Placing account in dispute?

[Andy-t]

Hi,

 

I've read a few posts on here where people are talking about placing the balance on the account in dispute where by the bank can not apply any further charges to the account until the issue is resolved.

 

Is there any legal standing for this? Where in the process can you place an account into dispute, is this only after legal proceedings have commenced?

 

At the moment, I am a month in arrears on a loan payment and im finding it very difficult to make an additional payment due to the volume of charges coming out of my account due to the arrears. Over the last 3 months, I've paid over £600 in charges due to missing a payment of around £250!

 

If anyone knows how I can get out of this (rather expensive) circle I'd be eternally grateful to hear!

 

Cheers

 

Andy

[lucid]

Hi Andy,

 

I don't think disputing your account will stop them from adding charges - it didn't with us. Section 13.6 of the Banking Code says that they will not pass on information to credit reference agencies if the account is in dispute.

 

The best thing you can do to get out of the loophole (if you can't get a lump sum to bring the balance up to day - which is going to be very unlikely for some) is to reclaim your charges. You could try talking to them and seeing if they be willing to cancel charges due to come out, in the hope that you can catch up with your payments. It may be very unlikely that they wil do this but you won't lose anything by trying.

 

Good luck. Lucid

[Andy-t]

Thanks Lucid..

 

Though it wasn't the answer I wanted to hear It's REALLY frustrating.. I could pay the arrears but can't come up with a lump some to pay the arrears and the charges together.

 

I'll try calling the bank though don't fancy my chances too much as my intention to claim back charges should be more than clear to them by now.

 

Out of interest though, how do I go about placing my account in dispute? At least that way it will stop them from screwing my Credit rating further until such a time I can either pay it off myself or pay it off with my huge refund

 

Andy

[lucid]

Hi Andy,

 

The balance of the account becomes in dispute form the moment you begin action against them to reclaim your bank charges. I'm assuming you have begun action as you say your intention for reclaiming bank charges should be clear to them by now.

 

Lucid

[Andy-t]

ok, my bank are now giving me 28 days to pay off my entire overdraft or they say they will close my account and pass details of my debt to them to Credit reference agencies.

 

Made a SAR request on the 26th Feb, thus far, no satisfactory response has been made. Is this enough to class my account as "in Dispute" and stop them further damaging my credit rating or is there anything further I need to do?

 

A

[c_allen]

just write to them stating that you dispute the amount, therefore the account is in dispute, also say that if they don't understand what this means, to ask their legal dept:D , keep a copy yourself and send 1 recorded, remind them of the time limit for your SAR

[tiaposy]

My oh was over his overdraft with Barclays by £70.00 - his overdraft being £250.00. I am in the process of claiming back the bank charges (about to go on MCOL) so sent them a letter saying the account was in dispute.

The sneaky sods rung my husband up and he paid them the £70 with his business card!!