Fees Refund on a Card with Debt Collection

ccawston

Hello all,

I have just received a letter from Barclaycard stating that there is a substantial refund due for fees, late charges and interest that was applied in error. However, the balance is with a debt collection agency and Barclaycard state the refund will be paid to them rather than to me. 

I would have thought that the refund should come to me as I had the contract with Barclaycard and those charges were made against my account. 

Can anyone advise whether I stand a chance of receiving the refund myself?

Thanks in advance. 

[Deleted User]

No - if you have outstanding debt, then the redress goes against that. Any excess would come to you.

sourcrates

If Barclaycard still owned your debt, your balance would have been reduced by the amount of compensation due back to you.

As it appears they have sold it on, they will pay that compensation to whoever now owns your account, thus reducing your outstanding balance.

So different remedies, but the same result.