but with everything else I had going on both my own and families

(debt/mortgage and dca's) it got left as the last thing to do.

[dx100uk]

what you think they think it totally immaterial

get the facts and read the comms/account log

then you will KNOW what they are thinking as it will all be in the account log .

[theoldrouge]

Absolutely no point in complaining blind

 

You need to know every detail they hold

 

For example the basis on which the account

operates, how and when the overdraft

has been reviewed etc etc

 

It will all be in the SAR

[AndyOrch]

Then issue a court claim and claim it all back with 8% interest over the 10 years.

 

 

Andy

[slick132]

Hi Deb,

 

1. I asked earlier, and ask again, would it be a worry for you if your credit rating was trashed. Eg, are you likely to be seeking a loan or mortgage in the next 6 years.

 

2. Also, could you repay the capital owing now if you needed ?

 

SAR is an absolute must and should be done as your first move. You need all the info you can get !

 

If they decided to recall the OD now after so many years (as you suggest in post #14), you would have a great case against the bank for unfair treatment seeing how long they've allowed the OD to run without activity on the a/c, taking the interest month after month.

 

Get the SAR sent off now !

 

[Deb T]

DX100/ - Ok, I've grabbed a Postal Order today for the SARS and will send it on the morrow, has the template for a SARs changed? Is it different for

an Bank Account or parts to be removed? Where can i find it please.

 

theoldrouge, Yeah I get that, just didn't want it to be my first line in but i'll go with it

 

andyorch, If I thought I had a chance I'd give it a go, but I'm guessing as it's fees not charges it doesn't apply.

 

Slick, apologies for not answering you the first time. Yes it would be a worry, I already have some of what you mention

and I'd like to resructured things but a marked Credit File would pretty much rule that out....

 

No I'm not in a position to pay of the capital amount or even lend for it but I wouldn't want to anyway, I've paid almost

3 times the overdraft amount since it's transferring to me almost 18 years ago.

 

I'll update as and when

[dx100uk]

click sar

[dx100uk]

I would guess this OD was defaulted years ago is not showing?