Barclaycard raided my bank account!

[mgfboy]

Re: Barclaycard raided my bank account!

Surely if a bank buy debt from a third party thats it already in default it cant then offset that debt against your current account???

[SXGuy]

Re: Barclaycard raided my bank account!

There are some rules regarding offsetting, they cant just offset from any bank account, and if one bank buys a debt from another, i dont think they can just offset from a current account you had previously either.

Firstly, it has to be noted, that if you paid the debt from a current account that is linked in some way, i.e owned by the same company, then yes they can offset it.

But if you have a savings account for example, or you are a trustee, secretary who has access to an account for other purposes other than your own, they can not offset against that account.

Basically, from what i read and how i understand it, they can only offset from an account which shows you have made payments to that debt from it.

Im not saying they wont offset when that isnt the case, but the guidelines are clear and i guess you may have a right to argue.

[Susie]

Re: Barclaycard raided my bank account!

SXGuy, I am pretty sure that a bank can offset against any account you hold with them (not a trustee one though) even if its a savings account where no payments at all are made from. They cannot put you into an overdrawn position but can and will take what they can from wherever they can within their own group. Thats why its so important not to bank where you have debts and people are told to open another account asap so they get any pay/benefits or savings away safely. The only thing a bank cannot offset against is some benefit money as its the minimum amount needed to live on or is specifically for rent.
Sadly the banks are in a win win position where offset is concerned.

[Never-In-Doubt]

Re: Barclaycard raided my bank account!

Surely if a bank buy debt from a third party thats it already in default it cant then offset that debt against your current account???

Yes mate. If you use the Barclays / egg example.

You had an egg card defaulted. Egg never sold it to a dca and it thus got transferred to Barclays when they bought the egg portfolio. However you have no debt to Barclays but the fact they bought a debt of yours and moved it in their group (ie Barclays plc) means they can offset against the Barclays current account you have or savings you may have. They cannot add it to a credit card or loan.

That said, if you only have a barclays current account and they buy an egg debt they could face problems as Barclays retail (banking) is a different business unit to barclaycard (cards) and as such off-set is less likely to be picked up the same but they will still do it. Quite if it's legal I don't know but they can (and will) offset from a current or savings account.

[mgfboy]

Re: Barclaycard raided my bank account!

Yes mate. If you use the Barclays / egg example.

You had an egg card defaulted. Egg never sold it to a dca and it thus got transferred to Barclays when they bought the egg portfolio. However you have no debt to Barclays but the fact they bought a debt of yours and moved it in their group (ie Barclays plc) means they can offset against the Barclays current account you have or savings you may have. They cannot add it to a credit card or loan.

That said, if you only have a barclays current account and they buy an egg debt they could face problems as Barclays retail (banking) is a different business unit to barclaycard (cards) and as such off-set is less likely to be picked up the same but they will still do it. Quite if it's legal I don't know but they can (and will) offset from a current or savings account.

Well looking like I will have to just keep my account in it massively overdrawn postion then

[Never-In-Doubt]

Re: Barclaycard raided my bank account!

Well looking like I will have to just keep my account in it massively overdrawn postion then

[Enforcer]

Re: Barclaycard raided my bank account!

Have received latest reply from obudsman. Findings.
As I explained in my earlier letter, we do not have the power to decide whether a credit agreement is enforceable. This is something for a court to decide. I appreciate that you have provided me with a copy of the agreement and your arguments as to why you believe this is an unexecuted agreement. However, I will not overstep the remit of the ombudsman service by presenting a view on whether tis can be enforced. As requested, I have focused my investigation on whether Barclaycard has acted fairly and reasonably.
In the circumstances of your complaint, I do not consider that it would be appropiate for me to recommend that Barclaycard is unable to recover this debt. There is nothing to suggest that the funds were not borrowed willingly at the the time. I appreciate you are concerned about the rate of interest being applied to this account. Should you be experiencing financial difficulties Barclaycard has an obligation to treat you positively and sympathetically.
Later on in the letter.
Both Barclaycard and Barclays Bank terms and conditions refer to its right to set off. I appreciate that you believe the Barclaycard terms do not apply in your case, as you maintain your credit agreement is unexecuted. However, should this be correct, and I cannot decide that it is, I am not certain that this would mean that the Barclays Bank terms did not apply or that Barclaycard would loose its ability to apply general legal principles. It is my view that the Barclays Bank terms allow for the transfer of funds to Barclaycard.

