Barclays removing overdraft limit

EricSY

Deleted_User said:

EricSY said:

I banked with them since 1975, I have managed my account over the years with no outstanding debts or missed payments, just never used the overdraft facility, and I have a very high credit score (999 out of 999 on Experian, 974 out of 1000 on Equifax). I recived the letter today and I called to ask if I can keep my overdraft facility but the call handler said no, he refused to call his supervisor or escalate my complaint! He said I can appeal the decision to withdraw my overdraft facility but I have to provide details of my other bank accounts, if any, and proof of sufficient additional income to the bank to support my appeal. Obviously to have enough funds to be in credit for decades is not enough for Barclays.
I think the call handler was trying to collect other financial information on me - just banking with Barclays responsibly e.g. good past record, always remain in credit, never missed a loan payment etc etc is no longer sufficient.

You don't have a credit score in the UK, the gimmick number you see is only every seen by you, it is never a factor in lending.

Never using the OD is a good reason to remove it as it prevents you getting into debt. Them wanting to see proof it is affordable is responsible banking which they are required to do by the FCA

Farfetch, that is an interesting take. The way I see it is I opened the account with an agreed overdraft limit as a service, it should not be taken away without discussion. Besides, I understand using that service is a choice, not a requirement, the 'car analogy' would be a good one, should the manufacturer take away the anti-lock brakes if you haven't activiated them for years?

Marchitiello

I have quite a large overdraft limit on my Barclays Premier account. I do not really use it per se but as I have most of my cash in other accounts paying interests, I only have few £ left in the account from day to day so when the mortgage DD come out of it I may get the notification that the account is overdrawn and cover it via fast transfer almost immediately, which does not even cause the account to record as overdrawn for that day, but my understanding is that if I did not have that allowance, the DD would have bounced in The first place, so whilst there may not be a records of days in which I have actually used the OD, I am effectively making use of it, and would be extremely annoyed if it was removed.

born_again

EricSY said:

Farfetch, that is an interesting take. The way I see it is I opened the account with an agreed overdraft limit as a service, it should not be taken away without discussion. Besides, I understand using that service is a choice, not a requirement, the 'car analogy' would be a good one, should the manufacturer take away the anti-lock brakes if you haven't activiated them for years?

If you read the T/C you will see that they have the right to withdraw the O/D at any time. Non use of a O/D these days is very good grounds to remove it. As clearly it is a expensive service you are not using.

If you want to keep it on the grounds of "Emergencies" Then please explore Credit Cards as their interest rate is cheaper than O/D's

EricSY

born_again said:

EricSY said:

Farfetch, that is an interesting take. The way I see it is I opened the account with an agreed overdraft limit as a service, it should not be taken away without discussion. Besides, I understand using that service is a choice, not a requirement, the 'car analogy' would be a good one, should the manufacturer take away the anti-lock brakes if you haven't activiated them for years?

If you read the T/C you will see that they have the right to withdraw the O/D at any time. Non use of a O/D these days is very good grounds to remove it. As clearly it is a expensive service you are not using.

If you want to keep it on the grounds of "Emergencies" Then please explore Credit Cards as their interest rate is cheaper than O/D's

Yes, you have a very good point. I just looked up the interest rate, 35%+. I was in branch today they offered me a loan @3.@3.2.1_Zero
I really can't understand how these banks work.

powerful_Rogue

EricSY said:

born_again said:

EricSY said:

Farfetch, that is an interesting take. The way I see it is I opened the account with an agreed overdraft limit as a service, it should not be taken away without discussion. Besides, I understand using that service is a choice, not a requirement, the 'car analogy' would be a good one, should the manufacturer take away the anti-lock brakes if you haven't activiated them for years?

If you read the T/C you will see that they have the right to withdraw the O/D at any time. Non use of a O/D these days is very good grounds to remove it. As clearly it is a expensive service you are not using.

