Barclaycard refund - not allocated against arrears

ccmug

I've had substantial refunds of charges and interest from Barclaycard and Goldfish, both accounts are in arrears. They say that the refund cannot be allocated against the arrears which does not seem right, if they hadn't taken the charges in the first place then I wouldn't be in arrears.

They are now demanding , through their DCA, within 7 days, a payment I can't make.

I'm tempted to tell them to take me to court and defend on the basis that if the charges hadn't been made then the arrears would not exist and suggest that I will demand that they justify the level of their charges

Is this a reasonable approach?

Orford

Have you actually been paid the refunds, if so why can't you use them to clear the arrears. If you haven't yet been paid and they are refusing to refund to the a/c's, how are they proposing to pay you?

ccmug

Orford wrote: »

Have you actually been paid the refunds, if so why can't you use them to clear the arrears. If you haven't yet been paid and they are refusing to refund to the a/c's, how are they proposing to pay you?

They have refunded to the accounts thereby reducing the outstanding balances but they say they cannot allocate it against the arrears so they are still chasing me for them.

Orford

Sorry if I'm being thick, but what is the difference between outstanding balance and arrears

ccmug

Orford wrote: »

Sorry if I'm being thick, but what is the difference between outstanding balance and arrears

The arrears are the monthly payments that I should have paid but that I haven't

Orford

Surely these are included in the outstanding balance?

ccmug

Orford wrote: »

Surely these are included in the outstanding balance?

Yes they are but as the account is in arrears they can default it and then take legal action or sell the debt on to a DCA.
So even though say a grand has been refunded and I owe 450 in outstanding payments, I still owe 450 which they want from me

Orford

No, I still don't get it. Not sure whetther it's me being stupid or you not explaining it very well

As I see it there are 2 scenarios:
a) Your outstanding balance was £1450, they've credited your charges (£1000) to the a/c, so you now only owe £450
b) Your outstanding balance was £450, they've credited your charges (£1000) to the a/c, so your in credit to £550, but the DCA is still chasing the original balance of £450

or c)?

pmcg01

I think what is being said is an amount is owed, this amount includes the arrears.

The charges have been paid to the account to reduce the balance, but the company is still claiming that the arrears are due as they were stil contractual payments not made.

What the poster is saying is that had theses fess not been added, the balance would be less, so the minimum payment would have been less, and therfore the arrears.

My thoughts are, you are lucky to get the charges back, especially since it is not yet cut and dry. I see your point, but I owuld say taking further is risky, it owuld effectively be knocking back their offer and if it went to court and they ruled in the banks' favour over the charges, they might take back the offer and you would be back to square one.

Personally, if you can pay the arrears, I would, if not, then send them a list of your income and expenditure and explain this is what you can afford and that you have no other liquid assets.

natweststaffmember

pmcg01 wrote: »

I think what is being said is an amount is owed, this amount includes the arrears.

The charges have been paid to the account to reduce the balance, but the company is still claiming that the arrears are due as they were stil contractual payments not made.

What the poster is saying is that had theses fess not been added, the balance would be less, so the minimum payment would have been less, and therfore the arrears.

My thoughts are, you are lucky to get the charges back, especially since it is not yet cut and dry.(please see OFT842 point 1,14 for clarification) I see your point, but I owuld say taking further is risky, it owuld effectively be knocking back their offer and if it went to court and they ruled in the banks' favour over the charges, they might take back the offer and you would be back to square one.

Personally, if you can pay the arrears, I would, if not, then send them a list of your income and expenditure and explain this is what you can afford and that you have no other liquid assets.

To clarify for yourself. Credit Card charges are not part of the OFT test case so it means a claimant can challenge them in the County Court and so far, they are not defending cases but settling them before going to court.
In the above referred report it states that only a court can decide a fair charge.
This isn't bank charges on a personal current account.

ccmug

Bump - looking for an answer to the original question