Credit card over limit advice..

Mobeyone

All, wondering if you can help.

I opened a student account with Barclays some 20 years ago and was also given a credit card with a small balance of £350 as a limit.

The balance carried forward for some time and i had set up a direct debit for the minimum payment and as been the case for a long time. I recall a long time ago being sent a letter advising of Barclays going paperless and that my bank account would be closing down and to register online if I was to keep it open. I didn’t and moved address some 11 years ago and cannot remember having been sent any correspondence to my new address.

Now, some 10 years later, I got a text message from Barclays saying I am overdrawn on my credit card by £8 pounds?! at first I thought it was a scam and ignored, the then got a message advising this had gone to around £14 over the credit limit.

I checked my bank account and yes, a DD is still set up to Barclays for around £9 a month and has been for a long time.

Now, I’ve not had a card from them or used this facility in a long time. I’ve sent a letter advising of the above and as yet have had no reply.

So, naturally worried and also annoyed, after 11 years or so I’ve either still got a balance of £350 which they’ve continued to charge me for? Which should have been paid numerous times over? Or I’ve had my card details obtained by someone?

Need some advise please.

[Deleted User]

Give them a call. Don't try to sort this by post.

MallyGirl

A DD doesn't have an amount set. They should take whatever is needed to fulfill your payment choice (in full or minimum usually).

eskbanker

MallyGirl wrote: »

A DD doesn't have an amount set. They should take whatever is needed to fulfill your payment choice (in full or minimum usually).

https://www.barclaycard.co.uk/personal/customer/pay-your-bill#accordion-content-1-0:

Direct Debit

Set up a Direct Debit and you can take your pick from three payment options:

• the full balance
• a fixed amount, as long as it’s at least your minimum payment
• the minimum amount

MallyGirl

Fair enough - OP may have set that amount and then not monitored whether it was even keeping pace with interest. It should probably have triggered 'persistent debt' procedures by now, before the limit got exceeded.

Mobeyone

Thanks all.

Iirc, it was set to collect the minimum payment?
Now, as so long has passed, and the debt has ballooned, increasing what was owed and still having a balance of the maximum allowed, surely something must have been in place to avoid this?

Why has it taken 10 years plus for them to get in touch with me? It’s ridiculous that they’ve allowed such a small balance remain both outstanding and still be owed after such a prolonged periods of
Time when even based on the minimum payment, the debt should have been cleared a long time ago.

Ben8282

Mobeyone wrote: »

All, wondering if you can help.

I opened a student account with Barclays some 20 years ago and was also given a credit card with a small balance of £350 as a limit.

The balance carried forward for some time and i had set up a direct debit for the minimum payment and as been the case for a long time. I recall a long time ago being sent a letter advising of Barclays going paperless and that my bank account would be closing down and to register online if I was to keep it open. Highly unlikely
I didn’t and moved address some 11 years ago and cannot remember having been sent any correspondence to my new address. You clearly say you didn't so what happened to this bank account? Was it closed due to failure to register ir online?

Now, some 10 years later, I got a text message from Barclays saying I am overdrawn on my credit card by £8 pounds? The term 'overdrawn' would not have been used in relation to a credit card account.Do you still have the same mobile number after all those years? ! at first I thought it was a scam and ignored, the then got a message advising this had gone to around £14 over the credit limit.

I checked my bank account and yes, a DD is still set up to Barclays for around £9 a month and has been for a long time. So this is the first time in all those years that you checked your bank account to find out if a direct debit was being paid to Barclaycard? Which account did you check? The account that was supposedly closed some 10 years previously that you had never registered for on;line banking and had failed to change your address on? You say you never had any correspondence at your new address so how did you get replacement cards etc? If the direct debit was still being paid after so long some funds must have been available in the account but surely you were not paying money in to an account you assumed to be closed? If sufficient funds were abandoned in the account to allow the direct debit to be paid then why didn't you just repay the card instead?
Now, I’ve not had a card from them or used this facility in a long time. I’ve sent a letter advising of the above and as yet have had no reply. Why you have not had a card for sometime is unknown. Prersumably they sent one to your previous address? Have you ever fomally closed the credit card account?

So, naturally worried and also annoyed, after 11 years or so I’ve either still got a balance of £350 which they’ve continued to charge me for? As you never repaid the balance, knew that you were being charged interest and ignored the account for over 11 years what do you expect? If you had paid more attention to whatever bank account the direct debit was bing taken from you would have realised long ago that you still had a balance. Which should have been paid numerous times over? If you had checked your bank statement over the course of the 11 years you would have realised that it had not been. Or I’ve had my card details obtained by someone? Don't start that one. That will not get you out of repaying your debt.

Need some advise please.

Another post of questionable credability.

Ben8282

Mobeyone wrote: »

Why has it taken 10 years plus for them to get in touch with me? It’s ridiculous that they’ve allowed such a small balance remain both outstanding and still be owed after such a prolonged periods of
Time when even based on the minimum payment, the debt should have been cleared a long time ago.

Because you moved and failed to change your address?
It is not ridiculous at all

born_again

Mobeyone wrote: »

I’m more than happy to pay off the debt in full and close the card, the fact that BC have continued to take a direct debit for over 10 years with no contact is what concerns me and a sudden message out of the blue.

So you have been paying a DD for 10 years and have NEVER NOTICED :eek: Clearly this has to be from a account that you fund and still use. Or that would also be in a chargeable position.

Yet are not happy that Barclays have only just contacted you. Despite you moving and not updating them with your new address.

Could be worse. They could have sent a card to old address and they have been using it....

phillw

Mobeyone wrote: »

Need some advise please.

Make a complaint, take it to the financial ombudsman if necessary.

Mobeyone wrote: »

the fact that BC have continued to take a direct debit for over 10 years with no contact is what concerns me

You did sign up to pay by DD and the money kept coming out of your bank, so maybe they didn't see a need?

SnowTiger

Mobeyone wrote: »

Why has it taken 10 years plus for them to get in touch with me? It’s ridiculous that they’ve allowed such a small balance remain both outstanding and still be owed after such a prolonged periods of
Time when even based on the minimum payment, the debt should have been cleared a long time ago.

This is a credit card account that's more than 20 years old.

IIRC on many cards the minimum payment was a percentage of the outstanding balance.

Now, minimum payment is a percentage of the outstanding balance plus interest.

There was a time when, after interest was added, the balance on a credit card account could increase despite there being no new spending on the account and the minimum payment being made.

OTOH there may be a continuous payment on the account the keeps bumping the outstanding balance up.

If I were you I'd request copies of statements. They will show what's happened.