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

lxworld

Thank you for your continued support my petition at Change.org. More signatures are required please

http://www.change.org/en-GB/petitions/ashok-vaswani-stop-charging-these-crippling-overdraft-fees

Violist_2

I am disgusted by Barclays new overdraft charges. I use their overdraft at present on a few days per month [on 2 different accounts] as I know that the interest rate is reasonably fair . I do not HAVE to do this. It is just convenient. If I used this facility under the new "daily rate" terms I will have to check my balance every day, calculate how much I would owe and then possibly have to move money around. This would be very inconvenient. From now on I shall stay in credit and hence not pay Barclays any interest. I will also [at the earliest convenience] move my bank accounts elsewhere and probably my children will as well. I think that they are pulling the wool over people's eyes. The terms may seem transparent but I'm sure that few people will pay less and in fact many people well pay a lot more.
I hope that Martin will cover this subject on TV.

JuicyJesus

Violist wrote: »

If I used this facility under the new "daily rate" terms I will have to check my balance every day, calculate how much I would owe and then possibly have to move money around. This would be very inconvenient. From now on I shall stay in credit and hence not pay Barclays any interest.

So in other words, the charges have prompted you to manage your money more closely in order to save you money overall.

How terrible.

lxworld

Just to remind Barclays current account or "basic account" customers as Retail and Banking CEO Ashok Vaswani chose to refer to us in a letter to British Prime Minister David Cameron, if you are using more than £15 of your agreed overdraft, you are now paying between 75p and £3 per day, (depending on the size of your overdraft.

To sign my petition and express your disgust with Barclays, please visit http://www.change.org/en-GB/petitions/ashok-vaswani-stop-charging-these-crippling-overdraft-fees

innovate

lxworld wrote: »

Just to remind Barclays current account or "basic account" customers as Retail and Banking CEO Ashok Vaswani chose to refer to us in a letter to British Prime Minister David Cameron

In actual fact, both the letters you have referenced in your petition refer you Barclays' dedicated Financial Assistance Team on 0333 202 7412. What did they say when you called them?

https://www.dropbox.com/s/xel64fqqn41aey9/Barclays_Amy%20Litchfield_Support%20Case%20Manager_23_4_14_web.pdf

https://www.dropbox.com/s/ilbuayedelnoy0m/Ashok%20Vaswani%27s%20Letter%20to%20David%20Cameron_web.pdf

Violist_2

JuicyJesus wrote: »

So in other words, the charges have prompted you to manage your money more closely in order to save you money overall.
How terrible.

Apologies to JuicyJesus, my post was too brief and not clear.
My complaint against Barclays is really on behalf of other people [friends and relatives] who are in a more difficult financial position than myself. [although my own finances are far more complicated than I wish to go into here]!!
The new charges are most unfair. Although they appear clear I believe Barclays are pulling the wool over people's eyes.As the charges are banded there is no point in being overdrawn [for example] by a £1000. One might as well be overdrawn by £1999.99 and pay the same charge per day. This could encourage people to go further into debt. Barclays are certainly not doing anybody [except themselves] any favours.

BillJones

Violist wrote: »

The new charges are most unfair. Although they appear clear I believe Barclays are pulling the wool over people's eyes.

Don't be silly. They are clearly explained.

Overdrafts are not there for long-term borrowing because, as you've seen, charges can be increased, or banks can even demand that the money be repaid in its entirety.

Anyone who's stuck in their overdraft is living beyond their means, and needs to take a careful look at their finances.

innovate

Violist wrote: »

Barclays are certainly not doing anybody [except themselves] any favours.

Your first post suggested they are in fact doing you a favour as the new charging structure prompted you to save money overall. So there's one Barclays customer already who benefits, and I reckon there are many more in similar situations as you are. You might further benefit from the scrapping of the multiple unpaid transaction fees.

Violist wrote: »

My complaint against Barclays is really on behalf of other people [friends and relatives] who are in a more difficult financial position than myself.

Who knows, perhaps it is a wake-up call for them, too? You realise that it has always been the case that overdrafts can be recalled in full at any point in time - just one reason why permanently living in an overdraft is not a good idea.

Violist wrote: »

One might as well be overdrawn by £1999.99 and pay the same charge per day

Here's a good alternative: behave like the adult that you are when you are eligible for an overdraft, stop blaming others for your problems. Assume responsibility for your own affairs, don't live beyond your means.

Finally, if you wish, you can try and find another current account provider. This option is open to everybody.

Herbalus

BillJones wrote: »

Don't be silly. They are clearly explained.

Although the fees are clearly explained, one of the issues with this new fee structure is that it is more difficult to compare with other banks. If you ask the average person on the street to compare 50p/day or 18.9% APR, they'll most likely not know.

That's another obstacle to overcome for those who want to switch banks. A daily fee or %APR will be cheaper depending on how long someone is overdrawn and by how much.

innovate

I thought most banks have moved to stating daily amounts rather than APRs since people had complained they can't understand APRs?