barclays 500 euro service

John46

I went to my Barclays branch and asked if I could deposit a 500 euro note into my current account. Yes, said the assistant. She confirmed the sterling exchange rate, and after several minutes pressing buttons, she announced the transaction was complete, and gave me 2 receipts. One to confirm the exchange of 500 Eu to £360.78 and one to confirm that £360.78 had been deposited into my current account.
As I turned to leave, another member of staff approached me and said that Barclays don't accept 500 Eu notes - it is not allowed. I said, well you have just accepted it, the transaction is complete. A text to my phone confirmed the money was in my account.
The bank later called me and said that their rules forbade them to accept 500 Eu notes so the transaction would be reversed and the note returned to me.
Can a bank just reverse a transaction like this? Not such a big deal, but rather a nuisance.

Flobberchops

I can confirm it's Barclays policy not to accept 500 Euro notes. The cashier really should have known this, I suspect she's probably receiving some "feedback" as a result of this error.

As for whether they can do this... well, they are, so unless you want to escalate this as a complaint it's probably safe to assume they're within their rights. The fact that they're insisting on it makes me suspect that there's probably an internal foreign currency procedure that means they actually *can't* take the note, even as an exception and as a result of staff error. Though, there'd be nothing stopping you from claiming distress and inconvenience as a result of this, and possibly receiving a financial gesture of goodwill.

eDicky

At the mid-market rate your €500 note is currently worth £390. You can probably get something closer to this elsewhere, and then bank the pounds, rather than trying to insist with Barclays and perhaps making it worse for the cashier who made the mistake. (Personally, I would hang on to the €500 note.)

robin58

Perhaps Barclays will not except the note as in Europe it's the crooks choice for moving proceeds by paper money.

Perhaps it has something to do with money laundering law/policy.

Changing that note for you could cost them a large fine for money laundering.

skid112

you won't find very many if any places in the UK willing to accept them. Money exchange offices banned them in 2010. You may have better luck on mainland Europe but not in Spain, where the main banks don't accept them either as they tend to be tracked by Spanish police for money-laundering purposes

mgdavid

I'd happily give you £360 for it .

eDicky

skid112 wrote: »

Money exchange offices banned them in 2010.

It was the government that banned exchange bureaux from selling them in 2010, but they are (I believe) still allowed to buy them. The fear of counterfeit bills, rather than the money laundering aspect, is what makes them hard to use in many eurozone countries. They are readily accepted in Germany and Italy, as well as further afield.

jonesMUFCforever

AFAIK no UK bank will purchase any 500 euro notes.

7sefton

Complain. You're bound to get around £50 in compensation for the staff error and subsequent inconvenience/wasted time.

Ballard

7sefton wrote: »

Complain. You're bound to get around £50 in compensation for the staff error and subsequent inconvenience/wasted time.

They may well get some compensation but there was no inconvenience or wasted time as they went to the branch to enquire, were incorrectly told that there wasn't a problem but were informed of the error before they left the branch.