Barclays help!

Perscat

Hi! I'm not sure I'm posting in the right section but here goes We recently had a few financial problems and asked Barclays if we could possibly lower our loan repayments a little for a month or two. Their answer was to offer a loan to pay off our existing loan and overdraft. It was not mentioned at the time that our overdraft would then be removed.
It has now gone through and theyve also charged us interest on the old loan , we were also not told this would happen. In effect with the new loan this means we will now pay the interest twice on the same money. I have had a complaint registered for investigation.

In the meantime, can we move banks and carry on paying the loan repayments to Barclays or do we need to wait for the loan to be paid off?

Horseunderwater

They saw you coming. Banks never help you, just themselves. Doubt whether your complaint will have much merit as you should have asked all the details when you asked for the help and paperwork should have explained it to you. Another bank may only give you same type of account with no overdraft so probably not any better off.

meer53

But surely if you have repaid your overdraft you will be able to manage without it. If you can't then you need to have a look at your budget to see where the overspend is.

When you repay a loan, unless it is a fairly new loan, you would normally get an interest refund when the settlement figure is quoted, why do you think you're paying the interest twice ?

Perscat

meer53 wrote: »

But surely if you have repaid your overdraft you will be able to manage without it. If you can't then you need to have a look at your budget to see where the overspend is.

When you repay a loan, unless it is a fairly new loan, you would normally get an interest refund when the settlement figure is quoted, why do you think you're paying the interest twice ?

We can manage without it fine, just were not told it would be removed. We didn't get a interest refund, we were charged the interest the loan would have accrued at a recalculated rate and now will have to pay the interest again on the new loan/refinance.

I don't want to move banks for an overdraft, just to get away from Barclays.

CLAPTON

Perscat wrote: »

We can manage without it fine, just were not told it would be removed. We didn't get a interest refund, we were charged the interest the loan would have accrued at a recalculated rate and now will have to pay the interest again on the new loan/refinance.

I don't want to move banks for an overdraft, just to get away from Barclays.

very very very unlikely as this would be illegal


give us the full figures

JuicyJesus

There would be absolutely no point in consolidating an overdraft but to leave the limit in place. Often posters on here have had that exact thing happen, spent up to the OD limit again and then blamed the bank for the resulting debt. It cannot be had both ways.

You were, by way of the fact you were looking to lower outgoings, obviously in some form of financial distress. To leave the limit in place after that would be reckless, especially since you now need to use it again a very short time after consolidating it.

In short, you have no cause for complaint. Barclays have done you a favour.

Bloomberg

JuicyJesus wrote: »

There would be absolutely no point in consolidating an overdraft but to leave the limit in place. Often posters on here have had that exact thing happen, spent up to the OD limit again and then blamed the bank for the resulting debt. It cannot be had both ways.

You were, by way of the fact you were looking to lower outgoings, obviously in some form of financial distress. To leave the limit in place after that would be reckless, especially since you now need to use it again a very short time after consolidating it.

In short, you have no cause for complaint. Barclays have done you a favour.

What you have written is correct in its entirety. Furthermore I think that the story has been slightly embroidered to say the least.

Savvy_Money

I agree with the above. The OP asked for the overdraft to be paid off so it goes without saying that the bank has been responsible here by cancelling the overdraft. They consolidated the previous loan as it's unusual for a bank to allow two loans at the same time especially if someone has admitted they are struggling. As for the interest if you pay off a loan too early sometimes you have to pay 1 months interest depending on the length of time the loan had left to run. Most financial institutions do this. But the OP would have to pay this even if the loan was paid off early. The only loop hole is if you make an overpayment if the loan agreement allows you to. I think the OP would prefer to blame the bank but ultimately a loan is a product and not a charity.