Barclays Secured Loan - Default Dispute

[Mode]

This is an interesting one for you and one which I have taken to the Financial Ombudsman. (I am not sure if they will be able to help but you never know!)

The long and short of this is that Barclays put my loan into Default after an insurance claim I had made on loan protection policy they sold me when I took out the loan (2006) had already paid out some monies. There is a bit more detail to add to that but the date of the default is unfair.

I have attached one of my letters to Barclays which I think sets out my argument pretty well - you be the judge - and is the best way to illustrate the nature of the problem. You may think it is a bit strong but I wrote it while being very annoyed and it made me feel a whole lot better!!

The account is fully up to date and still running with all payments being met.

Some help would be great as there may be a more legal approach I am missing as at the moment I am just applying common sense which is something that the "numpteys" you have to deal with at the bank call centres are not allowed to use!!

Thanks in advance for any help you can give me!!!

Cheers

Mode

[Pixie]

Re: Barclays Secured Loan - Default Dispute

I'm sorry no-one has been able to reply yet, I certainly haven't got the knowledge to answer it. Hopefully, someone will be able to reply later when they are in from work.

[Mode]

Re: Barclays Secured Loan - Default Dispute

Not too worry! Fingers crossed here!!

Mode

[Mode]

Re: Barclays Secured Loan - Default Dispute

Anyone?

Mode

[stevieb]

Re: Barclays Secured Loan - Default Dispute

I can only offer suggestions ...

after a quick read through im presuming you had the loan from before april 07?
if so grab niddy if they _have_ defaulted you then surely unenforceable _may_ be a way forward?

ill nose again after when I have a little more time :S

[Never-In-Doubt]

Re: Barclays Secured Loan - Default Dispute

Hiya

sorry for the delay - lets get this straight, please confirm the following:

-- They defaulted you whilst you were claiming PPI? If so, how many payments had the PPi paid and are you sure they were not missed? To clarify this point, PPi is only valid from the date of acceptance - until that point you must make all payments to the policy and the loan in order for the claim to be accepted and not voided. So, presuming you made a claim and then stopped paying your loan, and missed 2 payments, then Barclays could lawfully default you. I'm not suggesting you done that, i'm merely asking if anything like that happened? Did you miss any payments, I mean any?

-- I have not got the time to read all that document, so basing my answers on your post here - ok, please confirm when you last paid and when the insurance kicked in?

By the way, the ombudsman is the way to go after the bank issues a final response.

[Mode]

Re: Barclays Secured Loan - Default Dispute

Hi there NID!! ;Hi1

No need to apologise for the delay!!!! Thanks for coming back at all!!!!

The easiest way to show that is like this:-

October payment Missed
November payment Missed
December payment Late -was paid on 2nd Jan
January payment Missed but were in discussion with "Red Castle" and agreed payment plan
February Payment Part paid
March Part paid
Mid march - INSURANCE CLAIM MADE
13th March - INSURANCE PAID OUT (i.e the claim was approved and all the back payments were being processed)
6th April - DEFAULT NOTICE DATE (as shown on credit file - i.e. after the insurance had been approved) ;Hmm
7th April - insurance paid some
19th april - insurance paid huge amount to clear all arrears (this meant that the account was actually overpaid as the claim went back to September)

The bottom line of this, and my argument is that they defaulted the account AFTER the insurance had been approved and had paid out, it had not been paid in full but the amount was being processed and covered entire period from September.

The other massive issue for me is that we were not issued the letter advising that the account had been put into default until 24th August - 3 months after it was put onto our credit file.

Hope this makes sense. I am leaving this to the ombudsman but was hoping for a second opinion that I have a case!

I know that there are missed payments but technically I am arguing that they missed the boat on the date of issue and the insurance covered all the missed payments anyway - how does this make me a bad borrower!.

Thanks!!!

Mode

[diddlydee]

Re: Barclays Secured Loan - Default Dispute

I can only offer suggestions ...

after a quick read through im presuming you had the loan from before april 07?
if so grab niddy if they _have_ defaulted you then surely unenforceable _may_ be a way forward?

ill nose again after when I have a little more time :S

Just wanted to point out that Mode has stated this loan is [size=5]secured, Stevie. Think you may have missed this point, which was only in the title, not in the text.

DD x

[Mode]

Re: Barclays Secured Loan - Default Dispute

Yes, secured and pre 2007 (2006 in fact)

[Never-In-Doubt]

Re: Barclays Secured Loan - Default Dispute

The bottom line of this, and my argument is that they defaulted the account AFTER the insurance had been approved and had paid out, it had not been paid in full but the amount was being processed and covered entire period from September.

Yes, because at the time you had fell into arrears with the credit card - think of the insurance and the card as separate products, technically they should have refused your insurance BUT as they paid out, that does not mean barclays have to remove the default because at the time the default was issued, if you were one payment late then they had every right to issue one and you were several payments late - I presume, loosely, that you did notify Barclays of your pending claim, when you missed that first payment? i.e. you did speak to them and confirm that you couldn't pay and you were sorting the PPi claim - if not then you're kinda snookered. If so then the Ombudsman should be your next port of call.

The other massive issue for me is that we were not issued the letter advising that the account had been put into default until 24th August - 3 months after it was put onto our credit file.

Strange, they cannot do that - they also cannot backdate the default - as such they are in breach of s.87, s.88 & s.89 CCA1974, regards to the servicing of a default and the issuance - again, the Ombudsman is best to deal with this.

Hope this makes sense. I am leaving this to the ombudsman but was hoping for a second opinion that I have a case!

Most definitely, but that all depends on the inclusion of the terms of the account - if Barclays prove that you did default then the DN will stand - however as they breached s.87-s.89 this could get you out of jail, so to speak. You do need to mention the relvant acts when you complain to the FOS - don't just say "they can't default me" - tell them WHY they can't, i.e. "They never gave me appropriate time to remedy the breach in line with s.88 of CCA1974 (i.e. the 14 day period)!

I know that there are missed payments but technically I am arguing that they missed the boat on the date of issue and the insurance covered all the missed payments anyway - how does this make me a bad borrower!.

Ermmm, it all depends on answers to the above - presuming you done the right thing and notified barclays at the first opportunity that you were making a claim then you're not a bad risk based on the above - however if you failed to tell the bank, then of course the default accurately reflects the conduct of the account.... don't take it personally, they work by reporting "factual events of the running of the account"....

[Mode]

Re: Barclays Secured Loan - Default Dispute

Thanks for the reply and all noted.

What is the reference to pre-2007 all about?

Cheers

Mode

[Never-In-Doubt]

Re: Barclays Secured Loan - Default Dispute

Thanks for the reply and all noted.

What is the reference to pre-2007 all about?

Cheers

Mode

April 2007 the CCA 2006 Amendments came into full force regards to UE meaning certain elements of s.127 were repealed..... so any credit product taken after April 2007 cannot really be considered for unenforceability due to the fact they can present a recon to the court - so pointless trying cos they will just make one lol.

Its relevant to the CCA and in particular Unenforceability. See my signature for details of s.127.....

There were also amendments to the default part of the CCA as well - as detailed here: ---> viewtopic.php?p=118#p118

You should read that - read that whole thread ;--;