Barclays personal reserve

qyzge88

I got a letter from Barclays too. What happens if you opt-out of the personal reserve and should you in the future ever get into financial difficulty what are Barclays going to charge you??? Are they going to charge what they like and turn round and say "well we did offer you the personal reserve and you turned it down"?????

natweststaffmember

My understanding is that if you opt out of the personal reserve and you exceed the overdraft, you do not get charged £22 but that the bank can decide at their discretion to pay or return an item but a charge of £8 PER item will apply. There is not from what I have read on this an auto opt in if you opt out.

robertjonesuk

MABLE wrote: »

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.

sorry but i meant to say that i am NOT ashamed for working for barclays

sorry about your isa but there must be areason for that. check with the branch and if no success ask them to escalate the complaint.

smithja

I am not sure I see what the issue is with this.

Surely it first of all reduces a bounce or guarantee payment charge to £8 from £30 odds, so no complaints there and if you go in to the "reserve", which you know you have you can be confident your payments will be made met within your limit. That charge is still less than the current bounce charge and yet they are going to pay as many items as are presented up to your reserve limit. Even one bounce charge at present is more than £22, and 5 days is not a bad deal considering this is unauthorised borrowing.

What would you rather do opt-in for a cheaper service where potentially over 5 says you could be charged x number of £8 charges, or accepted one £22 charage.

Plus I beleive the reserve is an extention of your overdraft in that you wont end up with yellow and red marks on your credit file, which is about to start happening (if it does not already) with bounced payments.

qyzge88

So from reading some of the posts I think it would be better to have a personal reserve. If I opt-out and go over my overdraft then I would be charged £8 per transaction I try to make or any direct debits that are on my account. I would also get a hammering on my credit history.

So is there a reason for not opting in for a personal reserve?

Advice would be much appreciated

Mark7799

edi454 wrote: »

So from reading some of the posts I think it would be better to have a personal reserve. If I opt-out and go over my overdraft then I would be charged £8 per transaction I try to make or any direct debits that are on my account. I would also get a hammering on my credit history.

So is there a reason for not opting in for a personal reserve?

Advice would be much appreciated

If you are able to wade through the over-emotive language used in the thread, it's difficult to find a reason why you should NOT go for the personal reserve. Most people's objections seemed to be based on the fact that it's an opt-out facility rather than an opt in facility.

Personally, I would first of all try and get your agreed overdraft limit up as high as possible. This is not to tempt you to use it but reduces further the risk of going into your 'Personal reserve' and saves you incurring the fees for doing so. Having done that, then see what is available to you via the PR and consider utilising that as well.

qyzge88

So if I look at this with my moneysaving cap on

Without personal reserve I would be charged £8 per transaction I make. So say I have 10 direct debits linked to my account, which is taken out once a month. As it's only charged once a month in total the bank would claim £80 off me plus a hit on my credit history.

Using the personal reserve I would be charged £22 every 5 days regardless of the number of transactions. Sticking with 10 direct debit payments it would go out once a month, but a £22 charge would be applied every 5 days. So in a month the Bank would claim £132, but it would not affect my credit history.

So basically having the personal reserve would cost me an extra £52 a month, is this correct? or am I looking at it in a wrong way?

Mark7799

edi454 wrote: »

So if I look at this with my moneysaving cap on

Without personal reserve I would be charged £8 per transaction I make. So say I have 10 direct debits linked to my account, which is taken out once a month. As it's only charged once a month in total the bank would claim £80 off me plus a hit on my credit history.

Using the personal reserve I would be charged £22 every 5 days regardless of the number of transactions. Sticking with 10 direct debit payments it would go out once a month, but a £22 charge would be applied every 5 days. So in a month the Bank would claim £132, but it would not affect my credit history.

So basically having the personal reserve would cost me an extra £52 a month, is this correct? or am I looking at it in a wrong way?

In your analogy, you're assuming that you do nothing to your account with regard to sorting out the overdraft after it happens. My understanding is that a personal reserve is not meant to work like that but to offer you a breathing space of a few days to put it right without the risk of items being returned (hence my comment about getting your arranged overdraft limit as high as possible first)

qyzge88

Shwmae Mark7799

I get what you mean, Barclays would need to notify me first before they charge anything. So it'll give me a little time to deposit some money into my account, so potentially I wont get charged a thing if it's sorted out in time.

Diolch yn fawr:D

Mark7799

edi454 wrote: »

Shwmae Mark7799

I get what you mean, Barclays would need to notify me first before they charge anything. So it'll give me a little time to deposit some money into my account, so potentially I wont get charged a thing if it's sorted out in time.

Diolch yn fawr:D

I don't know that they would necessarily notify you - they may be expecting you to keep track of things