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  • FIRST POST
    • Carrie_bie
    • By Carrie_bie 29th Nov 17, 12:27 PM
    • 11Posts
    • 3Thanks
    Carrie_bie
    The cycle of overdraft charges
    • #1
    • 29th Nov 17, 12:27 PM
    The cycle of overdraft charges 29th Nov 17 at 12:27 PM
    I'm asking for some advice on behalf of a friend, so I apologise in advance if I'm not able to give really detailed specfics.

    I've been helping her organise her finances, but there is one thing I'm not sure how best to tackle. She has an impressive ability to bury her head in the sand about financial matters, and it very capable of not opening years and years worth of post.

    Back in early 2014 when we started on this journey, she came to visit me with a couple of carrier bags full of letters.

    She has an old Barclays account from when she was young that she stopped using about 18 months before, and has her ex-boyfriend's parent's address linked to the account. As far as we know, this is the only one of her financial accounts that is linked to this particular address. Her ex's parents used to give her the letters whilst they were still together, although she didn't open them (obviously), and since they broke up in 2014, she hasn't seen any letters.

    The problem is that before she decided to stop using this bank account (around 2012), she became overdrawn by about £150 into an unauthorised overdraft. When we finally opened the old post in 2014, we found that this Barclays had charged her for going overdrawn unauthorised, and then had charged her again as the charge had made her even more overdrawn. After that, every month they had repeated this process taking the initial debt from about £150 up to around £1500 to the date of the last letter we had.

    At the time we urged her to contact them and stop it growing, but I think it was too much for her at the time and she knew she would struggle to pay it off alongside everything else we were sorting out. She was insistant that if they don't hear from you for 8 years they will wipe the debt.

    Now 3 years later, she's trying to sort out all her finances as she wants to be less stressed and "go legit", but still has this Barclays account hanging over her. She has a credit file which isn't bad, but she hasn't included her ex's parent's as a place that she is linked to. She was recently found by a ten year old mobile phone debt (~£800) after she financially linked herself with her mum's current address. Her mum is also terrible at dealing with financial matters, and also never opens her post.

    My first thought is to contact Barclays and enquire, then see if they will reduce/remove the charges (which must be massssssive by now), but I don't want to advise this if actually ignoring it would be a better option. The last thing she wants is to have baliffs/CCJs appearing for this debt - though she probably wouldn't know as she never opens her post....

    Any thoughts on our next steps are much appreciated....
Page 1
    • DebtFreeDuo
    • By DebtFreeDuo 29th Nov 17, 2:48 PM
    • 619 Posts
    • 3,019 Thanks
    DebtFreeDuo
    • #2
    • 29th Nov 17, 2:48 PM
    • #2
    • 29th Nov 17, 2:48 PM
    I can't advise anything on whether it's best to ignore but I know you can claim unfair bank charges so it may be worth looking in to that and then contacting Barclays? I'm sure someone who will be a lot more help will be along shortly.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • StopIt
    • By StopIt 29th Nov 17, 3:11 PM
    • 1,449 Posts
    • 1,239 Thanks
    StopIt
    • #3
    • 29th Nov 17, 3:11 PM
    • #3
    • 29th Nov 17, 3:11 PM
    I can't advise anything on whether it's best to ignore but I know you can claim unfair bank charges so it may be worth looking in to that and then contacting Barclays? I'm sure someone who will be a lot more help will be along shortly.
    Originally posted by DebtFreeDuo

    Not true.


    The banks won the unfair banking charges lawsuit and now will only suspend interest and charges upon cases of financial hardship.


    Is the debt still with Barclays anyway? Tell your friend to check all 3 credit files (Clearscore, Noddle and the MSE Credit Club cover all 3 and are free) and make sure the debt hasn't been sold on.


    If it hasn't and is still accruing charges, you can appeal for them to default the account, stop all interest and set up a payment plan.


    What she says isn't 100% wrong. After 6 years of non payment or written admission of a debt, it becomes statute barred and cannot be successfully enforced at court AS LONG AS IT IS DEFENDED. You can still receive a CCJ for a statute barred debt, which would need to be set aside, so it is never a good idea to ignore debts if a DCA starts threatening litigation at any time.
    Last edited by StopIt; 29-11-2017 at 3:13 PM.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • DebtFreeDuo
    • By DebtFreeDuo 29th Nov 17, 8:40 PM
    • 619 Posts
    • 3,019 Thanks
    DebtFreeDuo
    • #4
    • 29th Nov 17, 8:40 PM
    • #4
    • 29th Nov 17, 8:40 PM
    I stand corrected, I wasn't aware that there had been a change just that I had some unfair charges refunded a little while back. Thank you for correcting me and providing more helpful advice.
    Loan:1780.49 2207.38 Car Loan:2039.22 2419.64 0% CC:984.98 1063.48 Overdraft: 860 Overpayment:1781 Total: 7445.69 DFD Dec 18
    SPC 586
    • sourcrates
    • By sourcrates 29th Nov 17, 11:50 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    • #5
    • 29th Nov 17, 11:50 PM
    • #5
    • 29th Nov 17, 11:50 PM
    Is your friend been actively chased for these debts ?

