Barclays overdrafts overhaul. Is it better or worse for you?

julialyubova

I have a graduate additions account with Barclays and an overdraft and before this personal reserve I used to have a £25 buffer on my account, which meant that I wouldn't be charged by going over my overdraft limit as long as I stayed within the £25. Anything higher than that was charged at £10 per item, maximum 3 times a month. This worked fine for me.

Now this reserve business, they took off the buffer so if I go over my limit even by a £1 they will charge me £22!! That's just scandalous as far as I'm concerned! They're covering up the illegal charges we've been fighting against and masking it up as 'personal reserve' making out it's such a great thing and confusing the hell out of people. I have to cancel my reserve otherwise, I will be slapped on the face every week by going a few pounds over my limit. Barclays should be shamed, shamed, shamed!

Oh and also, I just got off the phone with Barclays, trying to clear the 5 days confusion and I was told to stay well clear of the personal reserve by their own staff! Nice one!

BexTech

julialyubova wrote: »

I have a graduate additions account with Barclays and an overdraft and before this personal reserve I used to have a £25 buffer on my account, which meant that I wouldn't be charged by going over my overdraft limit as long as I stayed within the £25. Anything higher than that was charged at £10 per item, maximum 3 times a month. This worked fine for me.

Now this reserve business, they took off the buffer so if I go over my limit even by a £1 they will charge me £22!! That's just scandalous as far as I'm concerned! They're covering up the illegal charges we've been fighting against and masking it up as 'personal reserve' making out it's such a great thing and confusing the hell out of people. I have to cancel my reserve otherwise, I will be slapped on the face every week by going a few pounds over my limit. Barclays should be shamed, shamed, shamed!

Oh and also, I just got off the phone with Barclays, trying to clear the 5 days confusion and I was told to stay well clear of the personal reserve by their own staff! Nice one!

Barclays shouldn't be shamed, shamed, shamed!

Customers should be shamed, shamed, shamed for not learning how to budget or manage money. There is no excuse for even going into an overdraft let alone going past the overdraft.

Maybe if people stopped wasting £30+ per month of mobile phones, buy the latest TV or consoles, having the fastest internet etc etc. You learn you have to cut back on many things until you get yourself sorted.

In fact we went without a phone line as well as other luxuries until we made sure we had enough money in the bank to cover unexpected expenses and then made sure we didn't live beyond our means.

This is the problem people blaming others like the banks when the only person who is to blame is the bank customer. It's always blame someone else! Seems the nasty American blame disease is spreading across the UK.

Shame schools don't teach all kids budgeting and money management before they leave school.

shoe-queen_2

Tsk Tsk......if the only reason you think people are using overdrafts is because they are buying big screen TV's, computer consoles and other luxuries like a.......... mmmmmmmm........... phone, i am stunned!

As for there being no excuse at all for even going into your overdraft sometimes in financial hardship it is a necessary reality for a whole number of reasons to use such a facility.

in addition quite often its not about learning how to budget, but life can throw up unexpected financial requirements over and above the budgets of peoples monthly incomes and savings and an overdraft facility provides the access you need at times to finance the unexpected - I am really struggling to see the shame it that???????????

shoe-queen_2

Tsk Tsk......if the only reason you think people are using overdrafts is because they are buying big screen TV's, computer consoles and other luxuries like a.......... mmmmmmmm........... phone, i am stunned!

As for there being no excuse at all for even going into your overdraft sometimes in financial hardship it is a necessary reality for a whole number of reasons to use such a facility.

In addition quite often its not about learning how to budget, but life can throw up unexpected financial requirements over and above the budgets of peoples monthly incomes and savings and an overdraft facility provides the access you need at times to finance the unexpected - I am really struggling to see the shame it that??????????? :rolleyes:

Nathan_Spleen

BexTech wrote: »

There is no excuse for even going into an overdraft let alone going past the overdraft..

It is impossible to go into overdraft without the express permission of your bank and therefore your bank is implicit in creating and accomodating the 'excuse'.

newmum1

Folks I think we should all remember that you can opt out if you dont like or do not want to be part of this system. As soon as i read the letter i quickly opted out - be money wise try not to exceed your limit. I know easier said than done.

BexTech

newmum1 wrote: »

Folks I think we should all remember that you can opt out if you dont like or do not want to be part of this system. As soon as i read the letter i quickly opted out - be money wise try not to exceed your limit. I know easier said than done.

If you don't go past your overdraft limit then it doesn't matter if you stay in or opt out. If you are likely to go past your overdraft limit then for most people you are better of staying in the new system.

OK I was a little harsh with my comments earlier, it is difficult to get a point across sometimes on forums, I have gone through a few hard times and this did mean going without things, but having learnt budgeting and money management I soon made sure I built up a decent buffer zone in my account just in case you hit on bad times or something unexpected comes along. At the end of the day people shouldn't be going into their overdraft let alone going past it, if they are then it's time to sit down and write out the incomings and outgoings and then find out which things they can cut out. Maybe forget that mobile phone contract, drop the Sky TV, cut back on the phone, cut back the internet. With prices rising for food, gas and electric if people are sailing too close to the wind now, they are going to be in for a shock.

Sorry if I sounded mean before, it was not meant that way.

bbaby_2

BexTech wrote: »

You wouldn't have the issue if you didn't run your account into the overdraft, past the overdraft or simply just close to zero.

At the end of the day it is not the banks fault people can't budget correctly.

All people have to do is cut down of out-going expenses until they are several hundred pound or more in credit and keep it there.

Annoys me when people moan about the banks, when it is the customers fault really.

A&L will treat you the same, in fact I know people who are just as angry with A&L. With A&L and probably other banks you need to make sure money is in before 17:30. With A&L payments may be taken at 10:00 or 12:00 so if that takes you over-drawn then, you will be hit with a £25 fee, even if you paid in cash before 17:30 as you would already have hit the charges.

No its not the customers fault, it's fine for banks to charge a fees, but not a rediculous extortionate ones.

BexTech

bbaby wrote: »

No its not the customers fault, it's fine for banks to charge a fees, but not a ridiculous extortionate ones.

Customers wouldn't be paying fees if they kept their account in order. That's not the banks fault, it's the customers fault.

Customers wouldn't need to worry about what the fees are if they kept their account in order. Lowering the fees will just encourage more people not to worry too much about learning budgeting and money management skills and banks would simply claw back the money from elsewhere, so the vast majority of people; the ones who are wise enough to have learnt to budget and not live beyond their means would then lose out. Why should the sensible amongst us be the ones to pay for the ones who can't be bothered to sort themselves out? It's not like it is difficult to keep afloat even when just surviving on benefits.

Finance101_2

The personal reserve won't affect me because I keep my overdraft low and hardly use it. I opted out as soon as I noticed that I had been given the personal reserve. It would have made more sense for the Personal Reserve to be an opt-in, not opt-out, facility.

So if someone uses £100 from their personal reserve and they have to pay £22 for each 5 days, that's 22% interest for each 5 consecutive days. Would it not be better to increase one's overdraft limit instead?