sudden overdraft removal - pls advise!

laurajane81

Hi

Towards the end of last year I realised that I was no longer able to make all the repayments I had on various loans and credit cards. I contacted a debt management company, who when through my income and outgoings and put a debit management plan in place.

I had had my current account with Barclays for the past 13 or so years, but as I owed them money both in the form of an overdraft and Barclaycard, I was advised to switch my current account to a different provider. My overdraft limit with Barclays was £2200, which it had been for a number of years and I owed £1820 on this.

All the agreements where in place with all over creditors expect for my overdraft. Barclays never replied to the original paperwork and offer of repayment. My debt management company therefore resent the paperwork and offer of repayment to them on the 2nd September. They then declined the repayment proposal.

On the 9th September I received a letter from Barclays (dated the 7th September) stated that I was over my £10 agreed overdraft limit and that they were therefore going to charge me £22 every 5 business days until this was repaid. They never contacted

I spoke to them on the phone on the 9th September and they told me that they had the right to reduce my overdraft at any stage and a letter had gone out that day to that effect.

They hadn’t contacted me at all, all year and the only money going into the account was that that the debt management company had been paying them. This was all fine until they received the paperwork about the debt management plan.

I don’t know what to do. Obviously as I am on a debt management plan I do not have this kind of money laying around. Neither can I borrow it from other sources. I am shocked by Barclays decision especially as they are aware of my circumstances.

Please can you advise me on what I can do? Can a bank just change your overdraft overnight without notice and start changing an additional £22 a week?


Many thanks

Hannah_10

laurajane81 wrote: »

Hi

Towards the end of last year I realised that I was no longer able to make all the repayments I had on various loans and credit cards. I contacted a debt management company, who when through my income and outgoings and put a debit management plan in place.

I had had my current account with Barclays for the past 13 or so years, but as I owed them money both in the form of an overdraft and Barclaycard, I was advised to switch my current account to a different provider. My overdraft limit with Barclays was £2200, which it had been for a number of years and I owed £1820 on this.

All the agreements where in place with all over creditors expect for my overdraft. Barclays never replied to the original paperwork and offer of repayment. My debt management company therefore resent the paperwork and offer of repayment to them on the 2nd September. They then declined the repayment proposal.

On the 9th September I received a letter from Barclays (dated the 7th September) stated that I was over my £10 agreed overdraft limit and that they were therefore going to charge me £22 every 5 business days until this was repaid. They never contacted

I spoke to them on the phone on the 9th September and they told me that they had the right to reduce my overdraft at any stage and a letter had gone out that day to that effect.

They hadn’t contacted me at all, all year and the only money going into the account was that that the debt management company had been paying them. This was all fine until they received the paperwork about the debt management plan.

I don’t know what to do. Obviously as I am on a debt management plan I do not have this kind of money laying around. Neither can I borrow it from other sources. I am shocked by Barclays decision especially as they are aware of my circumstances.

Please can you advise me on what I can do? Can a bank just change your overdraft overnight without notice and start changing an additional £22 a week?


Many thanks

Sorry but I couldn't read that, I have put it to arial font size 4 and now I'll read it and reply.

Hannah_10

Right first off when you say a debt management company, who?

Unless you're gonna say the CCCS or Payplan then you're being ripped off, both of these are fee-free, everyone else charges. Read Martin Lewis's advice here... http://www.moneysavingexpert.com/loans/debt-help-plan#help

Annoyingly the bank are within thier rights to close the overdraft facility any time they like and/or to charge interest and fees on the outstanding amount. Your debt management company should have told you this? If they are a profit-making company they probably accidentally-on-purpose failled to mention it (again), DMC's are are known for misrepresenting.

Best thing you can do right now is call the CCCS. http://www.cccs.co.uk/

laurajane81

Hi
it is with Payplan, thanks

NorthernLas

I would phone PayPlan and ask their advice regarding Barclays adding interest and charges. I don't know if they write letters for you or whether it would be better coming from you.

Barclays are within their rights to do this, but you can keep asking them to freeze interest and charges because of your circumstances.

DarkConvict

Legally, there is nothing you can do. Overdrafts can be removed given 30 days notice and this is in your terms and conditions. Unlike credit cards who can only reduce your limit to your current balance an overdraft can be set to £0.

You can only ask in goodwill that charges/interest is stopped/suspended whilst you complete your DMP, and if they accept you are in the lucky category. Some creditors are just not nice to deal with, and sometimes i think it just depends on who's desk your paperwork lands on.

NeverEnough

Unfortunately, its true, they can do this at their own behest......I have Barclays accounts and they put a "reserve" on my account which I never asked for, never needed and never used, and with absolutely no debt difficulties at all with them or anyone else, I got a letter from them one day telling me that they had received "adverse" information about me and therefore were withdrawing this "reserve" amount as I would clearly put their £500 at risk ....... I wrote to them basically stating that this was completely untruthful or that they had mistaken information and got a rather stupid letter back telling me that they "understood my disappointment" at "not qualifying" for their reserve facility due to the "adverse information" but that this was the way it is. I checked my credit reports with all three main providers (Experian, Equifax and Callcredit) and there was nothing adverse at all on any of them - just a very good record of up to date payments on everything, no defaults, no overdue payments, and no excessive searches etc. No new loans or credit lines that I hadn't had for the past few years. I'm really busy and have been working away from home so didn't bother to pursue the issue, but it still annoys me........they get away with absolutely everything, all the time, and you can do very little about it.......

Percy1983

I while ago my bank tried to reduce my over draft to less than the balance, I went in and spoke to somebody in the branch and agreed to get it raised for another 6 months with no problems. I have since paid it up and cancelled it completely.

As mentioned the bank can do this to you, its more goodwill than anything if they help you.

Of course don't kick off with the bank, be calm and offer good reasoning.

barbiedoll

We too, had a large overdraft with Barclays who did eventually accept our repayment offer. They did make a bit of a fuss but eventually they passed it to Credit Solutions Ltd (a DCA) who agreed to stop the interest and charges. They did send a few "threatograms" including one offering a doorstep visit, which we quickly declined, but even when you are in a DMP, it doesn't hurt to be a bit proactive yourself. There are good template letters on the National Debtline site, including this one ...

http://www.nationaldebtline.co.uk/england_wales/temp/8343_77531.pdf

which asks them to stop interest and charges whilst you are paying off your debt. It may take a while but don't rely on Payplan doing all the work, they have many, many debtors to look after. If you send letters yourself too, (recorded delivery obviously!) and if Barclays do ever decide to get shirty and take you to court for a CCJ , you can show the judge that you have made an effort yourself to deal with your debts and that Barclays have not been helping you.
It may also be worth contacting their complaints department and stating that you received no correspondance regarding the withdrawal of your overdraft facility. You could also state that their unwillingness to accept your DMP repayments is causing you considerable distress at a very difficult time, etc etc. They have to act upon complaints, so you may get a result a bit quicker than going through the call centre robots. Their complaints procedure and address for letters is here..

http://www.barclays.co.uk/ContactUs/Howtocomplain/P1242558122337
Good luck and don't get too stressed, there's always one creditor who won't play ball, as we always say, they can't have what you haven't got! :mad:

MRS_A_3

When filling out the bumf for the CCCS I remember seeing that Barclays will allow you to keep your account as long as you go through them.

Therefore I imagine that they are more willing to negotiate with CCCS?