Report Bank Charges successes and failures

justinsrival

Re: Personal Reserve Fees causing me to go into Personal reserve and creating a cycle of hardship

I am experiencing the following issue: From August 2008 to June 2015, Barclays forcefully changed my account type to put a £500 'personal reserve' (overdraft) onto my account, meaning that for every 7 days I were to go below £0 in my current account, I would incur a charge of £22 with a maximum of 5 charges a month (£110). I was never made aware of the new terms of my account, and Barclays made no effort in explaining the implications of these new charges. I was only made aware that my account had changed into this type when I called to explain I couldn't afford the strange "personal reserve" bank charges that were being applied to my account, which I had never seen before. This was some time after Barclays had already switched my account over unknowingly.

Between August 2008 and until the personal reserve fee was rebranded into "emergency borrowing", I experienced financial hardship, spending two extended periods as unemployed, while accruing personal reserve fee charges. These periods were between May 2009 - November 2009 and March 2011 and July 2011. Barclays applied charges of £22 per week for the times I had gone overdrawn, even though I had contacted and notified them that I would not be able to pay them and that I was on job seekers allowance, being paid into the very same account. They dismissed my claim by stating that I had 'voluntarily entered an agreement to use the personal reserve because I had not notified them that I didn't want to be enrolled onto the account'. They also stated that because this was a voluntary "lending agreement" that the charges were not actually 'overdraft charges' and were exempt from any banking regulations which wouldn't enable me to claim back any of these 'personal reserve fees'. To reiterate, I should have been able to cancel this product at any time according you your terms.

I was never notified that the account would switch over, nor was I notified that I would need to tell them to stop any such change from occurring. I believe this is because for an extended period of time, they didn't have recorded my correct postal address. I had called and complained about my address never appearing correctly on my statements, which they admitted, and refunded £35 of overdraft fees (before the account switch) in 2005/2006, though my address was still not listed properly and statements were being delivered to various addresses on my street. I have only been able to view all of my statements after switching to online only banking in 2014. I called and tried again to cancel this 'personal reserve' but the adviser explained that because I was already (unknowingly) using the reserve amount that I was unable to cancel. From this point I was always using my personal reserve and so was effectively blocked from removing it as I was always being taken back into the reserve amount.

The personal reserve fees were administered onto my account in such a way that I was going into my personal reserve despite paying for the fees from the previous month AND clearing the amounts that I was overdrawn. This period began a cycle of me selling various possessions (many under hire purchase agreements which were affordable before my two periods of unemployment) and eventually to getting payday loans to cover the costs. From March 2011 to June 2011, the cycle developed deeper and far more quickly. I was again claiming job seekers allowance, had called Barclays to notify them that I was unable to pay the fees, and further that the fees were perpetuating the cycle. They were being administered at different points in each month disabling me to prepare for funds to be in my account. They were able to accrue extra weeks worth of fees, despite me keeping myself out of the reserve. No matter how hard I tried, the fees were applied and took me back into the reserve. I was forced to take out payday loans to cover these costs, even though I could not afford to pay for the payday loans either. Each month, I would have to borrow more to cover the cost of the fees accumulating each month. Essentially, borrowing an extra £88 and the interest for the payday loan each month. I called to try and remove the personal reserve but was told, and I quote, that I "needed" the personal reserve otherwise my direct debits would go unpaid and would return further unpaid transaction fees as well as bank charges for not having an agreed overdraft facility. After further cycles of reserve fees and payday loans, I re-entered employment In July 2011.

Because the amounts of the payday loans were ever increasing, I was still going overdrawn despite being in full time employment. I was experiencing the same financial hardship as I was when I was unemployed. This culminated in February 2012, where I was pre-selected by Barclays to take out Barclayloan products, and I took this as an opportunity to make an attempt to consolidate payday loans, 12 month high interest loans and overdrafts so that I could break free of the cycle. I did not ask for a quote, but made aware of being pre-selected by a "pop-up" message while using the online banking function. Barclays allowed me to take out TWO loans within the same month, one of £5000 and one of £1000 which I would obviously struggle to afford thereafter. I had already been going overdrawn month after month for years before these loans were offered which other lenders would be alerted to being in financial difficulties. Eventually, I had to ask my parents to settle these loans in 2014.

I feel Barclays' lending practice has been completely irresponsible, and negligent. I made numerous calls and attempts to stop the personal reserve borrowing, but the advisors didn't allow me to. They were notified of my financial hardships and despite this, did not seek to withdraw any of the products as a responsible lender should. I was never consulted for my account change in the first place, and the terms were never explained to me, which I feel is illegal and misrepresentative of the type bank account I thought I was using. In advising me to keep the personal reserve amounts and stating that I needed them to exist has meant I have experienced extraordinarily high detrimental costs, amounting into two long term and high value loans, which again, were irresponsibly offered. Being constantly harassed with letters regarding my charges and online with pre-selected offers, I feel I have been coerced into taking out credit that I simply could never afford to repay with a review to increase the amounts of revenue earned from me.

