Bank error when setting up a standing order

Jo-Anne1984

Hi,

I took out a 2nd career development loan in 2011 and all my paperwork showed that the payments would commence on 03/12/12. I agreed to this, but when Barclays set up the standing order they set it for 23/11/13.

I saw this as soon as the money was put in my account and called them to advise of an error. When I called them I was advised by the loan agent that the standing order was correct and the money would start coming out on the date it was set for - she was quite abrupt and made it seem as though I was wrong to question even though there was a discrepancy.

In September 2012 I went into my local branch to confirm whether this was correct and was told the same. When I advised that all my paperwork was set for 03/12/12 he advised that the standing order had been set for 2013 and wouldn't start coming out until then.

Now I'm in the position where a payment didn't go out and I've had Barclays calling to advise this, but they seem to disregard the fact that I tried to rectify their mistake twice, but was told the same on both occasions so I haven't made any provisions for these payments.

What do I do? They want me to pay more each month to cover the arrears starting from 03/01/13, but that isn't enough time to cancel some of my non-essential DDs like my gym, phone etc so I can pay off this loan without being completely skint for the foreseeable future.

Do I have a leg to stand on and is there anything that I can do?

Hope someone can help!!!

Oli.s

Have you spent the money you expected to go out for the standing order on something else?

Surely if you've only missed one payment the increase over the remaining payments can't be that much more?

Jo-Anne1984

I don't have the money for it at all, I wasn't prepared for it to go out so I can't cover it and I have just discovered that they have changed the standing order back without telling me and before anything has been agreed!

SnowTiger

Jo-Anne1984 wrote: »

Hi,

I took out a 2nd career development loan in 2011 and all my paperwork showed that the payments would commence on 03/12/12. I agreed to this, but when Barclays set up the standing order they set it for 23/11/13.

I saw this as soon as the money was put in my account and called them to advise of an error. When I called them I was advised by the loan agent that the standing order was correct and the money would start coming out on the date it was set for - she was quite abrupt and made it seem as though I was wrong to question even though there was a discrepancy.

In September 2012 I went into my local branch to confirm whether this was correct and was told the same. When I advised that all my paperwork was set for 03/12/12 he advised that the standing order had been set for 2013 and wouldn't start coming out until then.

Now I'm in the position where a payment didn't go out and I've had Barclays calling to advise this, but they seem to disregard the fact that I tried to rectify their mistake twice, but was told the same on both occasions so I haven't made any provisions for these payments.

What do I do? They want me to pay more each month to cover the arrears starting from 03/01/13, but that isn't enough time to cancel some of my non-essential DDs like my gym, phone etc so I can pay off this loan without being completely skint for the foreseeable future.

Do I have a leg to stand on and is there anything that I can do?

Hope someone can help!!!

Your dates don't make any sense.

As I understand it, loan repayments were due to begin on 3rd December 2012, which they apparently did.

If you have paperwork which shows they should begin on 23rd November 2013 I suggest you show it to Barclays. However, at best, you appear to be trying to take advantage of a small clerical error or typo.

Oli.s

I don't really think you can complain to the bank that they didnt take the standing order properly if you didn't have the money to go out in the first place, surely they will just argue that you;

A) should have had the money in the account and expect it to come out as per your conversation with them two months ago.

should have left the money in your account so that they could take it once they realised it hadn't been taken.

It sounds like if they had tried to take it on time it would have failed anyway and probably resulted in a charge.

Jo-Anne1984

The repayments were suppose to start on 03/12/12 but they set the standing order to begin inNovember 2013 & when i called to advise of an error they told me the standing standing order was correct and money wasn't going to be taken until 2013.

Because of their error & advice i don't have the money to start paying it back until March 2013 at the earliest.

I am looking for advice about where i stand & what options i havefor arranging a payment plan as i have never been in this position before.

DevCoder

You cant argue that because of one missed payment you cant start paying until 4 months later.

You were due to pay (according to you) on the 3rd december, they took the S.O 10 (physical) days earlier.

So they can put you back in the position (ie reverse the S.O for 23rd Nov and apply for the 3rd Dec, reverse any penalty interest).

The banks systems will then re-calculate the balance with any deposits and withdrawals you may have made (from 23rd Nov to 3rd Dec)

Bottom line is , after the above, you should have sufficient funds to pay the 3rd December payment as calculated by the system up to close of business 2nd December, else you haven't a leg to stand on.

Jo-Anne1984

Ok so they can change the standing order back to 23/11/2013?

DevCoder

Sorry, I missed the 2013 part. Should have read SnowTigers post.

No they won't, it's a clerical error (unless they offered a 1 year loan payment holiday, which they wouldnt have).

They'll amend the clerical error and will probably offer you the ability to pay the 1 missed payment off over a time period (maybe 3 months).

Or you can return the loan funds (I think you might just be outside the interest free return period, although youd have a case to argue returning the loan capital now without any interest added due to their error).

DevCoder

Basically, your paperwork shows the 03/12/12 correct?

The S.O has been incorrectly setup for 23/11/13
According to the paperwork that you signed you agreed to start payment on the 03/12/12.

Therefore as other people have said where was the funds to meet this obligation? If if you "spent" it then you now know you need funds to meet the Jan 13 obligation, and can ask nicely if the bank will spread the missed payment over the next x months.

Janie4Now

OP - write to the bank; explain the situation, copy them the paperwork. explain that you won't have any money until March because you weren't expecting to have to start paying the money out until November 2013 as confirmed by them in writing and verbally twice. Ask them to delay commencement of the payments until March without penalty because this is their error.

They might. Or they might not. If not, I would go the formal complaint route and see what happens.

Good luck with this; you knew it was a bank mistake so you should have had the money ready really but I fully understand how you feel about this! I think it's worth a try. Let us know how you get on!