BARCLAYS NEW OVERDRAFT CHARGES!! I'm off

Own_My_Own

PeacefulWaters wrote: »

What charges will Barclays reduce or remove as a part of these changes?

None. Why should they ?

PeacefulWaters

Own_My_Own wrote: »

None. Why should they ?

No more interest.

No more paid transactions fees.

Reduced maximum charges on unpaid fees.

Personal Reserve £22 fees gone.

They've reduced quite a lot. Halifax got rid of all their other charges. Santander got rid of most.

Overdrafts are expensive. But the costs are clear. Don't go overdrawn and banking is very cheap.

Own_My_Own

PeacefulWaters wrote: »

No more interest.

No more paid transactions fees.

Reduced maximum charges on unpaid fees.

Personal Reserve £22 fees gone.

They've reduced quite a lot. Halifax got rid of all their other charges. Santander got rid of most.

Overdrafts are expensive. But the costs are clear. Don't go overdrawn and banking is very cheap.

Well if you knew the answer why did you ask the question ?

YorkshireBoy

This was always going to be on the cards. And those affected can only blame the consumer groups, including this very site.

There are 4 types of bank customer:

1. Those who never use an overdraft
2. Those who use an overdraft once in a blue moon
3. Those who live in their overdrafts, but do not breach their T&Cs (ie many of those starting these Barclays threads)
4. Those who abuse their accounts with gay abandon, incurring charges left, right, and centre

Now the bank charges case was brought about to deal with the costs incurred by those in group 4. Because the banks have revenue to generate, they need to cover this reduced income. They're not going to charge group 1 customers (per debit card transaction, per DD, per SO, etc), because they would vote with their feet and move elsewhere as there will always be a bank wanting to draw in this type of customer. So their only option is to hit those in groups 2 & 3. Almost all group 2 customers will find a way around it, or accept that £5 a month isn't too much of an increase on £2.50 a month under the old rules, so the entire burden falls on group 3 customers.

And if you search my, and the other regulars, old posts from 2007/09 on here you'll see that these moves were being widely predicted.

So, the next time you think about jumping on a consumer revenge bandwagon, just take a step back and...

Be careful what you wish for!

PeacefulWaters

Own_My_Own wrote: »

Well if you knew the answer why did you ask the question ?

I was about to list them but caught the <POST> button by mistake!

The message is simple though. Bank charges are optional. Take the option to operate your account in a way that means you don't get charged.

mrobbo

Putting considerations to one side about how my money could have been managed better, or how banks could suddenly increase overdraft charges tomorrow, what banks currently offer the cheapest overdraft charges?

YorkshireBoy

mrobbo wrote: »

Putting considerations to one side about how my money could have been managed better, or how banks could suddenly increase overdraft charges tomorrow, what banks currently offer the cheapest overdraft charges?

Nationwide FlexDirect, free for a year then 50p per day.
YB/CB Current Account Direct, 9.9% EAR (but unauthorised charges are very high!)


In addition, any number of banks will give you a free overdraft facility for a few months if you switch to them. For example, I believe Halifax is 6 months. However, it's charged per day after this like Barclays is...but more expensive?


There may be others.


Of course all overdrafts are granted 'subject to status'.

mrobbo

Excellent, thanks for the reply YorkshireBoy. I have my eye on the Nationwide Flexidirect, so I'll pop in and have a chat to them in the first instance. Thanks.

FireWyrm

innovate wrote: »

2 months notice is hardly 'pulling the rug out from underneath you'. It is totally in line with the T&Cs you agreed to when you opened the account. These T&Cs also say that overdrafts can be called in at any time, even without prior notice. If you choose the ignore the T&Cs, you have to live with the consequences. Stop blaming others, assume responsibility for yourself.

One of the possible reasons for the change in the charge that you forgot to mention is that they are partly the results on pressure by consumer rights activists that complained for years that overdraft charges expressed as percentages are too difficult to understand. Well, now you have something easier to understand, and it isn't just Barclays that does overdraft charges like this. In fact, they are quite late to the party.

I appreciate, if you get used to living in your overdraft, the change is likely to come as a very rude awakening and it will be tough for some people to find the extra money. However, the sooner people can deal with the situation and get rid of their overdraft, the better. Alternatives such as zero percent credit cards, loans, second jobs, cutting down on spending will exist for many people. Gradually moving to another bank might still be an option for some since they might be able to get a zero percent overdraft for a few months.

Ah Innovate? You're barking at the wrong person. I dont bank with Barclays, having severed ties with that bunch of shysters years ago over similar issues to do with their 'reserve fee'. It doesnt mean I agree with what they have done though I do fully understand that is is within the Ts&Cs. It is going to cause a lot of serious hardship to lots of struggling people and given the effective jump in fees from simple interest to this structure, often meaning an increase of 300% plus, this is nothing but naked greed on their part. Banks are not charities, but Barclays give new meaning to the term 'usury' in my opinion.