For a £500 reserve amount I have amassed years of £88-110 per month charges and taken out two loans amounting to £6000 and countless payday loans. I have experienced extreme financial hardship, even while I was in work, and have spent years feeling huge amounts of anxiety, stress and feelings of being chased for fees by my bank. Barclays have been incredibly irresponsibly in their lending practice and took advantage of my naivity and lack of knowledge surrounding credit and loans. I made numerous attempts to cancel this product and the advisers were well versed in apparent "terms" to the service to keep me using the personal reserve product. Your terms clearly stated that I should have been able to cancel this at any time.

To action this I would like you to I would like Barclays to acknowledge that they should not have changed my account without my explicit consent to do so. Resultantly, I would like Barclays to refund all "personal reserve fees" applied to my account as I communicated many times that I was in financial hardship and they were not practicing as a responsible lender should in allowing me to remove the product. Further, I would like Barclays to repay the amounts of £5000 and £1000 related to the two Barclayloan products taken out in February 2012 in response to my spiraling debt, as a means to recompense for the spiral of debt the initial change to the personal reserve fee had caused and for their irresponsible lending practice. I would not have taken out those products had I not been coerced by your "pre-selected" offer.

I also would like Barclays to refund these amounts with interest.

I look forward to a response within 7 days of this correspondence.

A bit of a long read, but here is my claim to Barclays, sent off today with Resolver. I'm not sure if there would even consider it. But they have certainly behaved very badly around not letting me remove the personal reserve fee on many occasions, despite them clearly stating that this is a term in the agreement. Coupling that with not even knowing about the change with my address mix up and notifying them that I was unemployed is questionable to say the least!

I certainly would go back and change everything now - especially around the two barclayloans, but when financially desperate and being bombarded with lines of credit, I don't think I was solely to blame. I didn't want the *&^£$&*$ reserve!

justinsrival

Thanksor your stern reply. A little disappointed with the tone of some of the replies on here.

The advice I received was to request absolutely everything I could to be refunded as a starting point for negotiating my case. Indeed I was I never made aware of the terms, and I'm sure they will have trouble proving that I had agreed to this change. As mentioned, I have had repeated issues with my bank statements not being posted

We'll see what they say eh?

Ugguy

Lord, some people on here get rattled easily. Take a chill pill, those people.

Zarzar

After a very brief read of this site i decided to call my bank to see when i first started paying charges. I was very efficiently transferred to another team who listened to my query about being sold a bank account a long time ago with 'bits and peices' that I didn't need and that I was not aware of the charges initially, after becoming aware of a charge on my statement I had simply gone along with it as I believed it was needed for the overdraft facility. I explained that I now believe that I had been missold the account. I did not fill in any forms, I did not state an amount of money.
24 hours later received a call to say I would be reimbursed, the following day £1900 in my account.

* how much was your claim for
I didn't make a claim, I made an inquiry
* how much did you get back - £1900
* who is your bank - lloyds

[Deleted User]

This thread is for discussion of bank charges, not packaged accounts.

Well done on your success, however.:T

Lowie1965

Martin, you and your team are fantastic

Tuesday 12.30pm Rang Lloyds Bank and down graded my account from Premier to Club
12.50pm used your site and your pre formatted letter to ask for a refund of my charges from Lioyds
1.30pm had a text from Lloyds informing me that they would calling me the same day
4.00pm received a call from Lloyds and answered a few question, I was told they would investigate and contact the next day
Wednesday 5.20pm Received a call from Lloyds and after a full and detailed explanation was informed that I would be receiving £2125.67p within 3 days
Thusday 9.00am £2125.67p deposited in my account

What an unbelievable result thank you very much:beer:

[Deleted User]

This thread is for discussion of bank charges, not packaged accounts.

Well done on your success, however.:T

Karennaz

Hello
I have read about putting in for reclaiming bank charges. I have spoken to my bank and told them I in hardship and they put a stop to bank charges for a month, but I am now being charged again.....I never seem to be able to get my head above water and altho the charges are a lot less than what they used to be when you have got nothing they are still a lot
Can someone tell me Who I have to send the letter to I have used your template and gone through my bank statements so I have it all listed
Is it possible to email them to the bank or get them printed and post them I hope that someone can advice me
Best Wishes

dunstonh

Karennaz wrote: »

Hello
I have read about putting in for reclaiming bank charges. I have spoken to my bank and told them I in hardship and they put a stop to bank charges for a month, but I am now being charged again.....I never seem to be able to get my head above water and altho the charges are a lot less than what they used to be when you have got nothing they are still a lot
Can someone tell me Who I have to send the letter to I have used your template and gone through my bank statements so I have it all listed
Is it possible to email them to the bank or get them printed and post them I hope that someone can advice me
Best Wishes

The bank is under no requirement to refund any charges. They looked at your case previously and suspended charges for a period.

You do not write to the bank with a list of historic charges as that isnt how it works any more. You go back to the bank and tell them you are still in hardship. They will reassess your situation and decide if they can offer you any further help.

Karennaz

Thank you for your reply But I am a little confused
Does this mean that I do not have to send the letter telling of my circumstances and that I would like my account reviewed with the charges They do know I am going through a hard time at the moment and I have spoken to the bank on a few occasions letting them know that things have not changed
I can not see they are going to offer me a refund of there own will without asking
I did on one of the phone calls ask about charge refunds and was told by the man I was talking to that he knew nothing about it
So do I send the template letter to the bank or just leave it and wait to see if they offer the charges back to me
Best Wishes