Barclays personal reserve

ShelfStacker_3

littleowl wrote: »

As far as I am concerned the problem is that Barclays has, without any discussion, imposed a personal reserve on my bank account. Yes, of course I can opt out and have done so but I thoroughly object to not being given the opprtunity to opt in if I wanted to rather than having to opt out.

If you're not going to use it, what does it matter if you're opted in or opted out? Who could be bothered enough? You weren't externally scored for it, you weren't charged for it, all that's happened is you were sent a letter about it; why get in such a fuss about it? It's not like it costs you anything, opt-in or not.

I also think that some people with poor money management might well use this facility to their detriment.

Well, they've been advised of how much it costs - not buried in the T&Cs, but with a direct letter advising them of it and making it clear that this is an offered service. If people with poor money management want to use a facility that they have clearly been advised of the cost and limit of to their detriment, then that is their problem, as it should well have been with overdraft charges.

The other appalling aspect of the scheme is that if a customer were to go over the 5 day limit of using the reserve he/she would be charged a swinging £22 - and that will apply every time they use the reserve over the 5 day stipulation.

...yes? And they've been clearly advised of that cost beforehand. Where's the problem exactly?

That is an horrendous amount of interest which is why I said in an earlier post that I believe that Barclays is trying to find a way to increase revenue now that the scandal over bank charges is so high profile.

It's hardly just an increase in revenue; in fact, for certain types of customer, it may indeed be a decrease in revenue. If anything, it's Barclays making an effort to spin overdraft charges as a service, rather than a penalty fee.

To reiterate; if you're not going to use the reserve, it will make no difference to you whatsoever, and if you accidentally slip into the red it may actually cost you less. If you're opted in, it will make no difference whatsoever, all it means is that the banks' internal anticipatory limit (which they all have, look it up) is made known to you and given a clear set of charges. Which is why I find all the outraged "OMG how could they have signed me up without asking for something that has no impact on me whatsoever" responses so puzzling.

littleowl

As you don't bank with Barclays then I suppose it is of no concern to you.

I have held an account for over 40 years and I find the imposition of something I was not asked if I wanted arrogant in the extreme.

bluflashlite

Okay, for the benefit of today's posters, let me spell out exactly WHY this is an outrageous liberty for Barclays to take:-

Those of us who are lucky enough to be "financially shrewd" will, I agree, be unlikely ever to use the Reserve facility outside of the most exceptional circumstances. But, with all due respect, it would be very arrogant to presume that ALL of Barclays current account customers are equally as shrewd as the lucky few. If that were true, then the current economic situation would not be "wobbling" as a result of excessive amounts of bad debts! - Indeed, there'd be little need for this site either, if the UK's entire population were such efficient money managers!

Previously Barclays Additions was offered as an "opt-in" upgrade for current account holders, and for this they also found themselves apologising to some customers for mis-sold upgrades, because counter staff were 'hard-selling' those upgrades inappropriately. Barclays have overcome that dodgy practice by using the even more forceful "opt-out" tactic. In this way, Barclays are endeavouring to prey upon unwitting and vulnerable customers, some of whom may be elderly, infirm, immature, or made vulnerable by learning difficulties, OR already under extreme financial duress as a direct result of the rising cost of mortgages, fuels, foods, etc., etc. (& furthermore they can likely ill-afford internet connections to access the good advice on this site!) Given that Barclays are all-too-aware that the availability of 'affordable' credit has dried up, they are keen to corner an easy target to profit from and have therefore set aside these Reserve funds to do just that!!

Before taking any smug satisfaction from being way too knowledgeable and shrewd to use such a facility, please try a moral calculation of the principles at stake, in working out how much Barclays will rake-in from this Reserve facility in the next 12 months. After considering the ethics of accruing that fat figure awhile, perhaps give some thought as to just why MSE has campaigned so hard for us to reclaim unreasonable bank charges? Has the High Court not addressed this matter? More importantly, is it not the case that the only reason the banks had got away with those charges for so long was that most of us were made to feel powerless by the banks while others cheerfully accepted those charges by saying "I don't have a problem with it"???(!)

I regret to say that these rather-too-accepting posts smack of "I'm alright, Jack" attitudes which may offend or even patronise. -- Folk who have experienced the intolerable trauma and misery of extreme hardship can quickly have compassion for fellow suffers, but they are equally enraged by tactless thoughtlessness from those who hold only narrower perspectives.

