Barclays just put me in 200k debt for no fault of my own

Wont_be_beaten

Go into the bank DEMAND they put in writing that due to THEIR error they are refusing you access to your money. Tell them that you are not leaving without either money or a letter.

tomtontom

This afternoon you need to do two things:

Go to your doctors, the local Jobcentre or the council and get a food bank voucher. Collect said food to see you through the weekend.

Go to the bank and do not leave until you have some funds. They are unlikely to resolve the whole issue today, but they do have the authority to release emergency funds. And what they can do is actually get on the phone to people that can help - this is not the time for emails that may not even be read today, let alone actioned.

Julie_Lavender

Unfortunately its not that simple. 11 days ago Barclays froze our business account, took all the money out (including the reserve account) and won't explain why. They said its "a technical glitch". Their terms and conditions say that if we report an unauthorised withdrawal (which we did) they refund the monies immediately (which they haven't), so it is clear they have breached their own legal terms. It is not fraud (we've spoken to the NCA) but after being on the phone all week now to various departments they absolutely will not help us. They have breached the FCA rules as (like James) they have given a verbal complaint reference no. but resolutely refuse to put it in writing, i.e. officially acknowledge a problem. We managed to speak in person to a manager of a large London branch who, after making some calls for us, said he just could not help. We have been writing to the CEO of Barclays Retail and Business and, although we can see from our end the emails have been opened, they will not respond. All our money is in these two accounts as we hadn't had a chance to make our monthly transfer to our personal account. Although we are only a small business, they know we have always been solvent with them, but will not grant a temporary overdraft in a temporary account. Nobody is going to give you a loan with a frozen bank account.

I don't know just how loud you can shout about this. Of course, we have put it on twitter as well as a large blog on our linkedin page - and we have contacted the press (there may be something materialising from that next week). Our MP is doing all he can - but, although they have acknowledged his enquiry, they won't won't speak to him either.

I think you are right Sharon and the lesson is that we should spread our money around more - which we ordinarily try to do. However, we are only a small business and had placed monies with them to pay some larger bills - i.e. the Inland Revenue who do like to see a clear trail if you are running a company. Those of you that have a small business with very sporadic payments coming in, will know how fragile it is and how a cash flow situation like this can bring a business to its knees very quickly. We have no money to trade, pay bills, or after this weekend, live.

Something like this happened to another user of these forums - and they didn't give him any compensation from what I can see from the last time he posted here.

I know my story is different to James's - but the point is I think they don't want to formally acknowledge there there are these huge security holes in their computer systems which would have a massive effect on customer confidence in them.

sourcrates

Julie_Lavender wrote: »

Unfortunately its not that simple. 11 days ago Barclays froze our business account, took all the money out (including the reserve account) and won't explain why. They said its "a technical glitch". Their terms and conditions say that if we report an unauthorised withdrawal (which we did) they refund the monies immediately (which they haven't), so it is clear they have breached their own legal terms. It is not fraud (we've spoken to the NCA) but after being on the phone all week now to various departments they absolutely will not help us. They have breached the FCA rules as (like James) they have given a verbal complaint reference no. but resolutely refuse to put it in writing, i.e. officially acknowledge a problem. We managed to speak in person to a manager of a large London branch who, after making some calls for us, said he just could not help. We have been writing to the CEO of Barclays Retail and Business and, although we can see from our end the emails have been opened, they will not respond. All our money is in these two accounts as we hadn't had a chance to make our monthly transfer to our personal account. Although we are only a small business, they know we have always been solvent with them, but will not grant a temporary overdraft in a temporary account. Nobody is going to give you a loan with a frozen bank account.

I don't know just how loud you can shout about this. Of course, we have put it on twitter as well as a large blog on our linkedin page - and we have contacted the press (there may be something materialising from that next week). Our MP is doing all he can - but, although they have acknowledged his enquiry, they won't won't speak to him either.

I think you are right Sharon and the lesson is that we should spread our money around more - which we ordinarily try to do. However, we are only a small business and had placed monies with them to pay some larger bills - i.e. the Inland Revenue who do like to see a clear trail if you are running a company. Those of you that have a small business with very sporadic payments coming in, will know how fragile it is and how a cash flow situation like this can bring a business to its knees very quickly. We have no money to trade, pay bills, or after this weekend, live.

Something like this happened to another user of these forums - and they didn't give him any compensation from what I can see from the last time he posted here.

I know my story is different to James's - but the point is I think they don't want to formally acknowledge there there are these huge security holes in their computer systems which would have a massive effect on customer confidence in them.

You should forward a complaint to the FOS, after 8 weeks, they will investigate, and if the bank is found to be wanting, then they normally award compensation, it does take time though.

asparagus1968

owlet wrote: »

While this is going on, go to another bank & open a basic account. Then phone ESA and any other benefits you receive like child benefit & give them your new account details so that your next lot of money can be paid into your new account & is accessible to you.
Do this straight away.

excellent advice, along with getting a food bank voucher.
so sorry you are going through this, hope your family and friends can support you too.
good luck

DandelionPatrol

Julie_Lavender wrote: »

I know my story is different to James's - but the point is I think they don't want to formally acknowledge there there are these huge security holes in their computer systems which would have a massive effect on customer confidence in them.

Security holes? I would not put it past the banks to be dumping £200,000 of overnight losses on some big deal on to a random account while they try to cover up their mistake.

owlet

I'm sure the bank can't with hold benefits & have to pay you this whatever. Have you told them it's benefit money specifically?

DevCoder

DandelionPatrol wrote: »

Security holes? I would not put it past the banks to be dumping £200,000 of overnight losses on some big deal on to a random account while they try to cover up their mistake.

You do know thats not how basic P&L accountancy works?

The balance sheet of the customer accounts is no separate from that of the banks own internal accounts, the banks "position" and the P&L that comes off that is calculated on the entire banks holding in each currency.

tomtontom

owlet wrote: »

I'm sure the bank can't with hold benefits & have to pay you this whatever. Have you told them it's benefit money specifically?

That's wrong, unless the OP requests the amount to be ring fenced in advance then benefit income has no special status. The law on this subject is often misunderstood.

JamesJUK

I was able to get the benefits today. Someone in Barclays left a note on the system to authorise the benefits payments but NOT any other monies I had in the account. My friend sent me some money the other day for a phone, and thats still being held too. As is the savings I had.

I asked to withdraw it, but they said they couldn't. I'm still in the dark about everything. I've gave up ringing the call centre staff. They're about as useful as a chocolate teapot.

How a bank can mess up this big is beyond me. Thanks for the replies and the advice, it's much appreciated.