Barclays Bank, Irresponsible banking or what!

woody2shoes

Hi,

Yesterday (5th Feb) I received my Bank Statement from Barclays, I have a simple current account, and as it is virtually inactive, but with a balance, I do not get statements last one beng this time last year, due to a last years transaction,

I noticed my statement showed I was £231 overdrawn, (plus £74 of bank charges) I was very very shocked, as I had not used this account, let alone making any any large payments to anyone...

I looked at the statement, and I noticed that Admiral Vehicle Insurance had taken an amount out of this account on 16th January....
I had used Admiral the previous year, (with debit card linked to this account) but as my Vehicle was not going to be re-insured at this time, I did not approach them for a new quote...
(according to the small print, beware, as the onus is on yourself to phone up and tell the insurance company that you do not want to automatically re-insure) So OK, for this part I will hold my hands up, and I was guilty of being Niaive...but thats not the main bit.....

As I had NOT the funds to cover the payment, how on earth did BARCLAYS let the payment go through...I had NO overdraft facilities!

I telephoned BARCLAYS assuming a simple error could be resolved over the phone..."Cough Cough" (you must be joking)

I said to the Advisor,
"If I came into the bank in person, and I had £200 in my account, but I wanted to take out £431 out...would you give it to me?"
She replied a simple
"NO of course not"

I then asked "Then why did you let Admiral insurance take out monies, that took me to £231 OVERDRAWN...?"
She Replied,
"Its because you have a £150 "reserve"

I argued that I did not even know I had a "reserve" let alone remember ASKING for it......AND NOT WITHSTANDING THIS FACT....they paid Admiral Insurance £81 over and above this £150 "reserve" (so thats logic out of the window straight away)

She told me that BARCLAYS gave customers this "reserve" in (approx "Aug" of last year)
I asked about the charges, and it was shown on my statement, I had an £8 charge, then another 2 x £22 .....
She explained further that this £22 charge is made every 7 days...So It quickly dawned on me that since the date of the statement, another £22 would have been applied to my account, totalling £74!!!!

I remember about 20 years ago, when first married, I had, (like most) cashflow problems that resulted in several direct debits not being made for small utility bills, often I would have "returned unpaid letters" for Electricity payments, and other utilities refused when somethimes I was only £2 overdrawn......but today......things are very very different.......they seem to be throwing a DEBT at somebody...which I deem IRRESPONSIBLE

DOES ANYONE ELSE AGREE THAT THIS BANKING PRACTICE IS IRRESPONSIBLE?

The very sad fact is, that there may be some poor soul out there who is very desperate for a £150 loan or overdraft for something important, who are being refused as I speak.....

Long and short of it is....I cannot do a darned thing about it.....and add insult to injury, I telephoned Admiral for a refund as my vehicle was Off-Road (and not needed to be insured anyway), and guess what?......because the FIRST time I was aware that they took money from my account automatically, for a fee NOT agreed......was yesterday 5th Feb......I was over the 14 days, So that is 14 days too late......A Double whammy for me!

I just wanted to Let this Forum know about this "reserve", as some people may think it is good....Its not....its not like a proper Overdaft at all......without any knowledge or notification from BARCLAYS...3 weeks have alapsed and they have, as Arthur Daley would say, "A nice little earner" for BARCLAYS..........WHICH IN MY CASE IS £74 in CHARGES.......

Not to mention the original £231 overdrawn, and Insurance I cannot cancel...

Edit; I have just been informed by another forum member, (because I made a reply to another post) that this £150 "RESERVE" Topic has "Been done to Death"....
I do apologise, and as I am new, I am appreciating that someone joining today, also NEW would NOT know about this topic being "done to death" either, I therefore apologise, (and did not expect to be jumped on about it, so soon) but something of the above may help someone, even if only a little bit......
The main point I was trying to make was,....Barclays even paid out over and above this reserve of £150.....they paid out another £81 ..which I believe is wrong......Yet for someone else, they would let someone default for this sum....

Robert_Sterling_3

You set up a Direct Debit.
This gave someone the right to take money from your account.
You took your eye off the ball.
They took some money.
This caused you to have an unauthorised overdraft.
In accordance with its terms and conditions the bank acted like a bank.

woody2shoes

Sorry I didn't set up any Direct debit,
I paid a full yearly amout last year to Admiral vehicle insurance, up front via Debit card, I have been sent a new card since, and it has a different security code...the card I used last year for Admiral...shouldn't have been honoured anyway,

I have insured vehicles for over 20 years now....never has this happened...

Robert_Sterling_3

OK. Then this is indeed most odd. I will be interested to see what other posters have to say.

EarthBoy

It looks like you signed what is called a "continuous payment authority" with the insurance company. This is similar to a direct debit, but using the card no. instead of your bank account and sort code. It means that the insurance company can debit the payment every year unless you tell them to stop. You might not have known that you were agreeing to this, but it should have been written on the initial application form somewhere. Or, if you applied over the phone, they should have made sure that you were aware of it. The 3 digit security code isn't needed for continuous payment authorities and it doesn't expire when your card does. It continues for ever unless you tell them to stop.

Whether the bank is irresponsible is purely a matter of opinion. In your case you think it was and that they shouldn't have paid out. Somebody else in similar circumstances might think that the bank did the right thing and they might have complained if the bank had not paid out.

milfordmadness

Robert_Sterling wrote: »

You set up a Direct Debit. WRONG
This gave someone the right to take money from your account. WRONG
You took your eye off the ball. WRONG
They took some money. INCORRECTLY
This caused you to have an unauthorised overdraft. WHY - THE OP DIDN'T ASK FOR ONE
In accordance with its terms and conditions the bank acted like a bank. REALLY? GOOD JOB YOU DON'T WORK FOR A BANK WITH THAT ATTITUDE!

