Barclays closed acc:no reason given

ShelfStacker_3

bigjat wrote: »

Thanks for the replies guys, just back from Turkey. To answers a few points. No i did not pay any money into the account but, as i was clearing my barclaycard each month i thought this would hold me in good stead. I realise now that that is a seperate entity even though all cards were issued at the same time.

An account is its own account, and its payment record is seperate. If I paid back my overdraft each month, it doesn't entitle me to skip payments on the credit card.

I did not pay any money into the account, mostly due to running around setting up a new business, but surely charging me every month would make the bank money in the long run as the admin work, card issuing etc had already been done. As long as i was within my agreed overdraft limit the bank is still making its £3-a-month as that will have to be repaid at some point, and even more in charges had i gone over the limit.

But, it's in the terms and conditions that you have to pay money in. No bank is going to let you stay overdrawn for months without a credit.

The "but you'll make money" thing tends not to fly with banks. The fact that you'll pay charges doesn't mean you can break the T&Cs and suffer no consequences.

I hope it will not affect my credit rating as the letter does state that if they are asked about the account they will 'decline to comment'.

That most likely refers to a bank reference, where they're asked about the account. They will probably however refer it to a credit reference agency, as in, tell them about it.

Seems to me that Barclays offered a £100 interest free overdraft for just £3-per-month. I think it was a case of pulling the plug due to the bank not having cash reserves to honour that.

Barclays has plenty of cash. They pulled the plug because you didn't abide by the terms and conditions of the account, simple as.

Bear in mind that at 18.9% APR, the interest paid on a £100 OD for one month would be about £1.60. You were getting swindled.

If there were another million account holders who paid nothing in and could potentially withdraw £100 intrest free thats £100 million that they would not get a penny for, hardly pocket change in the current climate, even for a bank.

See above.

I can understand the pressures and reasons why they may have closed the account but i just wish they had been a bit more honest, open and not so patronising when they shut the door on me. Had i been asked to do so i would have been more than happy to clear the overdraft and pay in a small amount by standing order each month.

Erm, when you default, banks generally aren't happy, smiley and understanding. They shouldn't HAVE to ask you, because the monthly pay-in condition is a part of a legal contract with you agreed to.

Basically, your entire attitude is "but, I was doing what I wanted, and the bank is being mean and nasty." But they're not, it's your fault for making a number of silly assumptions which don't stand up. I'm not a huge fan of Barclays, but you extracted a decent amount of urine here. Dont expect any other bank to treat you any differently.

Extant

bigjat wrote: »

The original letter says
"Please also note that if we recive any request for a ststus report about you and your account, we will reply that we regret we are unable to to express an opinion."

This is different to us adding to your credit report. A status request is when somebody writes to use and asks us if bigjat is good for paying his rent, or something similar.

pisu

Even i received a letter like the one stated above and even i got the same answer that they couldn't disclose the reason, and above all i didn't had any overdraft limit.... i guess i would never recommend barclays to any one now...

pisu

BarclaysManager wrote: »

Q1. {The account was left with no credits to it, and allowed to go overdrawn. Whether it's from our account fees or not, it makes no difference - and the poster would have had to agree to said fees, anyway.}

In my case i always had amount above a 1000 quid and no overdraft limit and still they closed it what is this supposed to mean

Q2. Unless I'm very much mistaken, it will show on your credit score as being in arrears and then closed by bank. Which doesn't look good.

why this thing will shown on my credit report as I pay my Rent, Council Tax, Utility bill and everything by either DD or SO and that also on time and still being shown as a arrears and closed by bank this is totally unfair..

A_fiend_for_life

If you're paying a monthly fee to manage an overdraft, irrespective of whether you have funds going into your account, I think the descent thing to do is to inform you in writing first the potential consequences.

I would write a letter of complaint and progress it to FOS. That is diabolical imho regardless of how legal it may be or what it says in the small print. The 'decline to comment' bit just adds insult to injury imho.

asandwhen

BarclaysManager wrote: »

Q2. Unless I'm very much mistaken, it will show on your credit score as being in arrears and then closed by bank. Which doesn't look good.

I think as a "Bank manager" you should know alot more about credit reports than you do.

It will show as an agreed overdraft which it is (Not arrears) When closed it will show account closed (Not "we closed the account on you")

There is no facility to show who closed the account so I wouldn't worry too much. Change your bank and learn from your mistakes.

ShelfStacker_3

asandwhen wrote: »

I think as a "Bank manager" you should know alot more about credit reports than you do.

It will show as an agreed overdraft which it is (Not arrears) When closed it will show account closed (Not "we closed the account on you")

There is no facility to show who closed the account so I wouldn't worry too much. Change your bank and learn from your mistakes.

Unless it is marked as a Default (i.e. terms of agreement broken, agreement annulled and account closed as a result), which is what it sounds like. That definitely happens, definitely does show who closed the account and definitely doesn't look good.

ShelfStacker_3

A_fiend_for_life wrote: »

If you're paying a monthly fee to manage an overdraft, irrespective of whether you have funds going into your account, I think the descent thing to do is to inform you in writing first the potential consequences.

I'm sorry? He signed up to a fee-paying account, he knew it was a fee-paying account, he was given a terms and conditions document saying he had to pay money in each month if he was overdrawn, he left it without a credit... how is this in any way the fault of Barclays not mollycoddling him?

System

ShelfStacker wrote: »

I'm sorry? He signed up to a fee-paying account, he knew it was a fee-paying account, he was given a terms and conditions document saying he had to pay money in each month if he was overdrawn, he left it without a credit... how is this in any way the fault of Barclays not mollycoddling him?

I think its as simple as the interest free overdraft is part of the fee paying account, and since they were going to remove it, they would have had to change it to an ordinary account. With the account being basically unused, they just decided to close it instead.

Still having my morning coffee, so may have missed something...

ShelfStacker_3

No, it's not that. The interest free bit doesn't even come into it; he just left the account unused, allowed the fees to come out and didn't pay anything back. Regardless of what sort of account you have, leaving an account overdrawn without a credit for months is generally a no-no.