Bank Charges Killing Us - Can they do this?

GazNicki

We have banked with Barclays Bank for a very long time (join account between me and my wife).

The account was historically my Wife's before we met, and has since become out joint account with all wages going in and all bills coming out.

While I have a personal account with Natwest, and so does my wife, this is purely for pocket money. Barclays wouldn't touch me on my own many moons ago.

Anyway, the bank charges are killing us. We don't have an official overdraft. We have a £10 personal reserve followed by an additional £150 'allowance' which is charged at £22 for every 5 days in the 'allowance'.

The charges are starting to kill us, putting us deeper and deeper into the 'allowance' time and time again. Is this OK for them to do this to us?

Additionally, I used my debit card to carry out two separate transactions in Sainsbury's - a transaction <£1 and a transaction <£2. There was money in the account as these transactions were authorised.

A few days later, a letter arrives stating that each of these transactions is costing us £8 EACH. Turns out that Barclays went and took their charges out again and have now decided to charge me for the transactions.
I was under the assumption that a Debit Card worked like cash. If there was none in the account it would fail. So if the transactions were authorised, this would mean there was funds available, therefore the £8 charges are not applicable.

Am I correct? Or am I way off? Is there anything I can do? It is starting to stress us out now

The_pc_tech

A bank can if it wishes allow a transaction to proceed when made with a debit card.

opinions4u

Spending money you haven't got is expensive and how banks make a large chunk of their profits.

Spending less is the best way out of this mess.

innovate

Barclays won't be charging you anything that isn't on their publically available charges list.

You need to reduce your spending.

May be try and get a loan to pay off the unauthorised overdraft - - but that is only an option if you can repay the loan as agreed.

PollyOnAMission

Perhaps you should both transfer enough from your "pocket money" accounts to take you out of the red in your Barclays account, then make sure you spend within your means each month to avoid it happening again.

You seem pretty clued up on what the charges are, it sounds like you have money elsewhere, and the amount you're overdrawn by isn't huge. These facts suggest you have the knowledge and means to get yourselves out of the cycle

le_loup

GazNicki wrote: »

I was under the assumption that a Debit Card worked like cash. If there was none in the account it would fail.

As you now know, that is not true.
Retailers have a floor limit whereby your account is not checked. Banks have floor limits whereby your account is not checked.
You need to do what they are not doing ... check your account before you spend. It's you account, after all!

dunstonh

Bank Charges Killing Us - Can they do this?

The bank charges are only levied because you spent money you didnt have. So, if you look at the root cause, it is you that is killing you.

Additionally, I used my debit card to carry out two separate transactions in Sainsbury's - a transaction <£1 and a transaction <£2. There was money in the account as these transactions were authorised.

It may have been below the floor limit of the day. It may have been you had cleared funds at that time. They dont check balances on all transactions.

I was under the assumption that a Debit Card worked like cash. If there was none in the account it would fail. So if the transactions were authorised, this would mean there was funds available, therefore the £8 charges are not applicable.

Your assumption is incorrect. It is means to pay a debt you owe. Not an online constantly updated real time payment system. There are some limited checks on some transactions but not all.

This board has a very good section called debt free wannabee (near the top of the list of forums). It has a lot of people in there who can help those with money problems like yourself. At the moment you are blaming the bank. However, you need to stop blaming the bank and look at your own spending. That section of the board can help you understand the things you can look for in your budget that can ease your problems. You are focusing on an £8 the bank levied but what about mobile phone, pay tv, eating out, luxury items etc that also get paid and are probably more than the £8? Maybe cut down to eat pasta a couple of times a week. Less ready meals etc. The problem is your spending. The bank charge is a consequence of your lack of control on your spending. Control your spending and you wont get bank charges.

brendon

le_loup wrote: »

Banks have floor limits whereby your account is not checked.

Actually banks employ statistical models to estimate the profit they will get if they authorise a transaction. This is why some transactions will be authorised and some will be declined. (Similar to how applications are credit scored for credit cards/loans.)