Barclays Reserve

octavia_2

I am another customer who, being really busy just trying to make ends meet, hadn't read the literature properly that Barclays sent through about the Reserve fee. They are charging £22.00 every 5 days! I have complained and asked for the facility to be removed from my account (it was applied without asking anyway). O.K. I know I should have been more scrupulous in checking the charges but had two hectic weeks and didnt! Now, I am £66.00 out of pocket and have learnt my lesson! Barclays bordered on being quite rude on the phone. I think that people should have to ask for the Reserve to be put on and sign something accepting the fees.

witches_cauldron

I am amazed that Barclays has the gall to introduce such a blatantly exploitative new device as this!

TotallyBroke

octavia wrote: »

I am another customer who, being really busy just trying to make mends meet, hadn't read the literature properly that Barclays sent through about the Reserve fee. They are charging £22.00 every 5 days! I have complained and asked for the facility to be removed from my account (it was applied without asking anyway). O.K. I know I should have been more scrupulous in checking the charges but had two hectic weeks and didnt! Now, I am £66.00 out of pocket and have learnt my lesson! Barclays bordered on being quite rude on the phone. I think that people should have to ask for the Reserve to be put on and sign something accepting the fees.

So what you are saying is you have been over your limit for approx. 15days.
I personally would rather pay £22 for 5days than pay the £35 charge for each time they paid something when I didn't have the money. (Maximum 3 per day so £105 in one day)

getmore4less

I am amazed that Barclays has the gall to introduce such a blatantly exploitative new device as this

Barclays sent out the letters and made it clear what was going to happen in plenty of time.

I think it is a good comprimise to help people out who have been negligent in managing their accounts. allthough there are fixed fees(£22 per 5 working days use, so per week) it is interest free.

It was an opt out though.

It is cheaper in most cases than the alternative of bounced DD or full charges for unauthorised OD.(£8 per transaction up to 5 charges a day) + the charges from those not getting paid.

If people need a buffer they should get an authorised OD.

octavia_2

I suppose what I am saying is that it was applied to my account without me seeking an extra facility, I was too busy to read the charges it would incur (my fault), and nearly fell off my chair when they told me how it works. Also, they were unhelpful and arrogant on the phone and I feel that they are almost luring people into more debt by this Reserve facility. I was quite used to operating within my overdraft and it really does prove that you have to be 100% on the ball all the time with the finances - being too busy to check things costs money!!!

getmore4less

TotallyBroke wrote: »

So what you are saying is you have been over your limit for approx. 15days.
I personally would rather pay £22 for 5days than pay the £35 charge for each time they paid something when I didn't have the money. (Maximum 3 per day so £105 in one day)

Up to 21 days it is working days.

The new fees for returned transactions are £8. max 5 per day so £40.

They will no not pay stuff if you go over without the reserve or an authorised OD.

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=homefreegroup&value=13392

getmore4less

octavia wrote: »

I suppose what I am saying is that it was applied to my account without me seeking an extra facility, I was too busy to read the charges it would incur (my fault), and nearly fell off my chair when they told me how it works. Also, they were unhelpful and arrogant on the phone and I feel that they are almost luring people into more debt by this Reserve facility. I was quite used to operating within my overdraft and it really does prove that you have to be 100% on the ball all the time with the finances - being too busy to check things costs money!!!

The reserve should be on top of your normal agreed OD.

Did they withdraw your OD and you miised the notice or did you go over it?

TotallyBroke

I was just using the 15 days as an example.
Myself I don't see it as a bad thing. I was someone that was regulary getting bounced payments and unauthorised payments. Then getting charged by the company and having a £30 charge slapped onto that.
So as an example:
Mortgage payment ~ not paid insufficiant fees
Barclays £35 for not paying it Woolwich £35 for now being in arrears
Gas bill ~ not paid insufficiant fees
Barclays £35 for not paying it
Mobile Phone ~ not paid insufficiant fees
Barclays £35 for not paying it
That would have meant that the next month I would have to find an extra mortgage payment plus mobile phone plus Gas bill. £105 of wages would've been swallowed up by bank charges plus I would have to find the extra mortgage charge and have a screwed up credit rating for another month.

Now I go over reserve amount and I get charged £22 say for going £1 over. I have 4 days to find £23+ before I get charged again. That is quite possible now. If I don't I get whacked again with £22 and so on. But atleast my bills are paid so my credit rating shows each month as being paid on time. So no-one will be taking me to court for non-payment.

