MSE News: Barclays to revamp current account fees – will you be better off?

xplanet2112

I am too going to lose out on these new charges and to make matters worse is that recently I have been paying off my credit card i.e. £600 this month alone to go from 1550 to 950 and it's interest free until September! I feel like I have wasted that £600 and other big payments to that card when the real enemy was my overdraft. I only paid £4.66 interest on last months' overdraft use but using the new charges I would be paying £18.75 at least!

However I realise that snowballing my payments will be a big help, thanks to the poster who linked to that site. Although I am only in debt with my overdraft and credit card to the tune of £1750, and this is my only debt, I want to get rid of this a fast as I can.

Although it's not nice and we don't like these new charges, I think maybe we should stick it to them where it hurts the most and pay off our debts!! That way they can whistle for their extra £15 to £20 a month extra off me!

WizWard

Wonga may charge more than Barclays for their borrowing but at least they disclose the true APR% interest rate that they charge their customers.


Barclays disguise their upcoming overdraft interest costs as "A simple daily rate" and fail to disclose their true crippling expensive (for a mainstream bank) APR interest cost.


Therefore please be informed that the APR interest rate that Barclays will be charging their customers from June on an overdraft will rise from typically less than 20% to:-


Overdraft Bal. Interest charged True APR%

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£16 £273.75 1711.0%
£999 £273.75 27.4%
£1001 £547.50 54.7%
£1999 £547.50 27.4%
£2001 £1095.00 54.7%
£9999 £1095.00 10.95%


Borrower beware!

BillJones

WizWard wrote: »

Therefore please be informed that the APR interest rate that Barclays will be charging their customers from June on an overdraft will rise from typically less than 20%

There's a lesson in there somewhere, isn't there?

Overdrafts, repayable on demand, very expensive, getting more expensive, completely unnecessary. What to do?..

Herbalus

WizWard wrote: »

Wonga may charge more than Barclays for their borrowing but at least they disclose the true APR% interest rate that they charge their customers.

Borrower beware!

There was a court case in 2012 which means that banks are 'clarifying' their fees for overdrafts. Apparently 20% APR is too difficult to understand, hence the new daily fees in pounds and pence that people can understand.

I'm not sure that you can equate respectability to charges though. Would Wonga be responsible or irresponsible if they charged 1 million % APR? No. It just makes them expensive.

If you don't like their charges then don't use the overdraft, or leave to another provider.

YorkshireBoy

Herbalus wrote: »

There was a court case in 2012 which means that banks are 'clarifying' their fees for overdrafts. Apparently 20% APR is too difficult to understand, hence the new daily fees in pounds and pence that people can understand.

Unless there's been another one since(?), I believe the court case was way back in 2009. Time flies!

planteria

i have a £1k0%OD on my account. i hope that isn't changing:think:

tides

planteria wrote: »

i have a £1k 0% OD on my account. i hope that isn't changing:think:

hopefully mine's only £300 interest free but it's enough for me.

planteria

i've just had confirmation that my Barclays Overdraft will be moving from 'Interest Free' to 'Fee Free'.

flammable999

This is going to affect me a fair bit too much like with plenty of others.

I'll tell you what I do find DISGUSTING. I have just had confirmation from a Barclays employee that the daily fees include weekends.

So tell me this. How on earth is it fair that when we are waiting for all manners of payments to clear IN to our account, weekends are not classed as working days yet when they are taking money OUT of our accounts, they are allowed to hit us at the wekeends too.

Veiled robbery if you ask me. Not happy one bit.

kateg1982

I'm a bit confused .. I currently have an interest free overdraft, but in the box at the side of my letter it says the changes could cost me at least £10 a month more? :S