Barclays closing account after requesting they temporarily freeze charges

[omissimo]

Hi all,

Can you offer some advice on this situation?

My wife has 2 accounts 1 barclays current (£300 od) and 1 barclaycard (£3,0000. She was made unemployed a few months ago so we wrote to Barclays to say she is unemployed and couldn't meet her repayments at the moment. She asked them to freeze the charges temporarily and offered token payments of £1 for 3 months. They wrote back to say that they accepted.

They have now said that they are terminating her accounts and recalling the debt and that her credit is **** for the next 6 years! So far she's been a really good customer and just needed some time to get a new job before she can pay normally. She just needed a to stop the debt spiralling while she sorted out a new job. Now they're **** her over when she did the right thing and asked for help.

[oscar]

Re: Barclays closing account after requesting they temporarily freeze charges

Standard practice for Barclays regards overdrafts I am afraid that they terminate a current account with an overdraft.

The debt rather than being recalled, passes to recoveries, and if the proposal has aready been accepted - it should be accepted by them In the short term.

[omissimo]

Re: Barclays closing account after requesting they temporarily freeze charges

She's just paid it off, but I suppose now that's too late. They also told her that they defaulted her. Need to check her credit file now.

[oscar]

Re: Barclays closing account after requesting they temporarily freeze charges

She's just paid it off, but I suppose now that's too late. They also told her that they defaulted her. Need to check her credit file now.

How quickly did she pay it of. If shes paid it off within a couple of weeks after telling them, she may be ok credit file wise.

[Never-In-Doubt]

Re: Barclays closing account after requesting they temporarily freeze charges

She's just paid it off, but I suppose now that's too late. They also told her that they defaulted her. Need to check her credit file now.

They can't just "default" her. There are limits and minimums - you need to be more specific - a lot more specific!

when did she stop paying?
when did she pay it off?
when did the bank agree to repayments?
when did the bank say they'd defaulted her?
did she receive a s.87 & s.88 notice?
did she receive a termination notice?

[omissimo]

Re: Barclays closing account after requesting they temporarily freeze charges

They can't just "default" her. There are limits and minimums - you need to be more specific - a lot more specific!

when did she stop paying?
when did she pay it off?
when did the bank agree to repayments?
when did the bank say they'd defaulted her?
did she receive a s.87 & s.88 notice?
did she receive a termination notice?

Hi NID,

thanks, to answer your questions

when did she stop paying?
She didn't stop paying altogether, she maintained payments on both accounts although she received some charges for late payments. At the time of writing to them she was 1 month behind with Barclaycard. We wrote to both Barclays & Barclaycard approx 2 months ago to say she was unemployed and ask if they would freeze interest/charges and accept token payments of £1 for 3 months to give her chance to get back on top. They immediately wrote back saying they accepted but would close her accounts.

when did she pay it off?
We paid off all of the Barclays OD yesterday and paid the over due payments on the Barclaycard.

when did the bank agree to repayments?
They replied within a week but the latest letter said they expected the payments from Sept.

when did the bank say they'd defaulted her?
She called them on the phone yesterday and was told this by the CS guy she spoke to.

did she receive a s.87 & s.88 notice?
No

did she receive a termination notice?
Yes, within a few weeks of sending the first letter.

[Never-In-Doubt]

Re: Barclays closing account after requesting they temporarily freeze charges

Ok thanks. You won't be defaulted at CRA's.

You should see a couple of AP markers then both the account should show "settled" unless they've allowed spending on the credit card again. If not it'll be closed but repayment meaning you just pay the normal monthly payment as agreed. ie 3% of balance whatever until it's paid off. Then it goes settled.

If they want to add a default at the CRA's you need to be +3 months in arrears usually. If they agreed to a temporary AP however, they cannot default you. Period (if you maintained the new arrangement)

[omissimo]

Re: Barclays closing account after requesting they temporarily freeze charges

Thanks NID, much appreciated.

[SaltnVinegar]

Re: Barclays closing account after requesting they temporarily freeze charges

They have now said that they are terminating her accounts and recalling the debt and that her credit is **** for the next 6 years! So far she's been a really good customer and just needed some time to get a new job before she can pay normally. She just needed a to stop the debt spiralling while she sorted out a new job. Now they're **** her over when she did the right thing and asked for help.

This is, unfortunately, the way that almost all creditors behave, and exactly what happened to me also. The whole 'please contact us if you're in trouble and we'll help you' line is complete BS.

The only people they are looking to help is themselves. They want people to alert them to the fact they may be getting in trouble so that they can limit their exposure to risk. As your OH discovered, what they will do is shaft you over even if you will be in a better financial position one the 'blip' is done.