We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Barclays adding interest after redemption

SteveW12345
Posts: 1 Newbie
Several years ago I took out a mortgage with the Woolwich that included a mortgage reserve account. Essentially, this allowed me to have an overdraft equal to the portion of the mortgage I had repaid. A year ago it was taken over by Barclays who renamed the reserve account to Barclays Mortgage Current Account. A month ago the mortgage was redeemed in full and I moved house. Today I get a statement for a Barclays current account that I didn't know existed. It turns out it has been converted from the paid-off Mortgage current account that was included in the redemption figure.
This new account has a balance of -£149 which Barclays are saying is unpaid interest and was deducted from this account twelve days after the mortgage was redeemed. Prior to that point this account had a zero balance. The statement shows another £66 will be deducted in October. They are charging me fees and interest on this money. As far as I am aware, once a mortgage is redeemed, it's over with. I didn't ask for this current account and they set it up without contacting me first. Now they refuse to close it and insist I owe them the overdraft.
Is any of this legal or can I just tell them to get lost?
Steve
This new account has a balance of -£149 which Barclays are saying is unpaid interest and was deducted from this account twelve days after the mortgage was redeemed. Prior to that point this account had a zero balance. The statement shows another £66 will be deducted in October. They are charging me fees and interest on this money. As far as I am aware, once a mortgage is redeemed, it's over with. I didn't ask for this current account and they set it up without contacting me first. Now they refuse to close it and insist I owe them the overdraft.
Is any of this legal or can I just tell them to get lost?
Steve
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards