Barclays and Lack of Competition

michael1983l

Hi there,

As some of you may have read, I have struggled to open an account with Barclays recently and eventually managed to yesterday, but I found it very difficult to get an appointment to see somebody to do so.

As we are all aware, as undischarged bankrupts, barclays is the only standard bank account being offered to us.

Now I have been mulling over the idea, should the government monopolies commission be investigating the banking sector in regards to this as Barclays is effectively under no competition in this area of their business. In my case having to wait 3 weeks for an appontment, and getting offered appointments only on days that was inconvenient despite offering to go to any branch in the area, I would have of course just chose another bank had I had the option to.

Who raises complaints with the monopolies commission and if consumers can raise a complaint direct, is it worth me doing so?

michael1983l

Scratch that, I have just found the competitions and market authority website and have filled out a report to highlight the lack of competition in this area. I won't hear anything back from them though so I will not know if they will look into it or not unless I hear a public report into an investigation.

woodformoretrees

I guess if they charged for the account it might be an issue, but it's a free service - and you don't really get many of those these days.
I phoned up one evening and got an appointment for 24/48 hours later. I guess my branch is a bit quieter than yours.

egrescrimp

When I went to my local branch on the off chance, they offered to open the account there and then but I didn't have the required paperwork.

I'd be surprised if any other banks start allowing bankrupts, they make very little money from us and they are a business after all. There are some building societies that will take on bankrupts and give them full online banking, one of them is the cumberland (they do freeze the account though until they hear from the OR).

michael1983l

I appreciate what has been said above and agree that initially the banks will make little profit from a Bankrupt. However if they look beyond the first year and once that person starts to build a new financial future there is money to be made. Plus there is cash in selling premium accounts and insurance. So there is a viable business.

As for the lack of competition, there just isn't any and I believe by the terms of the competition laws in this country, the banks fall short of these. But my opinion doesn't count much. However if the form I sent in helps to get other banks open to future bankrupts, I will be a happy man.

egrescrimp

It may help, but I doubt it! with their being building societies willing to give accounts to bankrupts then there technically is some competition.

Good luck with what you are trying todo

tomtontom

You do realise that Barclays could respond to such a complaint by withdrawing their services to BRs also? Then you'll be left with no options.

michael1983l

tomtontom wrote: »

You do realise that Barclays could respond to such a complaint by withdrawing their services to BRs also? Then you'll be left with no options.

I doubt that the competitions and markets authority's response to the lack of competition to a product being offered will be to recommend having the product withdrawn altogether. It is very unlikely that Barclays would withdraw the product because somebody has complained that nobody else supplies that product other than Barclays.

lilybankrupt

Sadly I don't think this is a competitive issue - no business wants to offer a product that doesn't make them money. I suspect that the only reason Barclays carries on offering the account is because they are the last bank standing, and it's a bit like closing a branch in a village - if you're the last one left the PR risks are much higher.

It's more an issue of financial inclusion, and I think the government could do more to force banks (or the post office) to offer basic accounts with online access and a debit card. These are pretty much essential these days, with even benefits being paid into an account. It's a bit like utilities - they may be businesses but they are also suppliers of basic necessities and so should be compelled to offer accounts, albeit basic, to all.

tomtontom

michael1983l wrote: »

I doubt that the competitions and markets authority's response to the lack of competition to a product being offered will be to recommend having the product withdrawn altogether. It is very unlikely that Barclays would withdraw the product because somebody has complained that nobody else supplies that product other than Barclays.

I did not suggest that the CMA would withdraw the product but that Barclays would. Why would they continue to offer a product that they are getting hassle from the regulator about, especially one that makes them no money? Be careful what you wish for!

michael1983l

tomtontom wrote: »

I did not suggest that the CMA would withdraw the product but that Barclays would. Why would they continue to offer a product that they are getting hassle from the regulator about, especially one that makes them no money? Be careful what you wish for!

The regulator will not hassel them if it is an invalid claim. If it is a valid claim, I suspect the regulator will be hasselling the banks who do not offer the facility rather than Barclays themselves. Barclays should be congratulated for continuing to do so.

As to you lilybankrupt, I suspect you are right and it did pass my mind when I was thinking about writing the complaint.

Wherever the responsibility lies, I believe that something should be done to make the banks more inclusive of Bankrupts. Access to credit is one thing, but access to banking is a necessity today.