Barclays Removing overdraft

Robintones

eskbanker said:

Robintones said:
An overdraft facility is not just based on income, both assets, track history and credit rating are also important.

Decisions on providing overdraft facilities are based on whatever the lender decides them to be (subject to compliance with legislation and regulations)!

Robintones said:
So far, the denizens of the MSE Forum seem to be pro-Barclays, which I am surprised by. 

I don't see any evidence of anyone being pro-Barclays as such?  There's no need for anyone to 'take sides', and challenging a poster's opinions and preconceptions doesn't signify alignment with the institution concerned....

I stand corrected. Sorry.

Robintones

Zanderman said:

Robintones said:

Zanderman said:

Robintones said:

eskbanker said:

Robintones said:

eskbanker said:

Robintones said:

and currently, I have overdrafts which I can use. Why should I have them taken away for the convenience of Barclays?

Because it's entirely their decision about whether to lend you money or not, and overdraft terms always make it clear that these are a privilege rather than a right and can be withdrawn at any time - this can happen even if they're in use, but if, by your own admission, you've had one for nearly fifty years and never used it then it's less surprising that they take the view that it's unlikely to be needed.

I do take the point that it seems inconsistent that they offer a substantial loan instead though....

When you say you have overdrafts (plural), can't you use your non-Barclays one(s) if push came to shove?

You are right. I will move from them, just wondered if they were doing this to other older customers.

Are you under the impression that they're basing their decision on your age (as opposed to income, etc), and if so, based on what?

They had a script which they could not deviate from. It was based around income solely. Once you retire, you can change your income by managing how much you drawdown, which is a choice dependent upon activity and mostly tax considerations. So I would say that not understanding this stage of life is a factor. Obviously, people can retire at any age, but pension drawdown is only available after 55.

Actually I would suspect (I don't know, so happy to be corrected) that most people when they retire are not in drawdown with therefore variable income, certainly not traditionally. Pensions traditionally are a fixed sum, index-linked. Either though being DB or an annuity from DC.

So maybe the situation you're describing of poor comprehension relates simply to variable income - which can be at any age, not to pensions.  You don't need to be retired to have a variable income, and a variable income isn't more likely in retirement.

If so it may be incorrect to attribute this to 'stage of life' misunderstanding, more a variable income misunderstanding. Which seems more likely to me.

As others have said I'm not at all sure I understand your issue over the withdrawal of the overdraft facility you never ever used, but clearly your mileage is different to mine!   

Overdrafts are a useful facility and tool in money management which cost the supplier. The first £500 is FOC so why would I want to give free credit up? Barclay's process for removing overdrafts seems heavy-handed and inept. An overdraft facility is not just based on income, both assets, track history and credit rating are also important. I started this to find out if others had been similarly treated. So far, the denizens of the MSE Forum seem to be pro-Barclays, which I am surprised by. 

Who has been 'pro Barclays'?  My comments have been about your interpretation of what you've been told by your bank, which happens to be Barclays.
A response to your comments.  Not any defence of Barclays as such. 
You may well get the same sort of experience with many banks. 
As for Barclays have a read of my comments about them in the switching offer thread - you'll see I'm hardly 'pro Barclays'.  Quite the opposite!! 

I stand corrected. Sorry.

eskbanker

Robintones said:

eskbanker said:

Robintones said:
Luckily, there are other banks out there who have seen that customer care is what they are about.

Out of curiosity, which ones are you referring to, and how much direct experience of them have you had?  Pretty much all of them come in for stick on here and the likes of TrustPilot, although that's not to say that they're all of comparable standard, and much is subjective according to requirements and expectations....

I have never looked outside of Barclays, as they have always apologised when they have erred. But now I have all the cards, and time on my hands I will be investigating them all. Have you any suggestions?

It was you that was asserting that some banks are all about customer care, so I was assuming that you had something to back that up (my personal view remains that there's not much between them).

