Help with Barclays Overdraft Default!

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

Mate - good stuff BUT, and here's the thing - they can recall full repayment giving 30 days notice. All banks tell you an overdraft is NOT to be used daily but for cases of emergency; usually students get them as their grant clears it every 3 months.

Point is, the bank utilised their right to reclaim the overdraft. No matter what the customer says or does, if they do not remedy the demand the bank CAN default them.

It's black & White, clear cut I'm afraid mate.

I'm all for helping people as you know but I'm
Not so keen on building up false hopes. There are 3 options; no more no less. I listed these previously.

Yea by all means try appealing to the bank but do so using a sob story. Do not get smart cos they'll tell you to pissoff and leave the default anyway knowing full well if you complain to the FOS/ICO etc they'll agree with the bank.

Sorry but really; this has gone too far. It's simple - you're trying to dissect something that has no legal promise whatsoever as an overdraft is repayable on demand. That's the key.

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

PS; your last post is flawed at bullet point one. No, the op never kept to the terms as the bank recalled the overdraft thus the resulting default was lawful.

[kitkat]

Re: Help with Barclays Overdraft Default!

Thanks for your posts. Lots of food for thought! I understand that the banks are free to recall the overdraft at anytime; I guess I just feel frustrated that had I not included the O/D in the DMP they would not have terminated the account and therefore put a default on my credit file. Just frustrating the way the banks play the system!
Thanks again for all your comments and advice.

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

You know what I'd do?

1. Try a sob story see how that works

If no joy

2. Send a SAR and let's see what paperwork they really have? If they have a letter demanding repayment - game over. If they don't then take it further as you'd then have "more" ammunition so to speak.

But that's only what I'd be doing of course

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

Thanks for your posts. Lots of food for thought! I understand that the banks are free to recall the overdraft at anytime; I guess I just feel frustrated that had I not included the O/D in the DMP they would not have terminated the account and therefore put a default on my credit file. Just frustrating the way the banks play the system!
Thanks again for all your comments and advice.

That's really a big assumption. Its possible once the data feed came through showing A/P's to the other creditors they'd have recalled it then. Trust me, that's what they use the monthly feeds for!

Best of luck.

[kilasuit]

Re: Help with Barclays Overdraft Default!

I dont think its as clear cut as that Niddy.

Honestly i believe that in banks repeatedly telling customers (maybe like yourself or at least others from LB CAG MSE etc etc) that its not CCA compliant and need not comply then this is where the regulation and laws have made a potential suffering for all due to all banks following this non-compliance crap that they have spouted for years and years.

No matter thou i'm just showing that everything i have learned about Overdrafts goes 100% against the CCA which they are regulated by and have to comply with.
Yet again the banks dont comply with it and rightly they shouldnt because thats what they all do. You should know this better than anyone.

The banks categorically dont comply with 90% of the legislation that is there to protect the consumer. And get away with it.

UE for example.
Unfair creditor and debtor relationships yet another.
DCA's and Harassment yet another.
DPA yet the biggest problem that the banks cannot even follow.
The list keeps going on and on and on.

It wont stop because no matter what because of this country and its rather mellow and almost always troublesome "they said it so it must be true" approach to everything.

Sorry that this seems like a rant at you (or any other user on this forum) but i'm fed up of seeing people getting walked over by financial institutions (as i have done almost all my life) especially when it comes to overdrafts (i've seen charges amount to almost 4k in a year on 1 account) so in all fairness if i could find a way that would scare all the banks into real action then so be it i'll find a way.

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

Ok so when our sister site "Consumer Revenge" opens and we ask for your views on a super-complaint; this is one we'll debate and consider AFTER the main super-complaint which will be to clarify the lawfulness of CRA's and question the conflict of interest being the banks pay them; then allow them to abuse our data.

Anyway - as I say that's a whole new issue and we have a site in place ready to tackle these issues

[kilasuit]

Re: Help with Barclays Overdraft Default!

honestly though the 30 day recall would need to be a termination notice and issued properly

see where i'm goin with this???

[garlok]

Re: Help with Barclays Overdraft Default!

Hi guys,

As one who has been actually through most of this and in the end won with the help of professional legal advice. Niddy's take on this is completely correct. Ours was a relatively small business OD and the remnants of a business loan. Hence under no circumstances would it have fallen under the regulation of CCA1974/2006.

However they had behaved unlawfully in my view and that of my advisors in exercising a right to set off against the business account in our disputes with Barclaycard. However with a bit of care and application to the problem we won a Full and Final settlement at 10% of the outstanding amount. The disputed "set-off" was not even mentioned in the corrspondence by either party.

Be aware that this is not for the faint hearted neither will it work for everyone, as this falls outside the terms of reference of Statute Law and into the jurisdiction of Contract Law which has the baggage of expensive litigation if it goes wrong. Every case will stand or fall on its own merits.

I have in the past argued till I am blue in the face on the OD issue and its regulation, fundamentally there is no regulation only the terms and conditions imposed by the bank itself. The OP has on their own admission been on a DMP and hence they have inviolable right to call it in at any time and in fact without notice at all.

ODs are used by banks to make unregulated money out of you and I and nothing more. best advice is don't have one if at all possible. They are out to screw you.

regards
Garlok

[caspar]

Re: Help with Barclays Overdraft Default!

To follow on Garlok...... they are out to screw you, not only with them, but with every other financial institution by what they place on your credit record.

For the record kilasuit I don't think recalling an overdraft means the account is automatically terminated, so no termination notice would be needed, it's purely part of any banks T&C's.

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

honestly though the 30 day recall would need to be a termination notice and issued properly

see where i'm goin with this???

No mate, they can recall at any point giving you the necessary notice.

I see others have commented; cheers guys

[The Debt Star]

Re: Help with Barclays Overdraft Default!

I'm sure the Lending Standards Board's Lending Code says that if closing an account like that causes hardship then the bank shouldn't do it. Might be worthwhile having a read through the Lending Code.

[Never-In-Doubt]

Re: Help with Barclays Overdraft Default!

I'm sure the Lending Standards Board's Lending Code says that if closing an account like that causes hardship then the bank shouldn't do it. Might be worthwhile having a read through the Lending Code.

The lending code ---> s.9 Lending Code

A bank can recall an o/d whenever they want, it is an on demand form of borrowing, sorry - it's the way it is!

[The Debt Star]

Re: Help with Barclays Overdraft Default!

Section 9 of the Code. Have the Bank acted reasonably in withdrawing the overdraft in the manner they have? Yes they CAN do it, but if they have breached the spirit of Section 9 of the Code may be cause for a complaint to the FOS. That can lead to an account being recalled from closure and defaults removing from the CRFs -I know because I successfully did it last year.

[garlok]

Re: Help with Barclays Overdraft Default!

Unfortunately DS, they only pay lip service to that code which in my view is flawed anyway. Words are very cheap. It is only a voluntary code and they will do what they like. I have just checked the Barclays terms on ODs and they can just call it in without notice and without informing you, REGARDLESS of how you are and have operated the account. You will find out they have done it when your cheques get bounced and your SOs and DDs don't get paid.

regards
Garlok