Monthly reduction of an overdraft

Sandb · 27 August 2014 at 3:37PM

Hi everyone
I have an overdraft with Barclays that I would ideally like to reduce on a monthly basis so I am not tempted to use it to the limit. I have spent 30 mins on the telephone to an adviser who has told me I would need to call each month to reduce the overdraft on a monthly basis. Obviously that is not a reasonable solution as the cost to call Barclays is made at my expense. As he was unable to resolve my query after waiting for a long while I will be getting a refund into my account in the next 48 hrs for compensation for my call cost and inconvenience. This was good customer service but unfortunately I am in the same position regarding the overdraft limit.
Has anyone else come across this brick wall, or is there another way I can get Barclays to reduce the overdraft on a monthly on going basis?
Many thanks in advance

National_Debtline · 27 August 2014 at 3:52PM

Hi Sandb

I'm pleased to hear that at least you will not be left out of pocket for the lengthy phonecall. Is there any scope for further conversations with Barclays to take place by web chat to avoid expense? I would also suggest going into your local branch but I realise a lot of operations are centralised nowadays.

It may be that you can force the issue by registering a complaint about the bank's insistence that you contact them each month. This may mean that your request gets dealt with by someone more senior than the member of staff you spoke to over the phone. They may simply not have had the authority to grant your request.

Please also remember that there are plenty of "basic" bank accounts available on the High Street which suit those looking to run a tight ship, while still offering useful facilities like debit cards, standing orders and Direct Debit.

https://www.moneyadviceservice.org.uk/en/articles/basic-bank-accounts

Regards

Dennis
Twitter: @natdebtline

FireWyrm · 27 August 2014 at 3:57PM

Perhaps you might be better approaching this from another angle.

Instead of calling Barclays to reduce your overdraft each month, why dont you simply move your banking to another vender and relegate Barclays to being 'just another debt'. By this I mean that you simply move your banking and live within a budget there and send a monthly standing order to Barclays for however much you wish to pay to the OD. This way, you cant overspend the OD because you dont have it, and it has the same effect as reducing your overdraft monthly. Once it is paid off, simply close the account with one easy phone call and never look back.

Sandb · 27 August 2014 at 4:04PM

Hi Dennis
I find that services within a Barclays branch these days are few and far between. A family member recently tried to take their overdraft off of their account as it has been paid up in full but they were advised they needed to telephone to do this instead. Hence my call today. I did ask the advisor for an address to write to and was given the Leicester centralised address which I am planning to write to in the hope that their system might be more flexible.
Thanks for your reply:)

Sandb · 27 August 2014 at 4:10PM

Hi FireWyrm
That is an option if I don't get any joy with the letter I send to Barclays.

FireWyrm · 27 August 2014 at 4:17PM

Sandb wrote: »

Hi FireWyrm
That is an option if I don't get any joy with the letter I send to Barclays.

So, why dont you do it? Is it that you are perhaps worried about giving up the OD but you know intellectually that you dont actually need it? We all get dependent on the stupid thing and it can be quite a leap of faith to simply stop using them once and for all.

I was forever in my OD for a decade or more and I never got anywhere until I bit the bullet and just jumped to a free, no frills, no OD account and started living within that stricture.

You wont get any joy from Barclays because you request requires that someone actually looks at your account monthly, notices that you need your OD reducing and then does it. They wont do it because if they do, and they send you overdrawn, you'll raise holy hell.

The only way to make this happen the way you want is to take control yourself.

Million_Percent · 27 August 2014 at 4:37PM

A word of caution. I seem to recall reading that requesting frequent reductions in overdraft can negatively affect your credit rating. I suppose it's seen as something people do when struggling to manage their money.

Might be worth looking into.

FireWyrm · 27 August 2014 at 4:41PM

Million_Percent wrote: »

A word of caution. I seem to recall reading that requesting frequent reductions in overdraft can negatively affect your credit rating. I suppose it's seen as something people do when struggling to manage their money.

Might be worth looking into.

There's that...but mostly it gives the banks the heeby jeebies and they may just withdraw the entire facility without notice. ODs are payable on demand.

Monthly reduction of an overdraft

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