Barclaycard - Closed Account Refund

sgx.saint

Hi,

Barclaycard owe me just over £700 in unlawful charges, and have recently written to me to offer just over £300 including statutory interest.

I am considering the offer, but I note that on the letter that they have stated they will ask the third party debt owner to adjust their balance accordingly, should I accept the offer.

However, my account with Barclaycard is closed, and the debt balance sold to the third party debt collection agency.

So my question is, can they pass this refund directly to this third party?

They owe me the money, so I thought they would refund me directly, considering the account is closed?

I only ask as I was going to use the refund to distribute evenly between all my creditors as I am on a DMP.

If I took them to Court and won, then the any owed monies would be paid directly to me, so I'm tempted just to do that if they won't repay it to me.

Anyway, appreciate any thoughts or comments!

dunstonh

So my question is, can they pass this refund directly to this third party?

Yes. The pecking order of refunds is typically as follows
1 -any debt written off
2 - any arrears
3 - you

If I took them to Court and won, then the any owed monies would be paid directly to me, so I'm tempted just to do that if they won't repay it to me.

You seem confident about that but its unlikely as the FSA guidelines generally follow law.

sgx.saint

Hi,

Thank you for the reply.

Can you point me towards the relevant FSA guidelines in relation to this point, just curious, I'm always eager to learn more about the way the financial sector is regulated and how that impacts my financial circumstances?

Reference the Court comments, I took two previous creditors to Court in relation to unlawful penalty charges and won. This was Halifax and MBNA. Both times I was awarded full charges plus 8% statutory interest as the creditor failed to appear at Court.

The monies owed were paid directly to me by way of cheque, and both accounts were still open and active with each creditor at the time.

I therefore assumed this was common practice, but if this not the case in all circumstances, then that not entirely unexpected I guess.