Incorrect Barclays Charges & Repercussions

izools

Hi all!

I opened two Cash Card accounts with Barclays, and a Golden ISA when I was discharged from my Bankruptcy in March.

As I'd spent my year of bankruptcy going "Cold Turkey" with no form of credit or plastic whatsoever I learned an incredible amount about budgeting, discipline, and thriftiness, in a comparatively short space of time. I feel I have done well.

Now, I went into Barclays yesterday and spoke to the branch Assistant Manager just to make sure I was doing everything right, making sure there wasn't anything I could do to run the accounts better, she commended me for running the accounts "Flawlessly", keeping a balance in them at all times, lots of income & turnover etc, she recommend that I apply for an upgrade to a full account but I advised her I won't even bother trying until I've held the accounts and been discharged from my bankruptcy for atleast a year.

She reassured me that my good running of the accounts will be an asset to me when I decide to try for an upgrade.

Now before you get bored of me praising myself I have a genuine question -

I've had a problem today with incorrect bank charges. I called them up and the charges were reversed and I was given a good will gesture credit to my account for the trouble. Which is very nice indeed!

But what really concerns me is now that I have had a charge on the account, my flawless record of keeping the accounts in good order will be tarnished and I'll be much less likely to qualify for an upgrade when the time comes next year. Am I thinking right, or being paranoid?

Reason being is that as a separate issue, Aqua charged me a £12 overlimit fee because interest took me £1.20 over the limit one time, I called them up the same day the interest was applied to make a sizeable debit card payment to the account, and Aqua refunded the £12 reassuring me that because the fee had been refunded, the charge won't affect my eligibility for a credit limit increase.

Six months after the last increase I called and asked if I can have another to help build my credit score, and they said no, because of the charge, and it didn't matter if it was refunded.

Will Barclays be the same?

Thanks!!

izools

*Bump* - Anyone able to share some insight?

thatsean

If you're asking will Barclays have recorded the overlimit on your external credit file - v unlikely. Regarding internal decisions, my understanding is that the cash account earns you no extra 'bonus' as it were, as it doesn't drive their system to offer upgrades (in the way that HSBCs behaviour score does for example). So whilst they will see the charge (and the reversal), they would still check you externally for a full service account.

izools

So what you are essentially saying, is no matter how well or how poorly I run my cash card accounts with Barclays, it will not have an impact on the decision they make when I apply for a full account? I.e. I would be treated as a new customer?

If this is the case, given my circumstances, would I be correct in saying I would be better going with a bank that does provide an account behaviour score to basic accounts?

Finally, which banks do give an account behaviour score on their basic accounts?

I know that they will still do an external credit check if I try to upgrade no matter who I am with, but I'd rather be with a bank that takes my previous account running into account that one that doesn't

( P.s. I've never actually been overdrawn, it was a bank error that generated the charges )

thatsean

.................

izools wrote: »

So what you are essentially saying, is no matter how well or how poorly I run my cash card accounts with Barclays, it will not have an impact on the decision they make when I apply for a full account? I.e. I would be treated as a new customer?

That's my understanding, I hold one too, and when I applied they advised that I should sort out my money problems, as the system wouldn't track me as eligible for offers. Of course, branch staff can see it, but I don't know what sway they have if your full service account was declined. BM might be able to fill in the gaps here.

If this is the case, given my circumstances, would I be correct in saying I would be better going with a bank that does provide an account behaviour score to basic accounts?

Possibly, although you need to be with a bank that has the correct service offering also, Barclays connect card is invisible to all but those in the know as a Cash account card - other banks have products that scream prior financial challenges.

Finally, which banks do give an account behaviour score on their basic accounts?

I think that's the problem, I don't know which do, I know that HSBCs behaviour score applies to basic products, but their cash account doesn't come with a debit card.
I know that they will still do an external credit check if I try to upgrade no matter who I am with, but I'd rather be with a bank that takes my previous account running into account that one that doesn't

( P.s. I've never actually been overdrawn, it was a bank error that generated the charges )

Hope that helps, and am sure someone who knows a bit more will be along soon.

Extant

With a history of bankruptcy, you will likely have to appeal the decision at Barclays regardless.

Although having a cash card won't generate you any "pre-approved" limits, your account conduct would be looked at if you applied for anything more.

izools

thatsean - thank you very much. I will apply for an upgrade once I've had the accounts open a year, appeal if it's a decline, and if I don't get anywhere I'll go to HSBC. As you quite rightly say I do like how my Barclays connect cards are indistinguishable from a full account Connect card - the same can't be said for other banks.

My credit score is climbing rapidly and I will not apply for an upgrade until I've met all the following conditions:

1. All defaults are satisfied (Done already)
2. Bankruptcy is satisfied (Done already)
3. No outstanding arrears (Done already)
4. Have five active accounts on my credit report with all Green [0]s (Done Already)
5. Wait until all my accounts have been open at least a year (waiting until next yr)
6. Wait until the most recent missed payment / default / BR was two or more years ago (waiting until next yr)
7. Wait until I've had zero credit searches in the last six months (had two at the mo)
8. Electoral role registration is confirmed on Equifax and Experian (Waiting until Dec/Jan - been confirmed by Council)

I think once I've met all of the above conditions and have run the Barclays account flawlessly for the year mentioned, I've got a lot of positives to argue if I have to appeal!

extant - Yes I'm sure having the cash accounts won't generate any pre-approved offers but what worries me is that thatsean suggests the account conduct won't even be looked at - which rings true as when I was in branch yesterday she told me I run the account flawlessly - but said there's no behaviour score applied like with full accounts

Thanks for your suggestions and advice everyone! Any more information would be greatly appreciated

Extant

izools wrote: »

extant - Yes I'm sure having the cash accounts won't generate any pre-approved offers but what worries me is that thatsean suggests the account conduct won't even be looked at - which rings true as when I was in branch yesterday she told me I run the account flawlessly - but said there's no behaviour score applied like with full accounts

Account conduct is looked at. Barclays deals with a lot of people in your position - an appealed decision, even fresh from bankruptcy, will get account trends looked at.

Branches can't see a "behavior score" and the bank doesn't really have one - you get pre-generated limits, but there's no behavior score as such.