Bovver with Barclays

Bassplayer

Hi all

Bassplayer here! Ain't been on for a while after going BR in May and you guys really helped me up, through and beyond that awful bloody process. Hasn't been too bad since, except for a real stinker with Barclays....who I had a business account with, the overdraft on which went into my BR.

Anyway, wondered if anyone could help with the following:

One of my clients inadvertently paid me by BACs into the Barclays account referred to above. The amount was £540, no small sum to a bankrupt, and technically this money comes under the control of the OR. (I now have a Coop account into which the money should have been paid).

Upon realising their mistake, my client’s finance manager contacted Barclays (as did my client’s bank) and was told that my account was closed and that the payment would, therefore, automatically be returned.

Anyway - no surprise - the payment was not returned, I also called Barclays and have been told no less than three times that no such payment was received and anyway my former business account was closed. Therefore any payment would have been returned to my client’s bank.

Then it got interesting! On 3rd September I received a letter from one of Barclays debt collection agencies (RMA - Risk Management Alternatives) and I rang them. A member of staff there confirmed that £540 had indeed been paid into the above Barclays account on 24th August 2009.

As a result of that conversation, I again spoke to Barclays who still could not trace the payment and said that, in fact, my account had been closed on
3rd August.

My client’s bank has now been told by a Barclays employee that the £540 had been received and would not be repaid as ‘I owed them money!’

Having discussed this with the Official Receiver, they say the money should be repaid because:

1. My bank account should have been closed as soon as Barclays received notice of my Bankruptcy on 19th May, and the payment of £540 returned to my client’s bank automatically anyway.

2. Barclays have confirmed that the account was actually closed on 3rd August. Why then was a BACs payment made on 5th August credited to that account as late as 24th August?

3. Most importantly, Barclays seems to have breached insolvency legislation in a number of ways:

a) Barclays retention of this payment puts them in an advantageous position over my other creditors.

b) Barclays retention of this payment could also be construed as me favouring one creditor over another, which clearly I have not intentionally done.

c) Barclays has no ‘Right of Set Off’ in this way.

Everyone from the OR to the CAB agree that the money should be returned to me but, having written to Barclays twice, they don't seem any closer to returning the £540! I can make an official complaint to the Financial Ombudsman, but that could take months more time.

So, any suggestions anyone? I'd really appreciate any help or advice you can give.

Thanks and best wishes y'all...keep all the great work up!

BP

debtinfo

bump.........

confused76

hiya
sorry no words of wisdom just wanted to say and i hope you get it sorted! sounds like Barclays are being extremely badly behaved - but they will get their comeuppance, they won't get away with it!
all the best x

alastairq

Isn't it the OR's job to pursue Barclays over this payment?

Send your evidence of the payment into the dead account to the OR.

If the OR cannot recover it, then it may well be up to the payee to recover the payment, via their own bank, from Barclays.

Yet another reason for my..erm....'disappointment' with Barclays bank.

tigerfeet2006

There is also the ombudsmen, trading standards and OFT and I am sure that fermi and Bat will be able to give some proper advice.