Paying off an overdraft

itn

Hi,

I have a overdraft with barclays, my limit is £4170, with a personal reserve of £500. My wages go straight in around £1200 and £1400 monthly.

Now, after expenses I always go over my limit and this month I have incurred 4 times £22 charges, with this causing me to go over my reserve amount. They have charges me 3 time £8 for guranteed payments, payments they have authroised are £1.60, £1.60, and £3.20 for a NCp car park.

This is totally unreasonable!. what can I do?...

If was to move bank accounts how do i make arrange to clear this overdraft./

smsfrancis

You may want to click on the "Reclaim £1000's" tab at the top of the page, has an article about bank charges. Case is up with the House of Lords and so won't be a quick fix but may be worth preparing for.

Other than that, have you spoken to your bank about these charges in an attempt to stop them and prepare a payment plan of sorts?

imindebttoo

Hi itn

I have a similar account with Barclays - and have been in the same situation. I currently use a Coop Cashminder account - and repay the barclays overdraft at £1 per month - this does not prevent the charges being added however.

I was made fully aware of the charges as part of my credit agreement - however, if the whole 'bank charges debate' is finally decided in favour of the consumer - it's best to take the advice on this site and elsewhere - and get your claim in asap.

IIDT

tori.k

I have it in my head you cant reclaim barclays personal reserve charges as everyone had bank guff that stated all its charges up front,( but someone in the know will correct me im sure)
Barclays are really petty now, i was charged £22 for being overdrawn by £1.12 for 12 hours. when i asked for some goodwill as a first offence i was told to sling my hook so i did to HSBC

TWINKLE

Sorry to hear about this itn - I am in a similar situation with my bank at the minute - my charges at times are in the region of £147.00 etc - madness! I have around £1500 going into my account each month and an £1000 overdraft limit. The bank charges keep setting me back - I am moving to another bank's basic account and when I get my salary etc transferred I will offer a payment plan to clear the overdraft. It's a nightmare though, as my salary has just gone in and has nearly been eaten up and I hope they still pay mt mortgage this week!

itn

ok just spoke to barclays, expalined i wa not happy re charges, they advised me that charges are fair as they have givne me 21 days notice, i told them i am having difficulty at the moment, and I will be looking to reclaim all these charges. I requested a statement of all charges since 2002, they advised they can only send it for last 6 years. I also asked them on procedure of changing bank accounts and paying off overdraft. They advised me to open bank account, transfer my direct debits over and pay off what i can each month on it. So much for being a premier customer, looks like a new account is due with NO overdraft facility.

I already owe money to HSBC, and Barclays overdraft.

Who can I open it with? any reccomendations.

imindebttoo

Try the Coop Cashminder - i use it - comes with Visa Electron & Online Account Management.

Does me fine!

IIDT

Tixy

Here is a list of basic bank accounts (page 4) (that don't need a credit check and don't have an overdraft) - Co-op cashminder is well thought of on here and I've heard postive things about the is the nationwide account http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

Once the new account is set up and your wages moved then as suggested set up a standing order to repay your overdraft each month. I'd suggest you write a letter with a repayment plan, tell them you are in financial difficulties and ask them to freeze interest & charges. You may need to include an income & expenditure account to show you are repaying what you can afford (and not spending on luxuries!) for them to agree to freeze interest.

natters_2

I had the same problem - went in explained the situation and that we would expect to have enough money to cover all the debt and overdraft in the next month or so and was told to cancel all my s/o and to manage my money more carefully in future - so i decided to do exactly that and also chage all my incoming aswell to Alliance & Leics - (go through topcashback and get £50 plus another £100 to boot!)

LeeSouthEast

Spend less than you earn, and/or earn more. It's the only viable long-term solution.

Not being funny, although most people take it as such. It's just the only way to prevent the situation you find yourself in now.

imindebttoo

closed wrote: »

Moving bank accounts isn't going to help.

It is worthwhile opening a new basic bank account to protect itn's income from the charges currently being levied - it will therefore be protected for priority bills such as mortgage/rent/utilities etc.

IIDT