Barclays 'Cleared Funds' handling - Is it legal?

meer53

persecuted-citizen wrote: »

So ‘rb10’ ‘Svenena’ ‘opinions4u’’meer53’ etc, You all support the debit before credit system?

That makes me wonder who you are?

Whats that supposed to mean ? Yes, i work for a bank but i'm also someone who has bank accounts and pays charges if i use someone elses money, which i'm happy to do. I'm quite pleased they'll lend it to me in the first place.

What does it matter whether the debit or credit comes first ? If you have enough money in your account it shouldn't be a problem. Exactly what system would you propose then to replace this one ? That the banks don't make any money ? Where would that leave us ? Paying cash for everything again ?

I know which system i prefer.

dunstonh

I am saying that there is a major scam in the way that the banks make money through the way they handling our money.

No there isnt.

Indeed, banks are charged for the amount of cash they hold in branches. the lower the cash, the better it is for them.

The bank is not earning on anything you pay into the branch during late opening. So, there is no benefit for them.

Just because it is standard practice with most banks to take out the debits before putting in the credits then you are saying we should accept it?

Yes we should. The banks are complying with international accountancy standards.

Either you are totally missing the point or perhaps you are batting for the bank’s side here?

The banks do many things wrong but that doesnt mean everything they do is wrong. If you are anti bank on everything then you are clearly biased and you are never going to be satisfied. Those with common sense and balanced opinions are not going to agree with your statement .

So ‘rb10’ ‘Svenena’ ‘opinions4u’’meer53’ etc, You all support the debit before credit system?

That makes me wonder who you are?

Normal members of the public who make the effort to understand why things work rather than remain ignorant.

meer53

dunstonh wrote: »

Normal members of the public who make the effort to understand why things work rather than remain ignorant.

Nicely put

Also normal people who realise that you don't get owt for nowt anymore !

opinions4u

persecuted-citizen wrote: »

Come on opinions4U I’m not saying all banks should be the same I am saying that there is a major scam in the way that the banks make money through the way they handling our money.

The word "scam" is one that is an emotional reaction to your own failure to follow the rules.

The bank tell you the rules. You understand the rules. But you still leave yourself "stuck in traffic" and get caught out. Other customers manage to avoid the problem. Why should you be an exception.

Okay if you are rich enough to have money in your accounts at all times, but certainly for me, and the majority of the working class, we work on a day-to-day basis of keeping in the black.

I'm doing okay financially at the moment. I spent many years on below average wage (yes, most bankers earn modest wages) with non-working wife and young family. It was tough going. But I made absolutely sure that every single penny was accounted for and also made absolutely sure that I complied with the terms and conditions of my bank accounts to ensure that I never paid them a penny in charges or interest.

Just because it is standard practice with most banks to take out the debits before putting in the credits then you are saying we should accept it? In the UK we are all like sheep, we have been for years, we need to lobby the authorities to change this system.

The system's fine.

a) They tell you the rules of operating their service.
b) You choose to comply or otherwise.

Either you are totally missing the point or perhaps you are batting for the bank’s side here?

I've never made any secret of the fact that I worked in banks/building societies for 20+ years. Sometime's I support the banks. Usually I encourage people to get what they can out of their bank. In other posts you will see me encouraging people to complain and advising them of ways to complain to get the desired outcome. With an absolute passion I believe that people should operate their banking relationship in a way that avoids them getting charged.

Just about every charge for a banking service is optional on the part of the customer. It's a choice. You don't have to pay. You have opted to pay either by your own negligence or your own willingness.

The things that are currently frustrating you with Barclays are a direct result of your own failure to manage your finances in a way that stays within the terms and conditions of the account.

The situation you highlight is not a scam. It is not unfair. They tell you the rules. You continue to break them.

What do you expect to happen?

persecuted-citizen

I might be ignorant of the inner workings of the banks, and I know business is business, and I agree they are working to International accountancy standards, but that’s not my point!

