Barclays mis-selling of Current Account

lynxptc

Went into Barclays last month to open one of their Monthly Savings accounts at 7.75%. When I was in there the advisor done a credit check on me (without my consent) and told me that I was approved for one of their current accounts. I told her I wasn't interested.

She kept on about the account though and the one she was describing WAS actually better than my old one. I told her my account had a £2,500 overdraft limit on and a £250 cheque guarantee card and said that I would switch my account over ONLY if she could guarantee to match these facilities. She gave me her word that she could and she opened the account.

A week later, I received my debit card through, with only a £100 guarantee on. I don't use cheques a lot so it didn't really matter, but I was still annoyed that she didn't match my £250 one when she said she would. I also had a letter saying the £2,500 overdraft had gone on which was good.

All was well for a few weeks then I logged onto online banking and found the overdraft had been removed. I went into Barclays and asked why this had happened and couldn't be given a reason. An application was done to put it back on but was declined. I explained what had happened when I opened the account in that I was guaranteed to get the same facilities but the branch manager didn't seem interested and said there was nothing they could do.

I'm now left with an account that I don't really need and can't use. I'm annoyed that the original advisor done a credit check without asking, and more annoyed that they didn't keep to their word of matching my facilities.

I'm now going to close the account as I don't need it, but didn't know what to do after that. Definitely want to make some sort of complaint, but to what end? Do you think they would be willing to remove the credit search and account record from my credit files because of what happened?

moneysavingallday

that is disgusting! I am not sure who you need to write to get them to remove the credit check though

taless

Yes, you can make them remove the credit check, as one of the solutions to the matter. I'd suggest you write to their Customer Relations, insisting that:

1) They have no right to do a credit search beforehand without your approval
2) You opened the account based on the promise that they will match it.

All the best!

(Addresses and details can be found at http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articlegroup&value=3657&site=pfs)

new2civvystreet

lynxptc wrote: »

All was well for a few weeks then I logged onto online banking and found the overdraft had been removed. I went into Barclays and asked why this had happened and couldn't be given a reason. An application was done to put it back on but was declined.

Won't that rejected credit application for the overdraft to be reinstated now be on your credit file?

That can't be good, I would also request Barclays sort that out for you too.

dunstonh

I'm annoyed that the original advisor done a credit check without asking

So, you never signed an application for a current account. Yet they gave you a cheque book, debit card and overdraft facility without any signature?

and more annoyed that they didn't keep to their word of matching my facilities.

They cannot offer you facilities until they credit score and see the outcome.

Do you think they would be willing to remove the credit search and account record from my credit files because of what happened?

I dont see why they should. You said what terms you wanted. They credit scored it and decided they couldnt offer those terms. Its not doing you any harm unless you intend to go on a mass credit spree over the next 6 months.

I went into Barclays and asked why this had happened and couldn't be given a reason.

Bank staff dont get to see the detail on the credit score. Just the outcome. So, they cant give you a reason why.

Extant

Branches can't just do a credit check to see what you're eligible for. If you're new to bank, they would need to log an application for the current account to see if you were accepted or not. With that in mind, you agreed to the account if your existing features could be matched - so that's the point where you would have been scored.

If you're unhappy with the handling of the situation, you can call 0800 282 390. If you'd prefer to write, you can write to Retail Bank Customer Relations, Barclays Bank, 1 Church Place, London, E14 5HP.

You can also complain in branch. They will try to solve your complaint there and then. If they can't they will escalate the complaint, provide a reference, and give you a copy of whatever the current complaints leaflet is.

Scousebird_2

I don't understand why they have run an application for a current account, if all you wanted was a savings account.

The fact thet she talked you into a current account (sales in banking is supposed to be based on established needs) then this in itself is mis-selling, no questions about it-unless someone can provide you with a section of Barclays terms and conditions stating you must hold a personal current account to qualify for the savings account you wanted.

Be sure that the account offered to you is not a ''fee paying'' account also. What is the name of the account she issued the debit card on?

It's is very poor that they did this and yes, I have heard of a facility match service if you can prove you have facilities at another bank, but it is unacceptable for the bank not to deliver this promise if this was a condition of your agreement to sign up for the account.

At the very least, this is poor customer service and needs investigating at a higher level and the member of staff suitiably re-trained!

lynxptc

Thanks for the advice everyone.

It's obvious that the advisor run the credit check without my consent to see if I was eligible for the current account, and then when it said yes she started all the sales talk to make me go ahead with opening it.

I signed the application for the current account (which probably authorised the credit check as well) but only AFTER she done the check and after she said she could match my facilities - which wasn't done.

I'll write everything down in a letter to Barclays and send it to them.