Barclays Default for £85 - Help!

tomodlin

OK, this is my story... Please help!

At the start of the year I went travelling. Before I left I set up a basic secondary account with Barclays that I would use solely to pay direct debits whilst abroad. I just left some money in there to cover everything I knew needed paying. The account had no overdraught.

I told barclays I was going travelling so all correspondance on the account had to be over the phone. I specifically said do not post anything. This applied for both this account, and my current account - also with barclays.

As it turns out, I ended up settling all of my debts before I left and left the account dormant with no money in it. However, I forgot to cancel 2 direct debits. These bounced and £30 in charges was applied to the account.

When I returned from travelling I moved house, within a week. I told barclays about the change of address as I still had a functioning current account with them.

About 2 months ago I checked my credit file, just as a matter of routine, and found that Barclays had put a default notice on my account for £85. I rang to enquire about it and was told it was from the £30 of bounced direct debits. They said the account had been closed and I had been notified about the default notice. I asked where they had sent the notice and they said my old address. Despite the fact that I had told them I wasn't there, and gave them my new UK address as soon as I returned to the UK.

I offered (in writing) to pay the £85 if they removed the default completely, as my transactions on my current account prove I was not in the country and I had told them my new address. I heard nothing back from Barclays and yesterday I received a letter from Wescot Debt Collection demanding the £85.

I called Barclays and they said the defualt wasn't an error so it was not their policy to remove it and therefore handed the account to Wescott. No one in the bank had bothered to inform me of this. They wouldn't discuss the matter further and told me I had to speak to Wescott.

So I called Wescott and they say they have no control over the default and it was Barclays I needed to speak to.

They said if I paid them the £85 the default would be marked as satisfied. Not good enough for me, as I know this is just as bad.

As I pointed out to Barcalys, had someone mentioned to me at any point when I called them from abroad (they cut my card off at least twice a week - requiring expensive phone calls to them) that I needed to pay £30 or have a default, I would have immediately. But they didn't.

So what can I do?

At the moment I am refusing to pay any money as the default is already on my credit file - so why bother paying it? I won't pay it until I am assured that the default will be removed - which no one is willing to do.

Sorry for the long post. Any help/advice will be greatly appreciated.

Tom.

LeeSouthEast

Tom, while the situation sucks, it boils down to your error. You left no money in the account, no overdraft applied, and left 2 direct debits to run on it. While Barclays have played less than admirably in this matter, it does come down to 'customer error'.

tomodlin

I accept that was my error. My issue is the fact that I did not recieve the default notice, or indeed any notification of charges to the account as they sent it to and address I was no longer living at! Of which I told them!

To clarify - I had no idea that the account was in debt. I did not even know the two driect debits were still being claimed. I just forgot about it until I saw the default on my credit file.

opinions4u

At the moment I am refusing to pay any money as the default is already on my credit file - so why bother paying it? I won't pay it until I am assured that the default will be removed - which no one is willing to do.

Get the debt paid.

Then fight the battle via Barclays' useless complaints department and then take it to the FSO if you have no success.

There is no point making the damage worse by refusing to pay on principal.

I told barclays I was going travelling so all correspondance on the account had to be over the phone. I specifically said do not post anything. This applied for both this account, and my current account - also with barclays.

This does not allow the bank to discharge their legal and regulatory obligations. They cannot do business on this basis.

Ultimately the default is a statement of fact on your credit file. Much better as a "satisfied" fact.

tomodlin

It's not a principle. I just don't see the point in paying it now that the default is applied. It'll be there for 6 years regardless. They can't put another default on for the same debt, can they?

And I dealt with the complaints department before. When I complained about the default notice. Their response was to ignore the letter and pass the account to Wesott - without any contact to me whatsoever. Not even an acknowledgement of the complaint. I know they got it, because they admitted so on the phone yesterday.

And I accept they are obliged to send default in the post. But they knew I wasn't at the address. Could they not have called, or even mentioned it when I called them?

woody01

They said if I paid them the £85 the default would be marked as satisfied. Not good enough for me, as I know this is just as bad.

Why is this not good enough?
It's not Barclays fault you didn't have the funds to cover your bills whilst away is it?

tomodlin

Well that's another issue entirely. The bills were paid completely, but EDF, in their eternal wisdom, decided to attempt to take direct debits despite the fact that there was no money owing.

I feel a bit harshly done by here. The fact of the mater is Barclays did not inform me of the debt.

There must be a way of having such a trivial amount of money removed?

opinions4u

tomodlin wrote: »

I feel a bit harshly done by here. The fact of the mater is Barclays did not inform me of the debt.

They have to put such information in writing. You didn't provide them with a correspondence address. You stated in your first post "I specifically said do not post anything"

There must be a way of having such a trivial amount of money removed?

If it's so bloody trivial, then why not pay it?

This immediately improves your credit record and gives you the time to pursue your grievance, free of charge, via the Financial Services Ombudsman.

On the balance of probabilities, I think the FSO will rule against you, but I could be wrong.

You could also pursue it via the courts. But this will ultimately cost you a lot more than £85 and you could have a ruling for Barclays costs made against you.

tomodlin

I did provide them with a correspondance address! They just chose to ignore it. The default was issued AFTER I had given them my new address in the UK. They sent it to my old address. And at no point was I told about the money owing. How was I supposed to know that a company would claim money I had already paid them?

£85 is a trivial amount to have as a defualt. Paying it now is irrelevant. As the default is there.

Whay am I being attracked here for asking for advice?

You think the events stipulated are reasonable? You would be happy to have an £85 defualt under the same circumstances?

I think I'll just ask elsewhere. Thanks for your time.

onlypaddy

just a case of terrible account management to me, pay the debt and live with the default for 6 years. As you have already said, this is a trivial matter for you. Go and read some of the threads on the debt free wannabe board and you'll see people who are really in a bad situation!

maybe next time you'll take direct debits off your account when they're paid! you could possibly take it up with EDF, but I bet their systems would automatically try and take payments from all active direct debits when they're usually due as energy companies simply put your account into credit so it will be in the T&C's of your contract.

whether you received the default notice isn't the issue, you're just trying to make it look like Barclays fault. Yes they should have updated your address details (did you put it in writing? you only said you 'told' them....) but the original route of the issue is your bad account management.

opinions4u

tomodlin wrote: »

I did provide them with a correspondance address! They just chose to ignore it. The default was issued AFTER I had given them my new address in the UK. They sent it to my old address. And at no point was I told about the money owing.

There was a period of time where they will have issued statements to the last known address that they had for you.

This is the basis for taking a complaint to the Ombudsman if you have exhausted Barclays complaints procedure.

How was I supposed to know that a company would claim money I had already paid them?

Again, it's part of your case. But you should have cancelled your direct debits before flitting off.

£85 is a trivial amount to have as a defualt. Paying it now is irrelevant. As the default is there.

Bad attitude that will make it harder to get credit than paying the amount due and having that payment recorded on your credit file.

If your case is won you will, of course, get the money back.

Whay am I being attracked here for asking for advice?

I have not attacked you. I have outlined steps to take to give you a chance of having the matter resolved in the way you want.

Throwing a hissy fit won't achieve this.

You think the events stipulated are reasonable?

Not providing the bank a correspondence address. Not cancelling direct debits. Not keeping an eye on your finances. You left yourself open to the possibility of something going wrong.

You would be happy to have an £85 defualt under the same circumstances?

I wouldn't have found myself in the same position as you did. I think there is blame on both sides here. You digging your heals in will mean your credit file works against you for longer than it needs to.

That's an active choice on your part.