So you are basically saying that you think it is fair that any money paid into the bank after 3.30pm should NOT be counted towards any of the debits they are going to be taken out of the account during the following day regardless of the fact it was cash that was paid in and it shows up in your account. And if that creates a deficit in the account you agree that the bank should return all of the debits as unpaid and charge £8 for each one returned, and you agree that they should THEN at the end of the day pay your money into your account so it ends up in credit again but with loads of unpaid item bank charges?!

Regardless of the fact that this is the system I still say it is a scam.

meer53

persecuted-citizen wrote: »

I might be ignorant of the inner workings of the banks, and I know business is business, and I agree they are working to International accountancy standards, but that’s not my point!

So you are basically saying that you think it is fair that any money paid into the bank after 3.30pm should NOT be counted towards any of the debits they are going to be taken out of the account during the following day regardless of the fact it was cash that was paid in and it shows up in your account. And if that creates a deficit in the account you agree that the bank should return all of the debits as unpaid and charge £8 for each one returned, and you agree that they should THEN at the end of the day pay your money into your account so it ends up in credit again but with loads of unpaid item bank charges?!

Regardless of the fact that this is the system I still say it is a scam.

If you need it to be available before then, pay it in in time. It's your problem, not Barclays. It's not a case of whether it's "fair" or not, thats just how it works, whether you like it or not. Calling it a "scam" is ridiculous.

rb10

persecuted-citizen wrote: »

So you are basically saying that you think it is fair that any money paid into the bank after 3.30pm should NOT be counted towards any of the debits they are going to be taken out of the account during the following day regardless of the fact it was cash that was paid in and it shows up in your account. And if that creates a deficit in the account you agree that the bank should return all of the debits as unpaid and charge £8 for each one returned, and you agree that they should THEN at the end of the day pay your money into your account so it ends up in credit again but with loads of unpaid item bank charges?!

Regardless of the fact that this is the system I still say it is a scam.

I don't think that it is fair, but then nor do I think it is a scam.

When you chose to open an account with Barclays, you agreed (by accepting their T&Cs) that 3.30pm was the end of the day as far as paying in was concerned, and that anything paid in after this time should not be credited until the following working day. You also agreed that they should charge you a set amount if you do not have money in the account by 3.30pm the working day before it's due to do out. Thus, it's not a scam - as you have been made aware of exactly how the system works.

However, when I opened my account at Halifax, I agreed with them that I could pay in at any time up to 23.59 on the day the payment left the account - i.e. nearly 24 hours after the payment was made - and not be charged at all.

You'll find that some banks operate like Barclays. Other banks operate like Halifax.

You chose to open an account with Barclays. In doing so you said that you were happy for them to work in this way. If you don't like it, move.

I agree that it's not fair - Barclays have the cash, after all. But you can't moan at Barclays for it, since it's entirely down to you who you bank with.

persecuted-citizen

Okay, calling it a scam may not be correct, I suppose as opinions4u says; it is just my emotional reaction to my failure to follow the rules! I will change my description from a scam to being fleeced.

Apart from dunsonh who is a IFA, and rb10, the rest of you all seem to be in support of the fact that banks should be allowed to have a system that is engineered to prey on the vulnerable. (Rather than making money from investments, stock and shares etc from which they had to be bailed out) Oops sorry!

I really thought this forum was to bring up issues about money saving and fairness for the consumer but it seems to be a bit of a soapbox for the banks.

Well I'm off to the Halifax on Monday to see what they can offer!

jamesd

At Barclays the likely solution is to have an agreed overdraft facility in place that's sufficient to cover the transactions. You'd still probably pay overdraft interest while it's in use, perhaps including for transient deficits due to the cutoff time.

bengalknights

dunstonh wrote: »

No there isnt.

Indeed, banks are charged for the amount of cash they hold in branches. the lower the cash, the better it is for them.

Just out of curiosity how come banks are charged for holding cash and who by?