The Barclays Conundrum

Meatloaf1981

I've been in a semi-self-administered DMP since March. technically it has been arranged through Workplace Options, that sort out the DMP for me and then I make direct payments to each of my creditors for the agreed amounts, in the form of Standing Orders.

I had a current account with Barclays that had an overdraft facility of £5k. I was under this when I decided to enter into the DMP in March but since then, having swapped to my Natwest bank account I already had to sort out my direct debits and other matters, to whom I owe nothing, Barclays have repeatedly failed to "close" the account and so I currently owe them more than £5200 whilst they drag their heels over the closing of the account.

I can't help but think this is a cynical attempt to add some extra cost to my repayment of the overdraft, albeit it doesn't make sense for them to do that as I can currently only pay them £6 a month whilst they had £70 in interest each month. Ludicrous doesn't even cover it.

Anyone else had this issue with Barclays? They assure me that interest has now been stopped but what has accrued to date will stand whilst their collections team start to deal with me.

happy_bunny_2

So how much interest have the added in total to the OD while you have been making reduced payments?

sourcrates

If the interest added to date is excessive, I would certainly slap a written complaint on them, go through there complaints procedure, see what happens, if no joy after 8 weeks, you can take to the FOS, and they will decide weather the interest has been added fairly or not, and all for the price of a stamp !!;)

Meatloaf1981

happy_bunny wrote: »

So how much interest have the added in total to the OD while you have been making reduced payments?

Well, bearing in mind Barclays were approached in March this year to freeze my account, and at that time I had about £80 left in my £5000 overdraft, I am now at the level shown in my signature.

I have made 4 payments totalling £32 since then, so clearly the interest has far exceeded my ability to repay.

Meatloaf1981

sourcrates wrote: »

If the interest added to date is excessive, I would certainly slap a written complaint on them, go through there complaints procedure, see what happens, if no joy after 8 weeks, you can take to the FOS, and they will decide weather the interest has been added fairly or not, and all for the price of a stamp !!;)

Thanks, I guess all I am worried about is if they come back and reject my DMP payment plan as a result of complaining! If they refunded any amount (And I understand they can do so up to 6 years if in hardship so long as it is warranted), then I would expect and appreciate it being simply removed from the outstanding balance.

happy_bunny_2

I don't think I would rock the boat.

They don't have to freeze interest.

They have basically added just over £400 in interest (and charges) before agreeing to freeze them. could have been more for longer.

If it were me, I would be interested to see how they intended to mark my credit file. If they mark as arrangement for years it ain't doing you any favours. I would ask if you don't know already.

Just my opinion...