For what it's worth, after a CMA investigation, there has been an independent bi-annual customer service survey conducted, intended to add some objectivity to the debate, but Barclays scores relatively highly versus its high street competitors:



https://www.ipsos.com/en-uk/personal-banking-service-quality-great-britain-august-2023

Robintones

Descrabled said:

I concur with your feelings. We are in the process of moving all our accounts from Barclays. The final ISAs will transfer in February when they mature. We don't need to use a bank that doesn't care about its customers.

I assume you have looked at other banks? Which one have you chosen? The Barclays 5.25% fixed ISA looks enticing!

GeoffTF

Robintones said:

Overdrafts are a useful facility and tool in money management which cost the supplier. The first £500 is FOC so why would I want to give free credit up? Barclay's process for removing overdrafts seems heavy-handed and inept. An overdraft facility is not just based on income, both assets, track history and credit rating are also important. I started this to find out if others had been similarly treated. So far, the denizens of the MSE Forum seem to be pro-Barclays, which I am surprised by. 

Taking overdrafts away (particularly free ones) makes good sense for Barclays, otherwise they would not be doing it. They can always reinstate them if people complain and are sufficiently credit worthy. I do not expect that they will lose many customers as a result of this exercise.

Hoenir

Robintones said:

Overdrafts are a useful facility and tool in money management which cost the supplier. The first £500 is FOC so why would I want to give free credit up? Barclay's process for removing overdrafts seems heavy-handed and inept. An overdraft facility is not just based on income, both assets, track history and credit rating are also important. I started this to find out if others had been similarly treated. So far, the denizens of the MSE Forum seem to be pro-Barclays, which I am surprised by. 

Nothing to do with being Pro Barclays or any other agenda. Bottom line is that this very obviously saves Barclays money.  With £2 billion of savings targeted. Just one facet of many strategies I'd suggest. None of which will be directed at you personally. 

Robintones

Hoenir said:

Robintones said:

Overdrafts are a useful facility and tool in money management which cost the supplier. The first £500 is FOC so why would I want to give free credit up? Barclay's process for removing overdrafts seems heavy-handed and inept. An overdraft facility is not just based on income, both assets, track history and credit rating are also important. I started this to find out if others had been similarly treated. So far, the denizens of the MSE Forum seem to be pro-Barclays, which I am surprised by. 

Nothing to do with being Pro Barclays or any other agenda. Bottom line is that this very obviously saves Barclays money.  With £2 billion of savings targeted. Just one facet of many strategies I'd suggest. None of which will be directed at you personally. 

We have all had targets to hit. I would suggest a poor way of doing this would be by infuriating your good customers. I wonder how many Barclays will lose? I suppose it's unfortunate for them that the Nationwide ads are just pressing home this disinterested corporate image.

GeoffTF

Robintones said:

I wonder how many Barclays will lose?

They have already been through this exercise with Barclaycard. They clearly did not lose enough customers to deter them from the present exercise. If they are only going to be lending a few hindered or a few thousand pounds, they are not going to spend much money on credit scoring. I expect that it will be carried out by junior staff who type the answers into a computer, and the computer says yes or no, with a bias towards no. A false yes will give them problems, but a false no is not likely to give them problems.

eskbanker

Robintones said:
We have all had targets to hit. I would suggest a poor way of doing this would be by infuriating your good customers. I wonder how many Barclays will lose?

Interesting choice of phrase - a long-standing customer who never goes into a provided overdraft (and who perhaps chooses to use savings products at other institutions) isn't necessarily a good customer as far as the bank is concerned, whereas one who generates more profit for them may be - obviously many consider themselves to be good customers by virtue of 'loyalty' but it doesn't always work that way....

[Deleted User]

You are not a good customer to them - you appear past needing borrowing, have a low disposable income for them to sell you their investment or savings products plus don't appear brand loyal (e.g. don't mention Barclays products such as insurance).

The reason they are happy to approve a loan is that they actually make money until repaid; an unused overdraft costs them reduced lending elsewhere and makes them no money from you.

On a wider note - I was slightly disturbed to see that someone thinks that some banks 'care' about their customers. This one doesn't nor do any of the other ones including quasi-bank Nationwide.