Barclaycard and Mercers, Is this right?

Knocked_down,_but_not_out

Hi

1st post!

I had the joy of loosing my business at the end of 2007, which caused the collapse of my already fragile personal finances.

I have been able to get 'manage' the my personal creditors to date, following advice from national debtline.

I do however question what Barclaycard / Mercers have put in place.

I wrote to my card companies (Egg, Marks and Spencer and Barclaycard) advising them of the situation (zero income, company in liquidation) and pledged token payments (£1)

Barclaycard didn't respond to my offer, instead, they contiuned to charge interest onto my account (at arpund £150 per month), with a minimum payment demand of £130.

I must admit I didn't pay this my full attention due to everything else that was goin on, (Disgruntled ex employees, upset customers, etc).

Mercers then appeared on the sceen, demanding payments with the threat of action of their minimum payments weren't made.

I managed to secure a job and agreed to make payments to get them off my back (£81 per month, all I can afford).

I had to do this via my partners debit card as Barclays suspended my current account.

I made a first payment in Decemeber, but missed my January payment by a few days. Mercers then advised me that interst wouldn't be frozen untill I had made 2 months sucessful payments on the agreed date.

I have subsiquently made 2 months payments of £81 and mercers have confirmed that interest will be frozen for 6 months.

By my reconning, I have been charged 5 months interest at about £150 (£750) and paid 3 x £81 (£243), if I carry on for 6 months I will have paid a further £486, totalling £729.

Is this right? I am paying off additional debt created by Barclaycard, even though they knew my situation?

Any pointers or help would be greatly appreciated.

Broken_hearted

Sadly a lot of the time it is, I'd hate to work out how much of our debt is interest and charges.

Bismarck

Hi,

well done for posting and getting up again!

"Mercers then appeared on the sceen, demanding payments with the threat of action of their minimum payments weren't made."

Please advise what they were threatening as that is part of the picture....

keep on going!!

Knocked_down,_but_not_out

Bismarck wrote: »

Hi,

Please advise what they were threatening as that is part of the picture...

Hi

All the things that appear to be normal for mercers mainly threats relating to doorstep collections. Trying to explain the situation on the phone achieved nothing - I can't pay what I don't have!!!!

The words "sympethatic in financial hardship" are not in their volcabulary.:mad:

rog2

Sounds about 'par for the course' from MERCERS - but, then again, they ARE part of Barclays.
Have you thought about reclaiming your penalty charges?

Bismarck

Hi,

Thanks for that...I thought the threats were more serious - court things etc.....well done with the job...I'm in a similar boat following a business venture and the switch to being employed is something else that I'm trying to get my head around!

kel123_2

I was in a similar situation in 2004. Business closed but wife had an income.

3 months - managed to get dole
6 months - self employed
6 months contract

Durring this time we tried to balance everything afterall I'm proud. Basically a 48k debt rose to 56k. Head firmly stuck were the sun didn't shine. Then

NDL passed us to Payplan and we have been on a DMP for about 15 months. even then it took 6 months for me to do what they said

we now have no arrears and I am in the process of contacticting our creditors to see if we can claim some of the 8k back, i'm also going to ask for the cca's just incase.

By all accounts it looks like it will take me another 22 years to pay off. But weve payed off about 3k in 15 months so it will be shorter than that.

So thing do get better but it takes time

Kel

natters_2

Mercers are like dogs with bones - just when you think they have put the bone down for a rest they take another bite - I've gone for a year where they accepted reduced payments and froze interest - because we cant pay what they want they have started charging late payment fees and interest again.

I am about to cancel the standing order and write them a shove your fees where the sun don't shine and stick me in court letter to them.

fiveyearplan

There is a a thread on the CAG forum all about Mercers written by a former employee. It is very enlightening and worth a read.