Barclays personal reserve

manchesterkat

I checked my bank account today and found that I had received 3 charges of £8 added to my account today. Unsure of why I had received these charges as I under an impression that I had a buffer on my overdraft of at least £5 as wasn't really concerned about the being £3 over my overdraft. So i phoned Barclays up tonight when I got home from work to find out that i had been charged these as a guaranteed transaction fee.

I was on the phone for nearly an hour as they were trying to tell me that they had to guarantee a debit card payment. First they were telling me it was for a payment that I made for my mobile phone but when I made that payment i still had a £100 left in my account. Then it was for my card payment that did take me over my limit. Which I could just about understand. However it was for the double payment the following day they were telling me the fees were for a stand ordering that had gone out that day and a card payment that day at about 5.30. However i actually been paid that day as well. So they were basically saying that had to guarantee the payment so charged me the £8 twice, even though my salary had gone into my bank account. All I can say is thankgod I used my card once that day. I have however manged to get these 2 charges refund, though only once after I had broke down in to tears on the phone.

It did take me nearly an hour to get to the bottom of the charges as they keep tell me it was because the shop where the card transaction had taken place as had ask for a guarantee which meant the Barclays has to charge this to my account. However as I kept pointing out to the person I hadn't actually gone overdrawn and was well in my overdarft limit.

I am now scared to use my debit card now on days when I get paid as they are just going to place charges on my account for no reason.

Has any one else experience this problem.......

alohahawaii

ShelfStacker wrote: »

Am I the only person who doesn't see the problem with the personal reserve? So long as it doesn't appear as part of your available balance (so there's no temptation to dip into it) then it'll only affect you if you go over your overdraft limit, which a) you shouldn't do and b) people who are truly desperate for cash that quickly will accept the charges for, especially since there's no hit to your credit file?

I'm not a Barclays customer, hell, I don't like Barclays, but I genuinely don't see an issue with the Personal Reserve.

I see a problem with it.... It's apply for and giving customers an overdraft that they don't want and haven't applied for with very high interest rates. so people who aren't money savy will end up using it instead of applying for a normal overdraft or more money. basically trying to get people into debt and make money off it. I've also been with them since I was 16 and on my 18th birthday i was offered £300 overdraft and £1600 credit card from barclays. then when i used some of this credit they automatically increased the credit card to £2600 and increased my overdraft to £800 when i was unsure and didnt agree in the bank.

that's the problem. they make money from people in debt
my personal reserve is £500 and i never received a letter.

Scousebird_2

We had our opt out letter. God I had to laugh.

This was their stance on opting out

''This means that if you go overdrawn, or beyond your agreed overdraft limit should you have one then further payments will not be made and fees will apply.
(same as it was before then before you interfered-just another way of you telling me I knew about your terms and conditions on bank charges-good job I've never had one then)

and

(letter dated 21/08/2008)

''If you wish to discuss your finances in general or apply for reserve to be set up on your account (no, do you think I walked to the postbox for nothing when I posted back your opt out letter) please contact us'' (so you can sell me something else).

''Please be aware that you will be unable to apply for a reserve until after 18/18/2008 (letter dated 21/08/2008) and that in future you may not be eligible for the same reserve amount''

So in other words, Barclays are telling me it's their way or no way, take it now or naff off.

Fine...I will naff off!!

I do not like the new reserve and I am glad my banking is the same transparent service it was before, without this new system as already I am reading some not so nice things here.

Natan358

steve012345 wrote: »

I have received one of these letters this morning offering a reserve of £150 on an executor's account that has stood at a nil balance for a year or more. I did ask for this account to be closed some time ago but my request was ignored.

If I was stupid enough to make full use of the reserve then the effective rate of interest for a year would be 763% (a charge of £1,144 comprised of £22 charged 52 times throughout the year). I believe that this phenomenal rate of interest beats anything charged by any loan sharks!

I find it very sad that a once respected financial institution can sink so low as to send these letters out under the pretence of "making a number of significant changes to improve your day to day banking".

i am actually surprised you took the time to work out the interest there, did you not realise that the reserve is an emergency buffer, if you ever run near 0 on your balance and cannot withdraw any money then you only have yourself to blame, i think it is a high rate to use it, but if it was lower interest rate, then everyone would be treating it as an overdraft

Natan358

natweststaffmember wrote: »

I disagree with your opinion for one reason. The bank will be able to charge you for going overdrawn whatever the result of the OFT test case, it is merely the amount that will be at issue. I think each individual needs to look at how they have been charged up until now. Read the information carefully and based upon what HAS been the case to what COULD be the case, make a determination whether it would benefit them or not.
As I said, from what I have read, opting out means no payments going out and opting in could mean payments DO go out. Is there anyone who works for Barclays who can clarify this, irrespective of their views of the Banks' test case that is ongoing?