If you want to keep it on the grounds of "Emergencies" Then please explore Credit Cards as their interest rate is cheaper than O/D's

Yes, you have a very good point. I just looked up the interest rate, 35%+. I was in branch today they offered me a loan @3.@3.2.1_Zero
I really can't understand how these banks work.

An overdraft is meant to be very short term, a buffer if you will. A loan isn't.

adamp87

I know everyone's case is different but I find it bizzare people can't see why banks reduce overdraft limits when they go unused, particuarly for a long time. I've read comments elsehwere of having very high overdrafts for decades with Barclays and very upset that despite unused, they demanded to keep it.

If I have a 5k overdraft say, that's unused, that's a potential 5k that can be suddenly used at any time which is a negative & liability for the bank. If it's not been used in years then there's an argument for why have it in the first place? Or at least it can be reduced to prevent liabilites.

People can always request again or alternatively have a Credit Card for emergencies.

GideonS

EricSY said:

I banked with them since 1975, I have managed my account over the years with no outstanding debts or missed payments, just never used the overdraft facility, and I have a very high credit score (999 out of 999 on Experian, 974 out of 1000 on Equifax). I recived the letter today and I called to ask if I can keep my overdraft facility but the call handler said no, he refused to call his supervisor or escalate my complaint! He said I can appeal the decision to withdraw my overdraft facility but I have to provide details of my other bank accounts, if any, and proof of sufficient additional income to the bank to support my appeal. Obviously to have enough funds to be in credit for decades is not enough for Barclays.
I think the call handler was trying to collect other financial information on me - just banking with Barclays responsibly e.g. good past record, always remain in credit, never missed a loan payment etc etc is no longer sufficient.

Exactly same for me. Been exemplary customer. I haven't need overdraft in last 12 months but I have probably once or twice in 30 years - typically when payments of salary have changed etc. For me it's there for safety, to avoid excessive charges, not as a loan. I'm very upset I'm being told I now have to appeal and am considering finally moving my account    

adamp87

GideonS said:

EricSY said:

I banked with them since 1975, I have managed my account over the years with no outstanding debts or missed payments, just never used the overdraft facility, and I have a very high credit score (999 out of 999 on Experian, 974 out of 1000 on Equifax). I recived the letter today and I called to ask if I can keep my overdraft facility but the call handler said no, he refused to call his supervisor or escalate my complaint! He said I can appeal the decision to withdraw my overdraft facility but I have to provide details of my other bank accounts, if any, and proof of sufficient additional income to the bank to support my appeal. Obviously to have enough funds to be in credit for decades is not enough for Barclays.
I think the call handler was trying to collect other financial information on me - just banking with Barclays responsibly e.g. good past record, always remain in credit, never missed a loan payment etc etc is no longer sufficient.

Exactly same for me. Been exemplary customer. I haven't need overdraft in last 12 months but I have probably once or twice in 30 years - typically when payments of salary have changed etc. For me it's there for safety, to avoid excessive charges, not as a loan. I'm very upset I'm being told I now have to appeal and am considering finally moving my account    

But if you’ve used it once or twice in 30 years then the argument is I’d say you don’t need it.

It’s evidently an unnecessary potential line of credit for the bank to have. As you’ve noted you can always look elsewhere for a new one. 

prowla

Barclays are a weird bank - I've had an account since the 1980s but it's not my main one.

They recently sent me the note about removing my overdraft limit, but I hadn't used it at least this century, so no problem.

They also refuse me credit if I ever apply at a retailer (eg. Apple Store).

EricSY

prowla said:

Barclays are a weird bank - I've had an account since the 1980s but it's not my main one.

They recently sent me the note about removing my overdraft limit, but I hadn't used it at least this century, so no problem.

They also refuse me credit if I ever apply at a retailer (eg. Apple Store).

Same here, I have issues with Barclays credit too. I have not been overdrawn for decades, nor have I used their overdraft facilities, I think I have been an exemplary customer, but if the interest-free purchase I want to make involves Barclays as the provider of credit I get declined and they refused to say why.