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  • FIRST POST
    • karimali831
    • By karimali831 8th Jun 17, 4:47 PM
    • 13Posts
    • 1Thanks
    karimali831
    Barclays defaulted my account?
    • #1
    • 8th Jun 17, 4:47 PM
    Barclays defaulted my account? 8th Jun 17 at 4:47 PM
    Hi

    So I made a dispute with Barclays as they defaulted my account for "not making sufficient regular payments" into my account. They rejected my appeal months later because although I had been making regular payments to pay off my £500 student overdraft, these payments were not sufficient enough. After checking my credit report I noticed the default.

    Looking at my report, from Feb 15 to Feb 16 there had not been much activity with transactions and was £500 in student overdraft (while I was student). I had been using another bank hence lack of activity. Went into Barclays to discuss my account, I was told that I needed to start making regular payments. So not having a job, I paid small amounts in making regular payments...

    Balances from Feb 16:

    Feb 16: -£500
    Mar 16: -£490
    Apr 16: -£450
    May 16: -£430
    June 16: -£420
    July 16: -£405

    On credit report, late payments as marked:

    Feb 16: 1
    Mar 16: 2
    Apr 16: DEFAULT

    They called me to say they rejected the appeal. I tried to explain I had been making payments to what I could afford at the time. He said the payments weren't sufficient and couldn't lift the default. They sent £100 compensation for the delay in dealing with the appeal.

    Their argument however was that they had been sending letters and there were no response to them. I noticed these letters were sent to my old address, and I'm at fault for not updating them with my new address.. I agree however is it still right they marked as default although payments had been made? They could see payments being made and still defaulted it! I was not told how much needed to be made or how often.. which sounds ridiculous to me? I was told at the bank it's not relevant how much needed to be sent, just payments had been made so the account would continue being active... any advice?

    Many thanks
Page 1
    • Flobberchops
    • By Flobberchops 8th Jun 17, 5:02 PM
    • 571 Posts
    • 399 Thanks
    Flobberchops
    • #2
    • 8th Jun 17, 5:02 PM
    • #2
    • 8th Jun 17, 5:02 PM
    Sounds like a Recoveries and Collections policy issue, meaning you'll be unlikely to appeal it successfully. By all means you could try, and contact the FOS after if you wish. It's annoying that they're not more transparent (I went through a similar issue many moons ago, with RBS) but I expect that's to encourage people to make an earnest effort to clear their debts rather than gaming the system and paying back exactly the minimum. The non-received mail is your fault, no doubt about that; you have a responsibility to inform the bank whenever your personal details change.

    Aside from the hassle, has this given you any particular distress or inconvenience? If not, I'd suggest you call it a fair cop and move on.
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • EachPenny
    • By EachPenny 8th Jun 17, 5:16 PM
    • 2,457 Posts
    • 4,074 Thanks
    EachPenny
    • #3
    • 8th Jun 17, 5:16 PM
    • #3
    • 8th Jun 17, 5:16 PM
    ...and use the £100 compensation to reduce your overdraft.
    "In the future, everyone will be rich for 15 minutes"
    • GingerFurball
    • By GingerFurball 8th Jun 17, 10:16 PM
    • 937 Posts
    • 885 Thanks
    GingerFurball
    • #4
    • 8th Jun 17, 10:16 PM
    • #4
    • 8th Jun 17, 10:16 PM
    So to summarise:

    Overdraft was run up
    OP uses different bank account so no regular credits come into overdrawn account
    OP moves address but doesn't tell bank
    Bank writes to OP asking him to either use account or overdraft might get pulled
    OP ignores bank because letters go to wrong address
    Bank pulls overdraft and issues demand for payment
    OP still hasn't updated address so doesn't receive this, starts making derisory payments towards overdraft (at the rate you were going it would have taken 5 years to clear it)
    Bank decide 'f*ck this' and defaults account

    Did I miss anything?
    DEBT FREE!

    Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
    Debt free by Xmas 2015: £1250/£1250 (100.00%)
    • EachPenny
    • By EachPenny 8th Jun 17, 11:34 PM
    • 2,457 Posts
    • 4,074 Thanks
    EachPenny
    • #5
    • 8th Jun 17, 11:34 PM
    • #5
    • 8th Jun 17, 11:34 PM
    So to summarise:
    ...
    Did I miss anything?
    Originally posted by GingerFurball
    Yes-
    Bank gives OP £100 'compensation'
    OP uses £100 to..........
    "In the future, everyone will be rich for 15 minutes"
    • Ben8282
    • By Ben8282 9th Jun 17, 3:00 AM
    • 2,040 Posts
    • 892 Thanks
    Ben8282
    • #6
    • 9th Jun 17, 3:00 AM
    • #6
    • 9th Jun 17, 3:00 AM
    I really don't understand why banks continue to allow overdraft facilities on accounts which are obviously not the holders main current account, do not receive any income and only have very small amounts of money or no money at all paid into them.
    What is your monthly income? Why you not have this income paid into this account? If you had, the overdraft would have been paid off every month (albeit perhaps re-used during the course of the month) and everything would have been fine.
    As it is, the figures above show an average monthly pay-in of £19. Paying in £19 per-month does not support a £500 overdraft.
    Overdrafts are repayable on demand. Presumably you were advised that the overdraft facility was being withdrawn and failed to repay. I don't think that it is a question of how much or how often; an overdraft is not a credit card or loan with fixed monthly payments. What the bank needs to see is turnover on the account.
    I also don't understand what you say is reported on your credit report in the context of the figures relating to the balances. How were you able to continue to pay-in to a defaulted account and how did you even know what the balances were after the default, as obviously once the account was defaulted you would not have had access to it through online banking and your cards would not have worked.
    You have absolutely no grounds for appeal or complaint whatsoever.
    Last edited by Ben8282; 09-06-2017 at 3:11 AM.
    • Chalkius
    • By Chalkius 9th Jun 17, 10:40 PM
    • 87 Posts
    • 31 Thanks
    Chalkius
    • #7
    • 9th Jun 17, 10:40 PM
    • #7
    • 9th Jun 17, 10:40 PM
    I'd say be thankful for the £100 and get that overdraft paid off. You could try and take this further, maybe to the FOS but I really don't see them asking to do anything different as you really should have updated your address, and that's what they'll get you on. I think the £100 is generous to be honest.
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