Reserve Account is it legal

magster56

My Partner was recently told by his bank that he had a Reserve account on his bank account of £500 which he was not aware of & that he had been using it since August 08, he had not asked for this reserve to be added to his account but had been charged for using it is this legal & can he clain back the charges?

456789

I assume you are talking about Barclays personal reserve - yes it is legal

lorweld

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tradetime

Yes perfectly legal, although it may have been necessary to write to him and inform him about it. When Barclays initiated this on my account they wrote to me and informed me, I'm not 100% sure but I think I had the option at the time to decline, but if I did not reply then they would take that as a yes and go ahead.

McKneff

Do i presume that a reserve account is really just the same as an overdraft.

I have one with HSBC but i havent used it for years, its separate from my current account and i would only incurr charges if i 'dipped' ie 'borrowed'
from it.

tradetime

anniehanlon wrote: »

Do i presume that a reserve account is really just the same as an overdraft.

I have one with HSBC but i havent used it for years, its separate from my current account and i would only incurr charges if i 'dipped' ie 'borrowed'
from it.

To be honest, I've not really read the blurb, just enough tpo see that it wasn't something they could charge me for unless I used it, but it appeared to be an overdraft facility of some sort, I don't use it either. It's actually in addition to the overdraft facility, so probably costs even more, it's an overdraft on steroids.;)

JoeCrystal

Barclay sent a letter to everyone asking if they want to opt-out of Barclay Personal Reserves. I did so gladly.

tradetime

JoeCrystal wrote: »

Barclay sent a letter to everyone asking if they want to opt-out of Barclay Personal Reserves. I did so gladly.

Thought the option was there, but couldn't remember, was probably low down on my to do list and ran out of time.

McKneff

brilliant terminology,
overdraft on steroids:T

p1an0player

I can't see why you'd want to opt out of Personal Reserve? It's a buffer between staying within the agreed overdraft limit, and going into unauthorised overdraft. The fees are cheaper than unauthorised overdraft.

Paul_Herring

I can't see why you'd want to opt out of Personal Reserve?

Because it's so expensive to use?