Barclays has announced that it will refund some of its loan and credit card customers in arrears. Barclays says the refund will be given to customers who weren’t provided with adequate service.
Financial Conduct Authority (FCA) rules state that if a customer is in default or in arrears difficulties, the lending firm should, where appropriate, inform the customer that free and impartial debt advice is available from not-for-profit debt advice bodies and give them details. Barclays has admitted it didn’t always contact customers in arrears in accordance with its own processes. As such, it didn’t always assess their circumstances or offer them different repayment options.
In a statement on the Barclays website title “Arrears assistance review” a Barclays statement said, ” After a careful review, we found that from October 2013, we didn’t always provide the service we should have to some customers who were over their borrowing limit or behind in their loan or card payments.”
“We’re sorry and we want to make things right, so we’re returning interest and charges to those who might have been affected during this time. If that’s you, there’s nothing you need to do. We’ll be writing to those affected to explain their refund but it will take some time to get in touch with everyone. The average refund is around £300 and in most cases, we’ll refund you by reducing your debt.”
Barclays is also writing to affected customers.