Barclaycard - Taken debt without authorisation?

shanks84

Hi. I checked my online banking today for my Barclays current account, and noticed that there was a large debit for nearly £2000. I rang up telephone banking, and I was told it was Barclaycard

Long story short, I am in about £10,000 of debt, and have lost my home and everything. I am currently dealing with StepChange Debt company, and am set up to pay £170 per month to clear my debt, but Barclaycard have now completely ruined me by clearing me out (they waited the first working day after I got my first pay to take the money)

Can I do anything about this? Obviously I am devastated that this has happened. I spoke to the CAB and they saidd it shouldn't be an issue me having a Barclays current account with a debt to Barclaycard

Please help

giblet10

Unfortunately you've been a victim of 'off setting' - basically with having your bank account and credit card with the same company they have the right to just dip in your bank account when you owe them money on your credit card. Same thing happened to me with the Halifax in my younger years - I learned never to have credit card with same bank as my current account again.

You say you are dealing with stepchange - were Barclays aware of this at the time they took money out of your bank account? If so, then whilst within the letter of the law they can do what they have, I think it's a bit under hand. That said, if you are still in the early stages with stepchange Barclays might have seen you as 'won't pay' instead of 'can't pay' - a big difference these days between the two and how banks are expected to treat people.

shanks84

Hi. Thanks for your reply - yeah they were aware of it - wrote to them saying I was dealing with Step Change and gave them the reference number. I'm pretty convinced that I don't have a leg to stand on, but I'm absolutely gutted nevertheless

giblet10

shanks84 wrote: »

Hi. Thanks for your reply - yeah they were aware of it - wrote to them saying I was dealing with Step Change and gave them the reference number. I'm pretty convinced that I don't have a leg to stand on, but I'm absolutely gutted nevertheless

Hmmm then I agree it's a bit harsh. Can CAB write to Barclays on your behalf explaining the situation?

On a more practical note, have you now arrange for salary/income to be credited to a non Barclays account so they can't take any more?

mjm3346

shanks84 wrote: »

I spoke to the CAB and they saidd it shouldn't be an issue me having a Barclays current account with a debt to Barclaycard

Please help

Always have your account with a bank you do not owe any money to (and does not have any links with them either) regardless of the outcome get another account for any more pay to go into.

Stepchange will advise you but B/C should not have left you with nothing and may return some/all of what they have taken if they are informed you have a plan in place (I know someone who had A&L refund all they had taken and that was just from stopping an overdraft).

shanks84

Will contact CAB and SC on Monday. I will be changing bank accounts, so that Barclays can't do this again. However, there is only about £300 left to pay off now

fermi

http://www.fsa.gov.uk/consumerinformation/product_news/banking/set_off_changes

Using set-off fairly

If a bank is considering using set-off on your account, it should now:

• consider each case and estimate how much money needs to be left to meet your priority debts and essential living expenses like mortgage, rent, council tax and food bills;
• provide a refund, in most cases, if it becomes apparent to the bank that money taken in set-off was intended for priority debts or essential living costs; and
• not use set-off on money that it knows or should know is intended for certain purposes, such as where the NHS provided it for healthcare or a third party is entitled to the money.

You are also protected under guidelines from the Lending Standards Board, which say that banks should:

• try to contact you to discuss your options before set-off is used, and to explain when and how set-off can be used; and
• tell you when set-off has been used for the first time.

melbell

shanks84 wrote: »

Hi. Thanks for your reply - yeah they were aware of it - wrote to them saying I was dealing with Step Change and gave them the reference number. I'm pretty convinced that I don't have a leg to stand on, but I'm absolutely gutted nevertheless

They won't care you are dealing with them, Until stepchange get in touch they will see you as doing nothing about your issue.

The debit is correct but heartless.

shanks84

Thanks for that fermi - they took the money the first working day after I got paid - surely they can't do this?? Left me with £300 in the account - had no idea they were going to do it, or that they had done it. They knew I was dealing with a debt management company, and I had every intention of paying them back

What annoys me more is that if I didn't get a job (was unemployed when I first contacted CAB) I would be debt free in a year - system is a joke

fermi

Complain and quote that FSA info/guidance, stating that if they do not refund you the money to meet your reasonable living expenses then you will take the matter to the FOS. See what happens.....

shanks84

Will do that on Monday fermi - thanks for the advice. Just cannot see how they justify taking that amount in one go. So unethical