Barclays slash overdraft charges

Sugarfree_Babe

I posted about this last week on the Bank Charges thread, asking the same question.

I currently have a large overdraft facility and only ever use up to half of it and that only rarely. I am often OD by a couple of hundred pounds.

The thing that bothers me most is the fact that I am severely disabled due to multiple illnesses and have not been able to work for some years (nor am I likely to be able to do so)

I subsist on Income Support and disability benefits. My savings were used up years ago. From the money I get, I have to pay for my care and also part of my mortgage. My electric bills are very high due to the need for electric lifting equipt and electric wheelchair battery charging, extra heating, laundry and other electircal equipt. Fuel prices are set to rise by 40%

My large quantity of pills and medication needs to be collected about twice a week. Because I live in a rural area, no one delivers (not even Tesco) so it is a 20 mile round trip.

My food bill has gone up about £20pw over the last year. So there are all these price rises and my income has only risen about £4 per month to cover it.

Given all these, my main concern is that I will end up going over my limit. The alternative is to go without food or heating or both.

GadgetsDS

Sugarfree_Babe wrote: »

This week I had a letter from Barclays to say they are changing the terms and conditions of my account.

They say that in addition to my overdraft facility I will have a new "reserve" facility on top of my overdraft. If I go over my overdraft and into reserve by even a pound, I will be charged £22 for every five days I am in the reserve.

This looks to me like excessive charges under another name. I have never yet received a charge because I have been able to manage my money (with a certain amount of juggling).

I am worried for the future because of the rise in food and fuel costs. I live in a rural area and have a 20 mile round trip to go shopping, doctor etc and not even Tesco delivers to my village.

These charges will affect the poorest in society.

i also got this letter, £22 is still to much but its better then £35

jadecinema

The way I see things is if you go over your overdraft limit and into your personal reserve, you are charged £22 per 5 days that you are in it. So, in an average month, 30 days, so 6 charges of £22, equals £132 in charges. Then if you exceed the personal reserve, you start acruing charges of £8 per paid or unpaid transaction. I may be wrong here but weren't Barclays old charges £30 per paid transaction over you limit and £35 per unpaid transaction per month, with a limit of 3 of each per month? So that's £195 a month you could have been charged. Usually I have about 4 things that come out of my account at the beginning of the month and sometimes about 2 days before my wage clears, so the new charges, instead of paying £120 or more in charges, I should now only pay £22. I'm slowly getting my overdraft down and in the coming months, shouldn't have to endure anymore charges (got it well down before the girlfriend wanted us to take a holiday).
Once we have a definite ruling on the old charges that they were unlawful, then I will claim. At the moment, I can't afford to repay my £1200 overdraft immediately if barclays demand I do.

blowjangles

I have just got notification of the new Barclays Personal Reserve which will come into effect on my account next month. What the 'reserve' means is that if you go over your agreed limit, Barclays will honour payments up to £500 which is your Personal Reserve. They will then charge you £22 for every 5 working days that you are in your Personal Reserve.
All well and good but to accomodate my own Personal Reserve, Barclays have reduced my agreed overdraft limit by £500. As I am up to my limit with having to pay for a holiday , when this comes into effect next month I will be almost £500 into my Personal Reserve and will be charged £22 each week. It will probably take me three months to reduce my overdraft to within Barclays new limits and will therefore be charged around £250 in the process.
Anybody in the same situation and any ideas how to fight this rather cynical ploy by Barclays to mug me?

kemena

Hi,
Yes I have had the same thing come through, but you can refuse it, I also got a little tear off strip and an envelope in the pack, where you can refuse this "upgrade" and leave your account with it's original settings as long as you send back the slip before the 1st august.

Hope this helps

alanjwilliams

Hi,

This could just be a paranoid rant, but I thought this the best place to find out..

I got a letter from Barclays Bank yesterday saying that unless I opt out by the 18th July, I am going to be given a "personal reserve." This will mean they can charge me £22 if I go over my agreed overdraft limit into my reserve, as a "reserve usage fee." This gives me 5 days to sort things out where I won't be charged again.

If I go subsequently go over my "personal reserve limit," or if opt out so that I don't have one and just go over my overdraft limit, i'll be charged an £8 "returned/guarenteed transaction fee" per item.

Does this stink a bit of a cheeky way for Barclays to get around this bank charges problem they're facing? Most people won't bother to opt out and as such the bank will have permission to bill us £22 for going over our overdraft limit.

Also, i'm a little out of touch with where this bank charges thing is at the moment but might the £8 per transaction fee end up being reduced through the courts? So by getting this out now Barclays are making the £22 for 5 days fee look more attractive than it might end up being?

Off course you are allowed to opt out at any time after the 18th by visiting your bank, but people like me are too lazy/busy at work to do anything other than internet banking...

Cheers.

Al.

valensi_uk

hi

i had the exact same letter last week.....i read the terms and conditions etc and i came to the conclusion that by accepting this personal reserve you are accepting to be charged if you go over your limit....theyve made it look nice and dandy by calling it personal reserve and by giving you an extra £500, but why dont they just increase your overdraft to cover whats over?

if you look at the letter there should be a tear off section that you just sign and send back with the pre-paid envelope to opt out.....i have done this!!

i made my decision because if the bank charges are deemed unlawful, which in my opinion looks likely, the banks wont be able to charge you for going overdrawn, whereas if you have accepted this personal reserve they can charge you £22 every 5 days.....

is this ok?

can anyone advise anything further?

thanx
matt

CLAPTON

if you search the threads you will find several lenghtly discussions already on this subject.

WhyOhWhy_4

blowjangles wrote: »

All well and good but to accomodate my own Personal Reserve, Barclays have reduced my agreed overdraft limit by £500.
Anybody in the same situation and any ideas how to fight this rather cynical ploy by Barclays to mug me?

I received one with the wrong overdraft on and called them they told me that the info for the letters was extracted from their systems on the 18th April so any changes to your account after that day won't be reflected in the letter. I confirmed with them what my actual overdraft was and it hadn't changed. If you contact them you might find that the letter had the wrong amount on. Hope that helps

WhyOhWhy_4

jadecinema wrote: »

The way I see things is if you go over your overdraft limit and into your personal reserve, you are charged £22 per 5 days that you are in it. So, in an average month, 30 days, so 6 charges of £22, equals £132 in charges.

This is totally wrong the most you would pay in a statement month for using your Personal Reserve (and that is if you are in your Personal Reseve for 4 weeks which is unlikely) is £88. It is not calculated every 5 days rather every 5 working days