Barclays Bank are they in Breach of the Banking Code

need_advice_2007

Hi there I was hoping for some advice as this happened to me last year. I've taken the issue to the Ombudsman but they haven't really managed to get much from Barclays...

"I had a Business overdraft with Barclays and my business has not beendoing to well, but none the less I had not used the overdraft but continued to keep it as I had an order which I was chasing. I told the bank nearly a year in advance this is why I was keeping the overdraft.
The week when I had to pay my suppliers and when I was overdrawn for the first time. I was called by a "manager" and was told it would not be renewed. They did not tell me when it would come off and I asked them to escalate the matter. To cut a long story short my overdraft was removed before I was told it was going to happen, whilst I was still overdrawn.
I did not get notification in writing and had to spend a couple of days running around borrowing money to get my account back in credit. The bank did refund the overdrawn charges but not my overdraft fee and the only gesture they would give was free banking for 6 months which is worth very little.
I was hoping for you advice to see if this can be taken any further as the Ombudsman has stated they will not take my complaint further but Barclays as a new gesture will refund 6 months of my overdraft fee. I know my account does no deal with large sums of money but it is the principle I am more
interested in."

Can anyone advise me if Barclays is in Breach and if I am entitled to compensation as it was a very stressful couple of days ...

jonesMUFCforever

IMO no you are not entitled to compensation.

Please read the terms and conditions (or ask Barclays for a copy) all overdrafts are repayable on demand.
They do not have to ask or give you any notice.

I know that sounds tough but it is the way that all banks operate overdrafts on personal and Business accounts.

What they should be telling you though is why it was taken off you.
There could be a number of reasons for this such as accounts showing you struggle year on year, some adverse information on your credit files etc etc.

Sorry if this is not the answer you were hoping for.

inmypocketnottheirs

Banks like to lend you an umbrella in the middle of a heat wave. Then when there is a chance of rain in 6 weeks time, take it back. QED

jonesMUFCforever

inmypocketnottheirs wrote: »

Banks like to lend you an umbrella in the middle of a heat wave. Then when there is a chance of rain in 6 weeks time, take it back. QED

They also have a duty of care to their shareholders not to throw good money after bad.

Dylanwing

Yes, never mind about ruining peoples lives, making them homeless, causing no end of stress, as long as the shareholders are OK!
ejones, I know where you are coming from, and do see your point, but they should also have a duty of care to Society as a whole, and to treat customers with fairly and respectfully. Sorry, I'm old-fashioned and detest the modern trend for short-termism and profits at all cost, and strongly believe that the Banks should be properly regulated.

OP - My sympathies, if my limit was unilaterally withdrawn I dread to think what would happen, and I'm sure that many readers here are in the same position.

jonesMUFCforever

Dylanwing wrote: »

Yes, never mind about ruining peoples lives, making them homeless, causing no end of stress, as long as the shareholders are OK!
ejones, I know where you are coming from, and do see your point, but they should also have a duty of care to Society as a whole, and to treat customers with fairly and respectfully. Sorry, I'm old-fashioned and detest the modern trend for short-termism and profits at all cost, and strongly believe that the Banks should be properly regulated.

OP - My sympathies, if my limit was unilaterally withdrawn I dread to think what would happen, and I'm sure that many readers here are in the same position.

Banks are businesses - pure and simple.

Duty of care to society should come from Social services.

If you are afraid that your o/d may be withdrawn - now is the time to implement plan B - get something in place now (even if not required) in case.

Dylanwing

ejones and almac - What a very sad view of society and social responsibility! I only want Banks to act responsibly and not leave people high and dry without warning. T&C's may make overdrafts repayable on demand, but what is so unreasonable about converting them to loans, where appropriate, so that they can be repaid over a manageable period of time? Or is that really too unreasonable in todays greedy, selfish society?

Oh and regarding the 'social services' comment, what 'social services'? I work so I am eligible for sweet FA, and in any case, social housing was destroyed in Thatchers day!

dunstonh

Yes, never mind about ruining peoples lives, making them homeless, causing no end of stress, as long as the shareholders are OK!

The shareholders are people who invest their money to pay for their retirement and other things. Making bad decisions could leave the shareholders homeless and no end of stress.

rubuhoeikanaika

dunstonh wrote: »

The shareholders are people who invest their money to pay for their retirement and other things. Making bad decisions could leave the shareholders homeless and no end of stress.

Agreed, if you have a pension then you are more than likely a shareholder of some sort.

rubuhoe

regularsaver1

Anyone can be a shareholder rubuhoe

butch_dingle_2

ejones999 wrote: »

Banks are businesses - pure and simple.

Duty of care to society should come from Social services.

yes, of course in an ideal world this would make perfect sense. Of course we are now all totally dependant on banks these days, so much more than we were 25 years ago.

IF they want us all to go back to being in control of our own destinies, getting paid in cash, paying our bills at the post office, etc then that is fine. But the banks at the moment need to realise that as a result of having a bigger influence in our everyday lives, they also have a bigger degree of social responsibility. you cant have one without the other.