    Do they have her current address ?

    No one wipes debt just like that, the limitations act has no bearing on this as it’s not yet been 6 years.

    As said above, check credit files first, see what’s going on there.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • sourcrates
    • By sourcrates 29th Nov 17, 11:58 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    • #6
    • 29th Nov 17, 11:58 PM
    • #6
    • 29th Nov 17, 11:58 PM
    I stand corrected, I wasn't aware that there had been a change just that I had some unfair charges refunded a little while back. Thank you for correcting me and providing more helpful advice.
    Originally posted by DebtFreeDuo
    Banks will, if asked, wipe charges accrued unintentionally, on at least one occasion per year, as a matter of goodwill.

    So you are correct in that respect, itís just the mainstream reclaiming of charges (unless your in financial hardship) has now ended due to them winning there case in the court of appeal.

    That doesnít mean to say that itís not worth trying to get a refund, just be nice, polite, and sometimes itís reciprocated.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Carrie_bie
    • By Carrie_bie 30th Nov 17, 4:09 PM
    • 11 Posts
    • 3 Thanks
    Carrie_bie
    • #7
    • 30th Nov 17, 4:09 PM
    • #7
    • 30th Nov 17, 4:09 PM
    Thanks everyone, I have sent her this convo so she has seen all your advice, and has duly noted that no one advised to continue ignoring it...

    She's going to set up all three free credit file sites - she already has the MSE credit club. I will report back on what we find.

    She pretty sure they don't have her current address, but I guess it's possible they could derive the link. She said she opened that account when she was under 18, and thinks she stopped using it around 2005, not in 2012 as I originally thought.
    • FTBuyerGlasgow
    • By FTBuyerGlasgow 30th Nov 17, 10:24 PM
    • 17 Posts
    • 13 Thanks
    FTBuyerGlasgow
    • #8
    • 30th Nov 17, 10:24 PM
    • #8
    • 30th Nov 17, 10:24 PM
    I 2nd what Sourcrates says, there's a few Credit Agencys you can get free access to your credit report and a monthly Report, all free of charge.

    Not least of which is MSE's Credit Club, I'm signed up to that and Noddle, everything is laid bare, financial accounts, linked addresses etc.
    Started out with nothing, still got most of it left.
    • Carrie_bie
    • By Carrie_bie 11th Dec 17, 1:44 PM
    • 11 Posts
    • 3 Thanks
    Carrie_bie
    • #9
    • 11th Dec 17, 1:44 PM
    • #9
    • 11th Dec 17, 1:44 PM
    Is your friend been actively chased for these debts ?

    Do they have her current address ?

    No one wipes debt just like that, the limitations act has no bearing on this as itís not yet been 6 years.

    As said above, check credit files first, see whatís going on there.
    Originally posted by sourcrates
    So, we've checked the three free credit referencing agencies, and none of them reference the address that this account is linked to (her ex's parents' house). Her address history list on all three only goes back as far as 2010.

    The dilema we have now is whether to add another old address, or whether to just leave it well alone.... could the connection be figured out another way and then suddenly these old addresses will appear on her report?
    • sourcrates
    • By sourcrates 11th Dec 17, 4:05 PM
    • 12,673 Posts
    • 12,011 Thanks
    sourcrates
    So, we've checked the three free credit referencing agencies, and none of them reference the address that this account is linked to (her ex's parents' house). Her address history list on all three only goes back as far as 2010.

    The dilema we have now is whether to add another old address, or whether to just leave it well alone.... could the connection be figured out another way and then suddenly these old addresses will appear on her report?
    Originally posted by Carrie_bie
    One more thing i would do, i am assuming that none of her credit files shows a CCJ for this, or any other debt ?

    If that's the case, then i would check :

    https://www.trustonline.org.uk/search-yourself

    Just to see if one has been registered under her name at an old address she no longer lives at.

    If she updates her old addresses on her credit files its more than likely to trigger a creditor reaction, at the moment it looks as though she is "off the grid" so to speak, its up to her now how to proceed with this.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
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