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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3665
Experience:  Solicitors 2 years plus PQE
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I inherited a trust fund of £1,200,000.00 in 1991 while living

Customer Question

I inherited a trust fund of £1,200,000.00 in 1991 while living in the UK. I took citizenship here and have been domiciled in the UK. For the first seven years my family and I were living in the UK we were dependant on my funds based in the US and subject to the vagaries of the exchange rate every month. I was banking with Barclays Bank at that time and I estimate, given the ratio between dollars and pound sterling, I sacrificed approximately 1/3 of my funding between 1991 and 2008..
In 2008 the last of the American trust fund disappeared in the banking crisis. I retained several loans with Barclays Bank that are in default totalling approximately £30,000.00. In view of the recent judgement against Barclays Bank for manipulating the foreign exchange rate, do I have a case for obtaining compensation or, at the very least, getting them to forgive the outstanding loans? As I am now age 72, with a small US Social Security pension topped up by UK Pension Credit guarantee, I am unlikely to be able to clear this debt from future income.
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
Are you still living in the UK?
Did Barclays advise you at all on the exchange rates?
Kind regards
AJ
Customer: replied 2 years ago.

AJ,

I am a UK citizen and have no plans to leave the UK. I was well aware that I was losing money every month on the manipulations of the Exchange Rate. What I was NOT aware of was that Barclays Bank was unlawfully manipulating it for their own profit.

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Can you quantify your losses? Roughly how much would you have lost?
kind regards
AJ
Customer: replied 2 years ago.

AJ,

I already did so in my initial query. 1/3 of 1.2 million dollars. or $400,000.00. approximately. You have not answered my question!

Customer: replied 2 years ago.

AJ,

You have NOT answered my question! Do I have a case worth taking to a solicitor, or not?

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
As your bankers advising you, they had an obligation to provide the service with reasonable care and skill under the Supply of Goods and Services Act 1982 section 13.
In breaching this implied contractual term by negligently and potentially fraudulently manipulating exchange rates, you may have a claim against them.
Your options are:
(i) Write to them and demand full restitution for the loss you have suffered. If they do not adequately respond to your complaint then either:
(ii) Commence a high court claim against them for the loss on the grounds of breach of contract; or
(iii) Make a complaint to the Financial Ombudsman www.financial-ombudsman.org.uk/
Barclays will likely at some point either be ordered to compensate people or will set money aside for this purpose. Personally I would go with options one and three. The cost of a High Court claim will be extremely expensive (the court fee alone would be £10k) - any claim is likely to be slowed down or lengthy on the basis that the full outcome from the banking regulator has not be finalised. If you make a complaint to the bank they are required under their customer charter to investigate your claim and treat you fairly, if they do not then you will have a strong claim with the FoS. The FoS can then award you with compensation - the FoS is very slow but it will cost a mere fraction of a High Court claim.
I look forward to hearing from you.
Kind regards
AJ
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