Yea you are dead right :T

Natan358

MrDinkle wrote: »

I would just like to clarify something, I have spoken to Barclays about this and pressed them for a black and white answer which was some chore.

Effectively this new 'personal reserve' could potentially allow them to charge someone as much as £1332 in a single calendar month.

- The charge is £22 per 5 day period just for using the reserve
- Average month 6 x 5 days = £132

This works out at £42 pounds MORE than 3 paid referrals @ £30 each which is the current limit

Add onto that £8 per unpaid / returned / honoured item to a limit of 5 per day = £40

£40 x 30 = £1200 in a month (really really worse case)

This could spiral out of control for somebody who has a cashflow problem which would IMO compound problems worse than the current system.

And they are doing you a favour by opting you in.

This is SO wrong.

ermmm your slightly wrong there, just to correct you matey, very unlikely that its 6 x 22, its more like 4 x 22, the weekends will be included in the 5 days of usage so if used from tuesday to monday the weekends will be included so effectively you get 7 days for 22 pounds.

next the 40 x 30 is wrong, well that would mean that someone has 5 direct debits every day debiting so how likely is it that someone has 150 direct debits, its not! the old service worst case was 35pounds per day for unpaid direct debits so 35 x 22 because the weekend direct debits will all go on the monday so you have to take 8 days off the month so hence the 22 days x 35pounds which is 770 pounds per month, the new system if you say 40 x 22 then yea its more but like i said no one has 150 direct debits and if we say realistically 20 direct debits per month maximum then that changes everything

i could give you a chart working out all the alternatives and maximum charges per month to help you understand but trust me just think about it, its cheaper with the new system

lynwestie

I am furious with barclays and I have just discovered a sting in the tail to refusing the reserve.

We have banked with barclays for over 30 years and other than a couple of unnoticed occasions stayed within our agreed overdraft limit . On the couple of occasions we have gone a few pounds over an apologtic phone call to barclays has always removed the fee:T .

So like many others I saw this reserve as a way of us giving barclays authority to make this charge if we accidently went £1 over our agreed limit . I promptly opted out on our 3 acounts deciding that if there was another such occasion and charge a phone call would get it removed.

last week I paid in a cheque for £3000 and as have done many many times over the years wrote out a cheque for £663 to pay my tesco credit card bill at the same time . Barclays bounced the cheque because the funds were "uncleared" . Never in our lives have they ever bounced one of our cheques against uncleared funds.

Phoned them in disgust last night and dispite them knowing there was a £3000 cheque paid into our account kepping us well within our overdraft limit but "uncleared"was told that as we have opted out of the reserve cheques will no longer be honoured . If we had of had this reserve we would still have incured the £22 fee which we didnt incur because they bounced the cheque and charged us £8 .

so please be warned that you will incur this £22 against all payments made from uncleared funds as well if it takes you over your agreed overdraft limit.:mad: and that there has clearly been a change of policy in terms of such transactions made from your account. cheques will no longer be honoured in these circumstances if you opt out and so wont only effect those going over their overdraft limit . We have incurred a fee of £8 and have the embarrasement of a bounced cheque for the first time in our lives .Tesco will no doubt charge us a hefty fee too

Rant over
lyn

katieeloise

I too have received 2 letters today from Barclays - I had opted out in August - I have never ever been overdrawn or had any banking problems, also had accounts with them for 30 years - they refused 3 direct debits so I have been charged 3 x £8 and rejected 2 payments made by debit card so another 2 x £8,:mad: as not enough cleared funds - Barclays actually 'sweeps over' cash every night into the current account - after 1 1/2 hours on the phone to them on a 0845 number they agreed it is an error their end but they dont know how to put it right without me opting back in.......... They did however agree to refund the 2 charges.

lynwestie

Thats strange katie because on the day they bounced our cheque 2 other small card transactions were put through but as yet no charge for them so maybe they were still within our overdraft limit at the time but the cheque took us over but only against "uncleared " funds

gailey_2

I have been given £150 reserve however when queried this does not mean £150 extra on top of overdaft ist just to cover direct debits standing orders however im confused as im within my reserve and they declined 2 dds and imposed £8charge on each!
I not even spending on account for weeks but charges have pushed it £150 over limit!
Before I was charged £30 no more than 3 times amonth! now its £22 every 5 days!
I have paid thousands of charges and does not look liek I can get anything back but will try writing to them.
In the mean time on limited income and struggling as charges put me worse off and swallow up my next child benefit payment.
Am fed up but been with Lloyds and natwest in past who were worse hubbys with abby and they dreadful. Would love to pay off overdaft and be debt free but seems impossible atm
The nice lady in barclays said soem people had got charges refunded to them by writing to head office but dont fancy my chances.