Richard-N_2

I've just found out about this new "fee". Earlier this year I was spending some time in Paris and my current account went over the agreed £400 overdraft and I incurred some fees. On my return I went in to my branch to pay in some cheques and while I was there I asked if I would incur more fees while I was waiting for the cheques to clear. They couldn't give me a yes or no answer - they just didn't know and they were also snooty about the fact I had exceeded my overdraft limit. So, I asked them to transfer a small amount from one of the 4 crappy savings accounts I had with them (I'd opened them to take advantage of various offers over the years), at which point they saw I had a large deposit with them and their attitude completely changed and they offered to reverse the charges and increase my overdraft (for a monthly fee - so I declined).

Earlier this month, while I was in LA, the same thing happened - I went over my £400 overdraft limit and I was charged a £22 then another £22 five days later. I was a bit miffed because I had tried to transfer some cash from a savings to my current account online, but their site had been down for maintenance. So I called them and was told it's no longer a "charge" but a "fee" and they could not reverse it. I told the call centre worker they had done it before, but she insisted it was not possible with the new fees. I asked to speak with someone in the UK and they put me through to some customer service chap who basically said the same thing. I complained via the website and got a long written letter basically saying screw you we've checked and our fees are valid. I was convinced my branch would do the right thing (because they offered last time), so today I went in to my branch only to be stonewalled again. They said there was nothing they could do. I was fuming and asked them for all my money (in cash) and to close my account and they were fully prepared to do it rather than refund £40 in "fees" for a "reserve service" I knew nothing about.

I understand that they have to make money and I understand why they charge people for going overdrawn, but these b*****ds have a big pile of my money they they are lending out 10 times over (fractional reserve banking) which they are making a ton of money out of. When I transfer money online or in the branch it is instant - all of my accounts are instant access and I'm not making much in the way of interest from them. I see it as nothing more than a technicality that my money is spread around several accounts. So how they have the gaul to tell me they are doing me a favor I don't know. Well, technically yes, but in principle no.

I went across to HSBC and setup a new account there and will start moving my cash away from them.

Extant

Richard-N wrote: »

Earlier this month, while I was in LA, the same thing happened - I went over my £400 overdraft limit and I was charged a £22 then another £22 five days later. I was a bit miffed because I had tried to transfer some cash from a savings to my current account online, but their site had been down for maintenance. So I called them and was told it's no longer a "charge" but a "fee" and they could not reverse it. I told the call centre worker they had done it before, but she insisted it was not possible with the new fees. I asked to speak with someone in the UK and they put me through to some customer service chap who basically said the same thing. I complained via the website and got a long written letter basically saying screw you we've checked and our fees are valid. I was convinced my branch would do the right thing (because they offered last time), so today I went in to my branch only to be stonewalled again. They said there was nothing they could do. I was fuming and asked them for all my money (in cash) and to close my account and they were fully prepared to do it rather than refund £40 in "fees" for a "reserve service" I knew nothing about.

Ah, but you did know about it - because you'd used it before when you'd been overdrawn. We've simply formalized the agreement to make it clearer to the customer than before.

Previously, you could go over your overdraft limit, but we'd never tell you how much by, and you could be charged per item. Now, it's one fee for five days, and every customer can find out exactly how much they can overspend by.

I understand that they have to make money and I understand why they charge people for going overdrawn, but these b*****ds have a big pile of my money they they are lending out 10 times over (fractional reserve banking) which they are making a ton of money out of.

Yes, we operate fractional reserve banking instead of full reserve. That, however, doesn't make much difference unless you know the actual ratio in place.

A ratio of 0.01%, for example, would mean the bank only lent out 1p of every £100 on deposit. The ratio we currently have is 6%. So for every £100 held, we will lend out £6 of that again.

That ratio, coupled with the fact that we have a strict risk policy for all Barclays lending actually makes us incredibly safe.

When I transfer money online or in the branch it is instant - all of my accounts are instant access and I'm not making much in the way of interest from them. I see it as nothing more than a technicality that my money is spread around several accounts. So how they have the gaul to tell me they are doing me a favor I don't know. Well, technically yes, but in principle no.

You may see it as a technicality, but it is your responsibility to run your accounts in good order. This is the same with any bank. It's not our job to baby sit you and go transfer money when you can't be bothered to do it yourself.

Not only that, the right to offset is not one that should be used lightly.

I went across to HSBC and setup a new account there and will start moving my cash away from them.

Grass/greener, etc.

Gailk

A question, for BarclaysManager if he's around.
If I use the Reserve facility and get charged the £22 fee for five days, does it show on my credit report that I went overdrawn?
(I don't have or want an overdraft limit, but may need a little help over Christmas. I actually really like the idea of the reserve, but is it a little black mark or not?). Thanks in advance.