Barclays personal reserve

Calchas

http://www.timesonline.co.uk/tol/news/politics/article4187620.ece

Most people have to choose to join a company pension scheme; studies show they are far more likely to do so if presented with a decision to opt out rather than opt in.

Obama is understood to be considering such policies of “auto-enrolment” to solve the problem of the large numbers of American citizens who are without health insurance.

The above examples are of a positive nature, but the principle is the same for the negative. It just needs a “nudge” in the opposite direction!
I fully understand why the majority viewpoint in this thread is hostile towards Barclay’s decision to “enrol” their customers into a scheme not of their choosing.

bluflashlite

ShelfStacker wrote: »

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.

I must most strongly object to the inference here! No-one (aside from yourself) suggested that people who are on low incomes and struggling to meet the rising costs-of-living are "irresponsible with money"!!
Do please try to refrain from being so patronisingly arrogant!

I might point out that many MSEer's registered here to resolve their debt problems - do you consider them equally "irresponsible" for acquiring such difficulties?

Financial difficulties do not exclusively arise from being "irresponsible", but they do usually force drastic remedies. Many MSE threads become useful tools in raising awareness to help us all become more financially astute, and particularly to help us in avoiding excessive or unnecessary costs. This thread intended to warn that the enticements of Barclays Reserve is a dangerously expensive option that should be avoided NOW, rather than later, when financial desperation might make it far harder to decline!!

Y'know, I can't help wondering, if warning people about financial pitfalls is as unnecessary as you seem to suggest, just what do see as the purpose of MSE? (& why do you need to use it?)

MrsTinks

You know... I really don't see the big problem either...
Now: You get charged £x for going over your overdraft accidently (about what? £35 at the moment? Sorry not been over mine so not sure about current rates etc...) and then you get charged for being further over your overdraft thanks to the charges...
New thingy: You go over your overdraft, you have 5 days to sort it (I might be reading it wrong), if after 5 days you haven't then you get charged £22 and again if you haven't fixed it in another 5.
So this is theoretically not a bad thing... IF you manage your money and it's only a temp glitch

It IS bad if you use it as an overdraft! - it's exceedingly bad if you are one of the many customers who's OD gets reduced with a 10 or 14 day notice...

But for people who manage their money and just have one unexpected bill go out then it's not a bad thing. I guess the argument will relate to who they decide to GIVE these facilities to... if it's everyone then it's bad, if it's people with history of managing their accounts well - maybe one or two glitches in 10 years etc then I think it should be seen as positive.

Just my point of view really

natweststaffmember

Can I throw into the mix, with what has been stated above by MrsTine, that we now have what is called Faster Payments service which means if people do use the Personal Reserve they can transfer money into it.
WIth regards to the Reserve itself, Martin Lewis has already suggested that people look into their own finances albeit not in the context of the Barclays reserve). Each individual is responsible for their own actions and NOT the bank itself. If by introducing this it gets people on this board and to look more into their own financial situation and Direct Debits and Standing orders then it is a good thing.
If people opt out then the bank can bounce up to 5 items at a cost of £8 per item. That means they make £40 in any one day and is at their discretion. Furthermore, those items bounced could incur charges from the recipients of those payments which means that the cost in real terms would be higher. The personal reserve in theory can benefit people however, in extreme circumstances it will be more expensive than previously had been the case. I guess the proof is in the pudding.

I am sure that those who opt out/opt in will really know if it is a good thing or a bad thing.

o_t_e

Hi - I've just had one of these letters; it's not something that will effect me as I'm never in that situation and I plan on sending the opt out letter tomorrow.

Can someone tell me if I've got the wrong end of the stick with this - if someone went £1 beyond their overdraft limit without realising it until they got their next months statement they could find they'd been charged £88 - is that right?

ShelfStacker_3

o_t_e wrote: »

Can someone tell me if I've got the wrong end of the stick with this - if someone went £1 beyond their overdraft limit without realising it until they got their next months statement they could find they'd been charged £88 - is that right?

No, Barclays write to tell you if you're in the Personal Reserve, allowing you to correct it. In practise the most you'd be charged if you acted quickly is £22, and also in practise it would take a lot to ignore an overdraft balance for a whole month.

robertjonesuk

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 (-:

well i am actualy working for barclays and has been for the last few years. the bank is as good and as bad as other banks.

btw, i have other things to be ashamed of (not to be published here) but working for barclays is NOT one of these

MABLE

robertjonesuk wrote: »

well i am actualy working for barclays and has been for the last few years. the bank is as good and as bad as other banks.

btw, i have other things to be ashamed of (not to be published here) but working for barclays is one of these

Not good when you are ashamed of the employee you work for. Personally speaking I have no faith in them at all. Without any reason Barclays closed down my ISA. When I queried it no ones knows why and the balance of £3,600 just returned to my currant account.

They are and have always been awful and they will never change.

CLAPTON

Just a quote from the consumer magazine WHICH...........


"Which? welcomes Barclay's move to reduce charges for unauthorised overdrafts and bounced payments...................... etc"

just don't know who your friends are......

o_t_e

ShelfStacker wrote: »

No, Barclays write to tell you if you're in the Personal Reserve, allowing you to correct it. In practise the most you'd be charged if you acted quickly is £22, and also in practise it would take a lot to ignore an overdraft balance for a whole month.

I must admit I only check my account once a month when bills are due, though my overdraft is interest free - I guess I'd be much more diligent if I was paying for it. And actually this personal reserve letter is dated the 10th and I've only just opened it - I'd be rubbish at being poor.