Barclays loan problem wish to settle

blacknight1971

Hi,i have a barclay loan which was £249pm,then i lost my job,so agreed with them to pay £10pm until i was in a better situation.Got another job,but pay is low,so my house is now sold and i will have the money to pay off the debt in full,but is there anything i can do as they have been charging me £5.51 per day interest!! i have been down to the bankand i have just been offered the balance as a settlement figure.I put in an offical complaint about the charges but didnt get anywhere.Thanks for any advice.

paddyrg

Please give full figures - how much is owed, APR on the loan, etc.

blacknight1971

Hi,i cant find the original paperwork at the mo,but when i got into difficulties and arrears, they accepted £10pm,but didnt mention the £5.51 per day interest charge.All my other creditors froze the interest.when i went in to the branch to ask about settling it they said the figure was xxxx,and i was stunned,this is how it all came to light.The balance as of sat23rd april was £12,289.78.

[Deleted User]

if you knew the others had frozen the interest then i suspect you knew that barclays hadnt,from past experience of barclays they will if you ask.
however also from experience if you speak to someone above branch level and offer 50% as a full and final settlement they may accept that,providing you havent made full monthly payments for sometime

blacknight1971

Thx woodbine for the reply,but when i speak to someone at headoffice(Loans dept),i get the same C*W on the phone and she wont budge...Thats the balance..so thats the settlement figure.So im stuck really.

paddyrg

Hmmm - gotta be honest, £5.51 sounds about right for interest on a debt of that size, so that's hardly unfair charges. Did they *say* they were freezing the interest? There is no obligation on them to do so of course, as you seem to be discovering.

Why not just pay the debt in full if you have the money now?

blacknight1971

Thx for the advice.I can pay off the full amount,buts its the principal of the matter...why say to me you can pay £10pm until im in a better position to pay,when their charging me £165pm interest!!
I might as well not have bothered paying the £10 to them,and put the tenner to another creditor!!

paddyrg

I hear your pain, but on the plus side, they could have enforced the full £249/month against you, then when you couldn't pay, sent it into a debt collection programme which would have been much messier for you. Believe it or not, they did you a massive favour allowing you some breathing space. And as it costs them money to lend you money (they have to pay for it somewhere, plus all the staff, overheads, extra admin, etc), you are covering their costs (the interest) without them having levied new/extra charges on you, which they could have done!

All told, they were pretty decent, could have been a bit kinder, but not much!

blacknight1971

Thx for the comment,but i'll agree to disagree on this one,thx anyway.Hopefully in 2 weeks i'll be totally debt free for the 1st time in my life:D

paddyrg

Nice feeling!! Enjoy high interest rates being a good thing rather than a bad thing for you now!