Another Barclays Nightmare

[Davidholford]

[COLOR=rgba(0, 0, 0, 0.701961)]I'll try and keep this short but it's similar to the original Barclays Nightmare thread but this has a twist so hopefully someone can help.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Apparently I had an account with the Woolwich which was merged to Barclays in the year 2008 and as such Barclays took the £165.00 ( now £179.0) debt on. Apparently they tried contacting me but because no contact was forthcoming they gave it to a debt collector in 2014. [/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]After numerous correspondence with both the debt collector and Barclays, Barclays gave me a good will gesture by writing off the £179.00[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Fantastic I thought, the defaults on my credit rating will be removed.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]2 months ago applied for a credit card, no problem I thought, but of course it was refused. Looking at my credit rating there have been defaults ever since the debt collector got involved last year.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Raised a complaint with Barclays and just spoke with their default department.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Now here's the rub;[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]I do not owe any money to Barclays as they paid the debt off as a "good will gesture"[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)]So I DO NOT OWE ANY MONEY TO BARCLAYS[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)]So I asked if they can take the default off my credit rating [/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)] No they replied[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)] But I don't owe you any money[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)] That's right they replied[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)] So how can the debt flag be removed from my credit rating[/COLOR]
[COLOR=rgba(0, 0, 0, 0.701961)] 6 years came the reply![/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]You can imagine the conversation that proceeded...[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]So I'm in a catch 22 as I cannot repay it so the debt will never be "repaid" and Barclays will not take the flag off because apparently I still owe them! [/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Yes I cannot understand this either. Next steps is the Ombudsman which takes time so any ideas would be gratefully accepted.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Still in shock.[/COLOR]
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[COLOR=rgba(0, 0, 0, 0.701961)]Just received another sweetener, £100 cheque![/COLOR]

[nemesis45]

Re: Another Barclays Nightmare

Hi, welcome to LB,

This is a familiar problem I'm afraid, making a payment either in full or as a reduced agreed " Full & Final Payment" does not affect the default status of the account, a default account remains on file for 6 years from the date of the default it is then removed permanently paid or not.

The Information Commissioners Office regulates the way defaults are placed and reported to CRA's and it expects Credit File to be accurate and up to date reflections of the conduct of accounts.
You can ask the ICO its opinion on the matter! I doubt FOS will want to get involved as this is a data control matter.
The fact the account defaulted is a matter of record.
What's the cheque for a " sorry we can't remove the default"?

nem

[FlamingParrot]

Re: Another Barclays Nightmare

Fantastic I thought, the defaults on my credit rating will be removed.

Sadly that's not how it works.

So I DO NOT OWE ANY MONEY TO BARCLAYS
So I asked if they can take the default off my credit rating
No they replied
But I don't owe you any money
That's right they replied
So how can the debt flag be removed from my credit rating
6 years came the reply!

You can imagine the conversation that proceeded...

So I'm in a catch 22 as I cannot repay it so the debt will never be "repaid" and Barclays will not take the flag off because apparently I still owe them!

It's not quite like that, no catch 22 because even if a debt was repaid in full, the default would still remain on file, only marked as 'settled' or 'satisfied', defaults do not get removed when they are paid off because the idea is that the CRA files should reflect your conduct with the account, if you defaulted on it then the default should stay in place for six years regardless whether the account is paid off in full, paid off in part or not paid at all. I'm not saying I agree with this but that's the way credit reporting works. :mmph:

So the default is there not because you still owe them but because you breached you contract with them so to speak when you defaulted. Once a default is recorded, it can only be marked satisfied or partially satisfied but not removed unless it was recorded in error in the first place.

Yes I cannot understand this either. Next steps is the Ombudsman which takes time so any ideas would be gratefully accepted.

I doubt there's anything for the FOS here, credit reporting falls under the remit of the ICO and from what I've seen above, they are acting within the reporting principles so there are no grounds for complaint.

Just received another sweetener, £100 cheque!

I'd love one of those sweeteners! :high5: What was that for?

[nemesis45]

Re: Another Barclays Nightmare

Reading through your post again it does look as if Barclays are going by the book on this.
It is course open to you to seek advice from the ICO on this, but I can't see any reason for
removal of the default.

nem