My God!

Bold text in the quote above is mine!

In all your posts you are as diplomatic as a rapist in a womens camp! Have you ever considered that the OP knows these things and didn't want reminding of the facts but is in fact asking for help? LOL.... Maybe you're having a bad day or maybe you just like to be clever....?

noh

By taking out the insurance policy with Admiral you agreed to the terms and conditions of that policy.
The key features and the policy state (in the same size print as the rest of the document) that they will, shortly after the renewal date, automatically apply for the premium due using the bank/building society details held on record.

You clearly failed to read the documents sent to you by Admiral at the time.
I understand you have now read them and realise your mistake

When Barclays received this request for payment that exceeded your available funds they took a decision on whether to reject it or accept it based on their view of of your ability to pay.

Many insurance policies are set up in this way.
All banks I have had dealings with would do the same as Barclays.


Your situation has come about because you have not kept close enough control of your finances.

I have been sent a new card since, and it has a different security code...the card I used last year for Admiral...shouldn't have been honoured anyway,

If your talking about the 3 digit CVV code on the rear. That isn't required for the bank to make payment.

CLAPTON

I guess you're having a rant rather than asking for advice so just a few comments.

-The Barclays reserve was quite well publised with several mailing to customers and the opportunity to opt out.
Also the size of the reserve is shown on your bank statement albeit at the bottom and it's shown on the online screen.

-There was extensive discussions on these boards with many outraged and disgusted because of the potential charges and many thinking it was a good idea because it may save something important, like a mortgage payment bouncing with all the consequential hassle.

-You can cancel it if you wish: although do check the financial consequences before doing so

-The issue with Insurance companies and others with autoamatic renewals is pretty long standing. Personally I think it should be banned but as it's not then we have to live with it and read the renewal notices carefully.

woody2shoes

EarthBoy Said, "It looks like you signed what is called a "continuous payment authority" with the insurance company."

EarthBoy, Thankyou for your Comment, I originally got the Quote, Online from Confused .com, they put me through to Admiral, and as I was buying a new car that day, and wanted immediate cover, I paid, over the phone with my Direct Debit card, (I signed nothing!) received the Insurance certificate in the post in the next few days.....but they had to forward my covernote straight to the dealership that afternoon, for taxing purposes....so I was able to pick up the car 2 days later, without waiting for 2 hours in the showroom while they went to the main DVLA (change of taxation class)
I admit I am totally guilty for putting the certificate in the "car papers" folder, when it came through the post, like I have done so many times before...this part I take responsibility for...

and
CLAPTON says; "I guess you're having a rant rather than asking for advice so just a few comments."

CLAPTON, Yes, I suppose I am, :-)
If Barclays wrote to me immediately, I firstly would have been within the 7 or 14 days to be able to cancel the Insurance policy (who's details I did indeed overlook).....
and
I would not have incurred the 2nd, and 3rd weeks £22 charge...saving me a further £44

I have been refused payments in the past, (many many years ago) that, at the time caused serious consequences, when I had young children....
and a friend of mine was refused an emergency overdraft (for half the amount of my £231) last year by them....I just thought that what had happened was SIMPLY unfair......


noh says; "Your situation has come about because you have not kept close enough control of your finances."

noh, Thankyou for your Comment, I genuinely wasn't expecting the first insurance company I have ever dealt in over 20 years, with to renew a policy AUTOMATICALLY ......
What if I had died in the last month, and my family hadn't got round to sorting out my finances yet?
What If I had got 12 points on my licence the last day of my insurance?

These are just 2 reasons that I believe that this should not be done....
also It would have been nice to get a new quote from them if this was the case!

milfordmadness said in reply to Robert_Sterling
"My God!

Bold text in the quote above is mine!

In all your posts you are as diplomatic as a rapist in a womens camp! Have you ever considered that the OP knows these things and didn't want reminding of the facts but is in fact asking for help? LOL.... Maybe you're having a bad day or maybe you just like to be clever....?


milfordmadness= Thankyou for sticking up for me (and others I gather) I cannot believe that some people are so spiteful and caustic.....

If I am guilty of being Naive, or not being thorough..then so be it.....thats my only crime.....but I really didn't expect such hostility, I was even "pounced on" when I commented on another topic...where the "reserve" bit "had been done to death" do people not realise that some people come on a forum for a bit of support, and have not always read through somewhat 1,000's of "Posts" beforehand, as they are NEW...


I will not be posting again...

JamieD_2

You may personally feel that a bank is not acting properly, and of course you are free to state your opinions, however the reverse is also true. Many people on these forums work, or have worked for financial institutions, and are proud of the work that they and their colleagues do. It's not unsurprising that they will defend the actions of the bank in question. You'll generally find that if a situation is expressed as a request for help and advice, it will be given. If it is a rant describing a bank acting illegally, wrong, immorally etc. the resulting posts will probably contain criticism of yourself for failing to act in a certain way.

I'm not suggesting that banks and building societies are blameless in all their doings - errors can and will occur, sometimes causing the customer great inconvenience. But like almost all large businesses they operate within clearly laid out rules and guidelines, terms and conditions. There is legislation in place to protect the consumer but every individual must take responsibilities for their own actions.

Calchas

In short, those who post questions get answers and advice often from people who frequent this site and work, or have worked, in financial institutions. This advice is often good advice and appreciated by many people, I am sure.

The downside, however, is that the posters who benefit from the good advice sometimes have to put up with what is often boring, prejudiced, embittered and totally biased opinions of the same people whenever a topic of a subjective nature is being discussed.

Criticise at your peril!

My own view is that the good outweighs the bad; just!