Barclays - Strange letter received and puzzled balance

tescomilk

(I have a 2nd Bank Account with Barclays - its a simple account used for occasional payments outside out household etc.)

Last Thursday 2nd June I needed to pay a bill with my debit card. The amount was for £18.52. I checked my available balance £0.28 and so paid in the £18.52 in cash over the counter in branch. I then went outside to the ATM and the available balance was £18.80. So far so good.

I called the company and paid the £18.52, the payment left my account yesterday (6th June).

Today I have received a rather puzzling 2-page letter from Barclays (see below). I also have just checked my balance at the same ATM. My current balance is £0.28 but my available balance is -£18.52 :mad:

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Letter from Barclays

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Dear Mrs Tescomilk,

Guaranteed payments on your account

The following transaction have been received today for payment to your account.

Connect Transcation: ********************* for £18.52

As these transactions are guaranteed, we've agreed to pay them even though there were insufficient available cleared funds in your account*

Please bear in mind that sufficient available cleared funds* need to be in your account to cover payments when they are requested. This will help you to avoid being charged in future. We cannot include any money paid in to your account on the day the payment is made.

Please always check your online or paper statements. They may notify you about charges, interest, and may give you other important information.

Escalating debt can lead to financial difficulty. If you feel this may apply to you ...please contact CBA on 0800...blabla.

Yours Sincerely

* Available cleared funds are the difference between your cleared balance and your account limit.

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Now I don't understand why Barclays have wrote to me to lecture me? when they haven't charged me. But more importantly, I did check my Available Cleared Funds at the ATM after I visited the branch and before I called to pay the bill. If there wasn't cleared available funds available my card would have been rejected on the telephone as it requires full authorisation. Why does the letter say they cannot include any same day payments before I called, this is ridiculous.

But what I am really puzzled about is why my current available balance is -£18.52.

Can anyone good at maths please explain this for me?

pmduk

The amount you paid in isn't being regarded as cleared yet, presumably because you only paid it in on the day of the transaction. Their highlighted sentence refers to this.

Lokolo

They most probably have a fairs fee policy where you aren't charged for under £20 or something, no idea you'll have to read T&Cs of your account. Or they will charge you and you haven't received a letter yet.

As I understand the letter, the money needs to be cleared, so in the balance amount, before you can pay off it without going overdrawn, hence the letter and the bold comment saying about money being paid in on the same day, as it hasn't cleared yet.

tescomilk

pmduk wrote: »

The amount you paid in isn't being regarded as cleared yet, presumably because you only paid it in on the day of the transaction. Their highlighted sentence refers to this.

Thanks - I actually highlighted that myself.

But how are the cash funds not regarded as cleared? When I checked the ATM outside it had the updated AVAILABLE BALANCE. So in theory I could have withdrew the cash from the ATM.

Also if I pay cash over the counter during the morning, then how long must I wait until I can use my debit card to make a payment?
...a day ...a week ...or until Barclays slow systems update?

Its madness :mad:

Lokolo

It will be a day, the transactions are likely to update overnight, which is most probably how the Barclays system works and why they say you cannot pay with cash deposited the same day.

Why cash funds aren't regarded as cleared who knows, as above, it's most probably just their system and how it works.

tescomilk

Lokolo wrote: »

It will be a day, the transactions are likely to update overnight, which is most probably how the Barclays system works and why they say you cannot pay with cash deposited the same day.

Why cash funds aren't regarded as cleared who knows, as above, it's most probably just their system and how it works.

Thanks Lokolo

Although I don't remember anyone at Barclays (or written anywhere) telling me that if I deposit cash in to my account over the counter, then I cannot use my debit card until the next day!!!! :eek:

I am glad this Barclays account is just a basic 2nd Account - I don't know how people can deal with such a slow system in this day and age

tescomilk

update:

http://ask.barclays.co.uk/help/day2day_banking/cashcardclearing
just found this on the terms and conditions:

The chart below will help you understand when cash and cheques paid into your account become available for withdrawal although this does not necessarily mean the cheque has been paid by the bank on which it is drawn. The chart also shows when you can be certain that the funds will not be reclaimed from your account as a result of the cheque being returned unpaid. (See the reference to unpaid cheques below.)

Cash Paid in Barclays Branch ---> Available: Immediately
---> Certainty of Funds: Immediately

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So basically I can withdraw the funds from a cash machine, but not use my Barclays Debit Card to spend with it or I will get a 2 page lecture?

And still some 24 Hours after payment my available balance is -£18.52!

Does anyone else think I need to give Barclays a call i'm confused?

paulmcerlean

You will have had more than a two page lecture - expect this to have hit your internal rating with the bank and any future lending you may want...

DrSyn

With banks as with some other finacial companies the more consfusing they can make their terms and conditions, the easier for them to say you are either in the wrong or own them this amount of money. Otherwise why not explain things in clear English. It also helps the lawyers of course!

Careful_ly

I think that what has happened is that when you made the payment the funds were reserved, then when they were actually taken it was not the reserved funds, thus making you technically overdrawn.
The reserve drops off after x days, then you will show as not
overdrawn, and when you have your statement there will never be a period of debit balance on it.

HTH

pmduk

I suspect this is a standard letter though I agree it's a little strange. why not go in the bank and ask? I'd say phone though it's so rare to get someone you can understand on Barclays phone banking, although they try to be helpful.