Barclaycard taken old debt direct from my account!!

chickmeistergeneral

Hi everyone

Im looking for some advice for my mum.

She had a barclaycard approx 4-5 years ago, it didnt get paid, and my mother was in consultation with a debt collection agency about paying it off. Arrangements where made, and the debt collection agency never got back to her.

The agency told her barclaycard had passed the debt over to them. Last contact with them was at least 2 years ago.

Today she has gone the bank and £750 has been taken from her account. After speaking to barclays on the phone, they have told her barclaycard has taken it and it is her bill from her barclaycard from 4-5 years ago.

My mum and me are sure they cannot do this, especially without prior warning. Also from what she can remember, the bill was not anything near this amount.

Can they do this, and has anyone any advice on what she should do next (they have told her she cant do or speak to anyone until tuesday)

Thanks!

MarkyMarkD

It is not unusual for banking agreements to allow the bank to take money from other accounts you hold with them, if you owe them money on another account.

She owes them the money, and she had it in her account.

The amount might not have been £750 5 years ago, but it might easily have increased to £750 due to charges for non-payment and accrued interest.

I'm not sure why you think she shouldn't pay it.

kevin.philips

She owes them the money, and she had it in her account.

The amount might not have been £750 5 years ago, but it might easily have increased to £750 due to charges for non-payment and accrued interest.

I'm not sure why you think she shouldn't pay it.

This was real constructive advice....???????? Do you have £750 lying around at the end of the month doing nothing..? If so pass it on to the OP rather than starting an agressive and useless response.

I suggest your mother approaches Barclays and asks what steps were taken to recover their losses, Barclays like every other institution in this land are regulated by practices relating to the recovery of debt, don't get me wrong I'm not saying that they acted illegally but their actions are far from ethical and there is a certain amount of loss limitation that they must apply before such drastic recovery steps.

They themselves would have know for the length of the debt that your mother held other accounts with them, it is a long haul but the motion in progress is that most penalty charges are illegal - it's an option for your mother, take a search and see what you come up with.

In the meantime speak to the bank and dispute the amount, they may reverse the charges and reach with you both an amicable solution providing you can prove your side of the events.

Regards

Bossyboots

I didn't think Marky's response was aggressive or useless. I poses a sensible question, the answer to which is quite pertinent.

From the OP we don't know why umbrage has been taken at the money being transferred. It has not in fact been suggested that it is has left the OP's mum short. In fact, it implies that it just never got paid, not that the money was not there to pay it. It helps to know all the facts so any arguments there might be against the bank's actions can be given. There are separate issues here. Why the account was not paid and whether the increased sum is legal (there will be interest payable but I agree there are likely to be penalty charges).

I was also not aware that banks could transfer from a current/savings account to a credit card in this way. I understood the T&Cs to mean that they could, for example, clear an unauthorised overdraft on a current account from a savings account. From the title, I understood this to be an old direct debit that had been used, rather than simply the bank transferring money from the account. If this is the case, then the direct debit appears to be unauthorised and the OP's mum should invoke the direct debit guarantee and tell the bank to put the money back into her account immediately.

daveboy

Personally can't see the problem here...Barclaycard got back what they were owed.

If they don't, the rest pay for it.

Having read kevin.philips responses elsewhere...I'm still not afraid to say what I think. Don't waste your time trying to brainwash people out of posting their views.

The_Boss

Another here that didnt think that comment before was aggressive or unnecessary from markymark. Someone owes money and hasnt dealt with it. So they have.

queenbeeno1

Take it from me Barclays cannot do this. I had a similar run in with them 9 years ago when they took money from my personal account, on cheques that were drawn on a "joint" account. They stated that they had to get the money from somewhere as the joint account was closed and I aruged with them that the cheques were drawn on a different account and that they had no right to take it from my account, even though I had signed the cheques. they backed down and I think even paid me some compensation but don't quote me on that (it was a long time ago and all the problems were the result of a divorce)
Tell your Mum to speak to the CAB or even a solicitor , most give 1st half hour for free.
I don't think some of the others have read your orginal post correctly, you state that this debt is 5 years old and from recollection was a lot less than £750, so sounds as though interest has been added and quite frankly a direct debit cannot be taken from your account without your permission. I am all for fighting these people, I can't belive some people think that banks should be allowed to get away with this and are under the impression that the rest of us pay for this! I don't see how Look at Barcalys profits they certainly aren't making any losses!!

YorkshireBoy

queenbeeno1 wrote:

Take it from me Barclays cannot do this.

Condition 7.5 of Barclays' "Terms and conditions for personal customers" states...

We may use any amounts you have on any account with us in any currency to reduce or repay any amounts you may owe us on any account (including on card accounts you hold with us, and any other amounts you may owe us), either in your own name or jointly with anyone else. We will tell you if we do this.

They don't say that they will tell you beforehand, just that they will "tell you".

BTW, I don't think they'll have used an old DD to collect the amount, as many (all?) mandates lapse if not used for 13 months.

MarkyMarkD

Thanks to the sensible people who have dismissed the suggestion that I was being aggressive.

This money has been taken under Barclays' legitimate terms and conditions; it is money which was owed.

There's no moral reason why a debt should be forgotten about just because you fail to pay it for a few years. And there's no moral reason why interest shouldn't be added in those circumstances.

Bad debt is paid for by either other customers or the bank's shareholders (or a mixture of both).

If you owe some money, pay it. End of problem.

Direct debits don't come into this at all - it's a contractual right for Barclays to be able to take this money.

fuzzyfuzzy

Mate under the Direct debit agreement you have the right to claim upto 6months of direct debit charges immediatelyjust give your current account a call it is your right to claim that money back, you can then come to an affordable and acceptable repayment option with Barclays.

I reclaimed a d/d recently through HSBC, it was back in my account within 4 hours!!! i was amazed.

fuzzyfuzzy

MarkyMarkD wrote:

Direct debits don't come into this at all - it's a contractual right for Barclays to be able to take this money.

You are dead wrong, It is an agreement not a contract.

Barclays have no legal right to keep that money.

Part of the agreement states that 'if there iis any change to the date, amount or frequency of the direct debit we will give you 7-10 days notice in advance of the account being debited'

As for moral reasons as a responsable company they should understand that not many people can afford to pay £750 in one lump sum and arranged affordable repayments and explained their charges.