WARNING!! Barclays - Online Overdraft Increase

garynuman

Hi all

This is a heads-up for anyone looking to increase their overdraft at Barclays. Apologies if this info is already known but I was very nearly caught-out by this shameless practice.

I currently have a £1000 overdraft on my online current account. I "live" within this overdraft which is free to use provided I don't go over it where the normal charges will occur. When I logged on recently, there was a very prominent promotional banner advertising an "immediate agreement" to an increase to my overdraft.

Trying to keep a grip of my debts, I thought that it may be a good idea to increase it by £250 just in case to avoid any charges so I applied. The maximum overdraft offered was £1500+. I received a letter a few days later confirming the change only to discover this in the terms and conditions:

"If you borrow the full amount of your overdraft and remain overdrawn by that amount for 3 months, the total charge for credit would be £55.53 (assuning interest rates and charges are not varied during the 3 months)."

My interpretation of this is that although my overdraft has been agreed and increased to £1250 (from £1000) - I will now be CHARGED if I continue to use the overdraft facility as I have become accustomed to - it is no longer a facility of my current account.


I called Barclays and their customer services person knew NOTHING about this practice but agreed that the increased overdraft IS NOW CHARGEABLE (nearly £20 per month!) Fortunately, I am still within the 14 days cooling-off period and have requested it is cancelled and original £1000 (free) overdraft reestablished.

Perversely, if you try to cancel after 14 days, you will need to pay your entire overdraft off!

I am trying to get a grip of my debts and thought the increase would mean fewer £12 overdraft charges. Another CON by the banks!

Gaz