Barclays Advance Account

[Enforcer]

Re: Barclays Advance Account

Letter received from Barclays dated 14 April 2014 in reply to my letter of 19th November 2013. As requested, we are pleased to provide you with a copy of your credit agreement and a financial statement.
Unfortunately, they have sent the same paperwork as last time. Still UE.
Letter on the way back to them, enc. FCA CONC 13.1 to 13.1.6. Sit back and wait yet again.

[Enforcer]

Re: Barclays Advance Account

I have been reading the Judgement of Judge Wacksman in the case of Sternlight & others v Barclays.
He ruled that the interest rate is the driver of an agreement not the APR. However in the case of this account, neither the interest rate nor the APR have been varied.
The interest rate is quoted as 0.952% monthly and the APR as 11.9%. .952% monthly equals an APR of 12.04% not the 11.9% as stated. Would this case overrule the original mis stated rate?

[Enforcer]

Re: Barclays Advance Account

A short update. No default notice issued. Account has not been closed. No attempt at right of set off. No statement this month. Despite writing to them and advising that they have not complied with my S78 request, instead of "corresponding with me" they have for the 3rd time sent a copy of their previous rubbish. Really don't know what they are playing at!

[Enforcer]

Re: Barclays Advance Account

Had a different type of letter today. Advance Loan - Arrears Notice, This is after 8 months of non payment, and no default notice.
Dear Enforcer,
This Arrears notice is given in compliance with the Consumer Credit Act 1974 because you are behind with your payments.
If you have not already agreed a repayment plan and are having trouble making your payments, please call us to discuss your account further.
Your Transactions
Arrears Balance Carried Forward: 0.00
Date Description Amount Payments Received
14th May 2014 Minimum Monthly Payment Due 71.30
14th June 2014 Minimum Monthly Payment Due 71.99
Net arrears for this period 143.29
16 Jun 2014 Total Arrears Outstanding 557.35

This is not a demand for immediate payment if we have already reached a repayment arrangement with you. If an arrangement has been made this will cover the arrears in this notice and you need not contact us.
If we have not agreed a repayment arrangement then please contact us immediately to arrange repayment of the quoted arrears.
The moves on to Statutory Notices.

Not paid for last 8 months, no default notice, no proper compliance with S78 request still charging compound interest at what I consider to be the wrong rate.

Any suggestions on what to do next?

[MrsD]

Re: Barclays Advance Account

I would just ignore that, it's kind of routine

[Enforcer]

Re: Barclays Advance Account

Monthly statement received, still charging interest. Usual threatogram message on statement. You have failed to make a minimum payment. Failing to make your minimum payment can mean that you have broken the terms of this credit agreement and could result in us taking legal action against you. It could lead to your having to pay additional costs and make it more difficult for you to obtain credit in the future.

Still no default notice. Still adding interest. Should have been defaulted after 6 months of non payment. Wonder what they are playing at?

[SXGuy]

Re: Barclays Advance Account

Racking up the debt before termination and sale of account no doubt

[Enforcer]

Re: Barclays Advance Account

I agree that the "normal" practice is to "balloon" an account before sale. However, as they have not defaulted this account after 8 months, how do I deal with the additional interest that has been charged?

[SXGuy]

Re: Barclays Advance Account

You don't for now. Wait till it's sold the argue it. It's ammunition to use against them. Should they litigate. For now if you ain paying it makes no difference what the balance is. Remember also that statute barred is different to default date. We argue these things when the time is right.

[Enforcer]

Re: Barclays Advance Account

just had a text message from Barclays.
We confirm complaint reference Number A----- has now been investigated. If we have not already spoken to you about the outcome, you will receive a written response shortly. Thank you.

Interesting to see what their letter is all about, will keep you informed.

[Enforcer]

Re: Barclays Advance Account

Another Statement today for this account, still adding compound interest. Should have been defaulted months ago!

[Never-In-Doubt]

Re: Barclays Advance Account

A current account usually gets defaulted a year later - no earlier than the OD annual review.

Example. You apply for an OD in March. Every March they review it and reduce or increase or leave the same. On occasion they remove it and demand immediate repayment. However lets assume you stop using the account in April (year irrelevant); the bank can at their leisure do any of, any combination of, all of or none of those actions.

Usually they'll let it go till the review (following March / 11mths) and they'd then remove the facility as you breached terms (by not using account) and they'll start recording [1]'s to [6]'s afterwhich they'll default you. So that'll usually be around 19 months AFTER you last used the account.

However if you exceed the agreed OD then they'll record 1's to 6's pretty much after a month (in our example it'd be May/June) and keep a trailing [6] right through till the review the following March before agreeing to leave the OD in place or removing it before defaulting you. If they leave it, you'll get another year of [6]'s before they default it.

My hsbc has 3 years of [6]'s. I'll argue when I'm sure it's SB'd

Questions?

[Enforcer]

Re: Barclays Advance Account

I did not think that the Advance account was a current account. But maybe you are right. Barclays closed these accounts down in 2011, no further transactions allowed. However I am not paying them, so it really doesn't matter unless it goes to court at a future date. Waiting for the letter they are sending following text message.

[Never-In-Doubt]

Re: Barclays Advance Account

The Advance Account WAS a bank account however operated much like a credit card with a limit that you could spend either on your debit card or with cash.

Is this the account we've been battling the FOS with? If so then we've already proved theft by the bank by utilising RoSO when their terms do not allow it. I doubt a claim will arrive if it's that account.

[Enforcer]

Re: Barclays Advance Account

No, this is a different one. The FOS ruling was against Barclaycard.