My understanding of these forums is that we are here to support one another's vulnerabilities &/or lack-of-awareness to become stronger, not only as individuals becoming more adept at saving funds, but also as a unified strength, to reclaim that which is FAIR to ALL. In order for that to happen we should be cautious that we don't create impressions of being a shrewd elite by making smug presumptions. :think:

I might add that I'd far rather make the effort to raise awareness on this site than waste my time writing to Barclays. What would be the point? It would be totally ignored by the Barclays fat-cats who made this decision, who in fact wouldn't even read anything I personally wrote! At least posting my concerns on MSE is more likely to gain the attention of the people who matter! (i.e. their customers!!) :T

ShelfStacker_3

littleowl wrote: »

As you don't bank with Barclays then I suppose it is of no concern to you.

I have held an account for over 40 years and I find the imposition of something I was not asked if I wanted arrogant in the extreme.

But... why does it matter if something is imposed on you if it has no effect on you? I could understand if they were changing your overdraft interest rate or amount because of it, but they're not - they're simply allowing you to go over your limit for a fee, if and only if you choose to do so!

bluflashlite

ShelfStacker wrote: »

But... why does it matter if something is imposed on you if it has no effect on you? I could understand if they were changing your overdraft interest rate or amount because of it, but they're not - they're simply allowing you to go over your limit for a fee, if and only if you choose to do so!

Oh!, if only acquiring debt was the very simple matter of choice that you make it sound!!!

Unfortunately many of us find the "choosing" is forced upon us by dire hardship circumstances that place us between a-rock-&-a-hard-place. If you consider the dilemma of having to "choose" between keeping the roof over your family's head or feeding your children instead, you might appreciate the reason I ask you to have a little more compassion for folk who are too overwhelmed with more pressing issues than the T&C!

Loan sharks would quickly be a dying breed if desperate people had the option of "choosing" as you suggest. Barclays "opt-out" tactic is equal to a loan shark waving a bundle of notes under someone's nose & saying "Any time you need it, its yours for a fee!" and unfortunately, when people are desperate, they are only able to focus upon the first half of that sentence. In those circumstances, without adequate means to quickly repay, what happens when the applied costs cumulate to exceed the set limits? Further charges then spiral and create further mayhem!

Clearly you have been fortunate in not having to suffer such experiences, but do please have some respect for those who do have to tolerate such hardship? Neither is it always the case that 'poor choices' have brought about such hardships (for example, who "chooses" to have a sick or disabled elderly parent who needs care?)

I respect that this isn't a problem for you personally, but nevertheless, it IS a potential problem for many other people....and as prices continue to rise, the number of those people will increase....while Barclays bleed them dryer still! Taking in the wider view, exactly how is that likely to help the current economic situation to settle down? Won't it just result in more bad debts & bankruptcies? (or perhaps even result ultimately in the panic-queues we saw at Northern Rock?)

Surely Barclays & others would far be wiser to focus themselves upon attracting more savers instead of taking even more unaffordable credit risks this way?

ahamaton

I am opting out straight away. This should be illegal and I hope the OFT is taking note of Barclays' attempt to wrangle it's customer's into inadvertently authorise them to apply unfair charges and as one of the the other respondents said try to make up the lost money in claims. I wish we could go back to putting money under our mattress, you just cant trust these con-merchants.

ahamaton

By the way, I think Shelfstacker must be a Barclays employee as nobody would be that proud to put there niavety on public show (-:

ShelfStacker_3

ahamaton wrote: »

By the way, I think Shelfstacker must be a Barclays employee as nobody would be that proud to put there niavety on public show (-:

Yes, obviously, because bankers often call themselves "ShelfStacker" on public forums. :rolleyes:

The concerns about those who are irresponsible with money misusing this facility, which are genuine it must be said, still do not explain however why MSErs, who aren't on the whole irresponsible with money, are so eager to opt out of it and so angry with its implementation, especially since they have no intention of using it.

natweststaffmember

Sorry but should I call myself shelfstacker to post as well, pmsl.

ahamaton

Thanks for not taking it personally mate, I think you know I'm not having a personal dig at you (-:

But I do think it's odd that you are so keen to defend an organisation that has applied charges historically with little discretion to people that really cant afford it. Justifying them as admin charges that you and I both know do not amount to the amount of the charges applied. I understand your point that money frugal people should not be concerned and that we can opt out but I really don't think that is the point. This is about consumer's rights, we shouldn't have to maticulously disect each bit of mail from Barclays in order to realise we want to opt out of these schemes. Where does it stop... Will it get to the point where we have to read through 12 pages of legal jargon in small print that alot of us don't understand in order to realise we do not want to take part?