Fees Refund on a Card with Debt Collection

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. 


  • zx81zx81 Forumite
    34.9K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No - if you have outstanding debt, then the redress goes against that. Any excess would come to you.
  • sourcratessourcrates Forumite
    25.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    Ex Board Guide.
    “A man who pays his bills on time is soon forgotten. - Oscar Wilde"
    “If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” -JPMorgan Chase"
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you. -Private Frazer"
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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