[MrsD]

Re: Barclaycard raided my bank account!

typical pile of the usual fudge

[Enforcer]

Re: Barclaycard raided my bank account!

Any comments appreciated. The alleged agreement is a 2 part application, tick box for PPI then Barclaycard credit agreement. No prescribed terms, not even a reference to them! Contains the wording "when we consider your application" hence a future prospective agreement, described as void under cca 1974, also described as "unexecuted" by Judge Wacksman, however it is also "unexecuted" as there is no signature, not even a squiggle, by Barclaycard. Not dated by me or Barclaycard. This was sent to the ombudsman.
Do I bother repying to the Ombudsman again, before 12th October, or should I now go along the small claims route to get my money back?

[MrsD]

Re: Barclaycard raided my bank account!

enforcer, how much are we talking about here? I've read all through the thread and I can't find the figures. Basically if you still owe money to Barclaycard, and it sounds as if you do, then don't pay it as the account is obviously UE. I don't think even Barclaycard would be daft enough to take this into a court, so you need to sit out the 6 years(5 in Scotland) until the debt becomes SB. Everytime you write a letter to Barclaycard or the FOS you are admitting the debt in writing (unless you have been very very careful)and resetting the SB clock. This is how UE works, you keep out of court until it becomes SB.

How much did they take?
Is it worth your blood pressure or does the remaining balance offset it in your mind?

If you took this to court, it would cost you a fortune and I can't see a judge agreeing with you, it's harsh and unfair and not justice at all, but it's the way things are. Niddy's already told you about some of the sheer stupidity of some of the judgements and basically this is how it happens. You have to pick your fights (and we do) but the first thought of all of us is to protect the consumer (well someone has to), and you might be best protected by going for UE on this one and forgetting trying to change the law, because that would be best for you.

I understand totally how you feel, I could produce another 1000 stories that are just as infuriating, but you need to look after you and yours first, take on board what you've learned about banks, make sure they are never in a position to do any of this again to you or yours, it's hard I know.

[Enforcer]

Re: Barclaycard raided my bank account!

They took £310.42. This has since cost me about another £400.00 in charges!
Blood pressure already up, on 2 tablets a day.
Surely a judge in small claims would have to instruct them to return this!

[MrsD]

Re: Barclaycard raided my bank account!

they simply can't offset into your overdraft and cause charges, have you just complained about this?

the fact that it's a UE document is neither here nor there in this argument, it's just not allowed.

[Enforcer]

Re: Barclaycard raided my bank account!

Although you have explained that in taking this action Barclaycard took your current account overdrawn, it would seem to me that the account did not enter into a debit balance untill over a week after the transfer to Barclaycard. Furthermore, it appears that a number of card transactions contributed to this, including automated teller machine (ATM) withdrawals. With this in mind, it is my view that I cannot state Barclaycard alone caused your account to go overdrawn. Therefore, I do not agree with your argument that it did.

My position is that they took the money on payday. My electric is on a key meter, gas on gas card, water rates on a watercard. All paid in cash at paypoint at local supermarket. I pay for my weekly shopping in cash, council tax at local office in cash, petrol in cash. Because if I have it in my pocket, I know that Barclays will not refuse my debit card. How does the Ombudsman expect me to live for a month when Barclaycard have cleared most of my money?

[PriorityOne]

Re: Barclaycard raided my bank account!

They took £310.42. This has since cost me about another £400.00 in charges!
Blood pressure already up, on 2 tablets a day.
Surely a judge in small claims would have to instruct them to return this!

I've only scan-read this thread, so hope I've got it right.

They've taken £310.42 which under the circumstances, seems a narrow escape when compared to what they originally took and then refunded back to you. The charges that have been added since are neither here nor there; you have an unenforceable Agreement, so they mean zilch and should be treated as such. If you were to commence a legal battle over this however, it would cost you dearly, with no guarantee of success. If I were you, I would try and draw a line under this one, realise that it could have been a lot worse and respond to any demands for payment using templates, etc. from this site. If they want to bring proceedings against you.... let them. As Defendant, your position will be much stronger.

How does the Ombudsman expect me to live for a month when Barclaycard have cleared most of my money?

They won't care.

[Enforcer]

Re: Barclaycard raided my bank account!

All very well, BUT, the chances are that they will now come back and take even more. Green light from ombudsman. This is why I asked about taking it to small claims court. No executed agreement means no right of set off in accordance with Barclaycards terms, and it was Barclaycard who took this money. I feel that the judge must side with me on this one.