Barclays ‘personal reserve’ overdraft system goes live for millions of customers next

[Legal Beagles]

All Barclays current account customers will see changes to their accounts from next week as the new overdraft service, Personal Reserve[1] , is introduced on 18th August, simplifying banking.

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[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

Barclays ‘personal reserve’ overdraft system goes live for millions of customers next week


All Barclays current account customers will see changes to their accounts from next week as the new overdraft service, Personal Reserve[1] , is introduced on 18th August, simplifying banking.

To help customers understand Personal Reserve Barclays has launched a new micro site explaining how Personal Reserve can be of benefit to them.

The site includes a video diary explaining the new system through the life of a fictional character, Sam, and the ups and downs of his financial situation.

The section also contains information about Personal Reserve including details of the new charges and fees and when they apply. The micro site can be found at: www.barclays.co.uk/personalreserve/ (miss out the video Personal Reserve - Current account - Barclays - unless u find perverse pleasure in sticking rubber ducks on his toast )

All eligible Barclays customers with a current account have already received letters explaining Personal Reserve, advising them of their individual limit and giving details of how they can opt out of the service if they wish. Around 90 per cent of customers have chosen to keep the Personal Reserve service on their account.

Andy Harris, Head of Current Accounts for Barclays said: “We know from our research that customers appreciate the certainty, simplicity and transparency that Personal Reserve will bring. Most competitors’ overdraft charging structures are highly complicated and difficult for customers to understand. The benefit of the new Barclays structure is that a customer knows exactly what payments are going to go through, what they are going to get charged and when.”
Customers who have any questions about Personal Reserve can speak to their local branch, contact telephone banking or visit our website at www.barclays.co.uk.
Notes to Editors:
1.The Personal Reserve acts as a safety net providing a pre-agreed and pre-notified level of funds available beyond a customer’s normal borrowing limit.
If a customer’s account goes beyond their agreed overdraft limit and into the Personal Reserve then they will be charged one flat fee of £22 which will cover all payments and withdrawals made for the next five days within the Personal Reserve limit.
No interest will be charged on this amount and they will incur no charges or fees for having the service on their account when they are not using it.
If a customer goes beyond their Personal Reserve limit or they do not have a Personal Reserve and have spent beyond their agreed limit then items will be returned unpaid (unless a guaranteed transaction) and a fee of £8 will be charged.

[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

any one received one of these letters ?

All eligible Barclays customers with a current account have already received letters explaining Personal Reserve

Also read this thread for more info ---->>> Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!! - Legal Beagles

[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

from MSE - Barclays personal reserve - MoneySavingExpert.com Forums

littleowl
MoneySaving Stalwart


Join Date: Jan 2007
Post Count: 268
Thanked 107 Times in 64 Posts



I am furious. Barclays, in a high handed manner, has imposed a 'personal reserve' on my account. I haven't been asked whether I want it, but must inform them if I do not. In other words I have to opt out and not in.

it is fairly obvious why Barclays is dong this I think. With the prospect of the bank charges fiasco coming home to roost Barclays is seeking another way to raise revenue.

I have held an account with Barclays for over forty years and this might just be the one step too far which will persuade me to move away from this arrogant bank.

And this

I'm a lone-carer/parent on meagre benefits & Barclays just "gave" me a total of £1,250 in "honoured payments"! (Very inviting when you're struggling to survive on a low income!) But if folk like me get snared into this scam, how many will be able to afford to get free of it once those charges bite?

!!!!!!!!!!!!!!

I also feel that the mailout looked a little like Barclays standard junk mail/marketing...so I wonder how many people just shoved it into a drawrer without reading it??

[Richard76]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

I am currently overdrawn with Barclays, and am on benefits too. All I want to know is should I opt out of the Personal Reserve or will it help me get into credit or more into debt?

[calamity jane]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

Welcome to legal beagles Richard76. I'm sorry I don't know enough about the subject to give you a full answer to your question, but from what I've read on the subject, the £22 reserve usage fee covers 5 working days, if you do not deposit enough into your account to cover any payments and the account is still within the reserve another £22 will be charged to your account.
I'm sure someone more knowledgeable will be able to give you a more detailed response tomorrow.

[Richard76]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

Welcome to legal beagles Richard76. I'm sorry I don't know enough about the subject to give you a full answer to your question, but from what I've read on the subject, the £22 reserve usage fee covers 5 working days, if you do not deposit enough into your account to cover any payments and the account is still within the reserve another £22 will be charged to your account.
I'm sure someone more knowledgeable will be able to give you a more detailed response tomorrow.

Thankyou, I joined up after seeing a whole list of pages on Google about Barclays/Personal Reserve/Unfair Bank Charges etc. I've been in the red with Barclays for some time now, I have an unvaried amount of money going in each week and all my bills are being paid via direct debit so theres no problem there but still the interest adds up as I've been overdrawn since January/February time.

Theres part of me that wishfully thought that this Personal Reserve would see me somehow get into credit but everywhere I've looked people are opting out of it.

Am sure thats only those who are in credit as opposed to me who's not.

[EXC]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

So, the Barclays Personal Reserve that has been widely has been widely criticised for being inordinately complicated and virtually impossible to understand has not prevented Barclays Head of Current Accounts to proudly state that ''We know from our research that customers appreciate the certainty, simplicity and transparency that Personal Reserve will bring''.

It's so simple in fact that Barclays have gon to the ridiculous lengths of having to launch a 'micro site' in an attempt to explain the minutiae of it including an instruction video.

And how simple is it? I'm yet to come across anyone who has a firm grasp of it. I asked the OFT two months ago if they fully understood it and the last I heard is ''we're still looking at it''.

[Paule]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

My Barclays account is run perfect, it has credits going into it, payments coming out and never goes overdrawn, never has charges on it (now).

Guess what, ive not been offered the Personal Reserve, I wonder why??
Is it because I wouldnt be living in it and therefore not making them money???

I would guess that the only people been offered this are those who are usually overdrawn a lot, and this will just put a gloss on the situation and make it easier for people to STAY overdrawn, whilst not realising that its costing them dearly for the priviledge.

In an ideal world, it would be aimed at people who run good accounts and once in a while had to go overdrawn, ie emergencies etc,
and not aimed at those whose accounts should be stopped from going overdrawn to save them charges etc.

[EXC]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

''BARCLAYS CUTS OVERDRAFT FEES FROM CRIMINAL TO OUTRAGEOUS''

http://www.thedailymash.co.uk/news/b...s-20080529983/

[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

ahhh i do like the Mash soo funny, and sooo true.

From next week customers who go beyond their overdraft limit will be charged just £8 each time the Barclays computer says 'no' to another computer.

A spokesman said: "Thanks to hi-tech innovation our computer can now say 'no' a lot faster than it used to.

"Before it used to go 'nnnnnnnnnnnooooooooooo', which would cost roughly £35 in computer time. Now it just goes 'nope', really quickly."

He added: "Anyone who says it only costs £2.50 for a computer to say 'no' obviously doesn't know very much about computers and stuff.

[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

90% of people OFFERED the reserve have FAILED TO OPT OUT

I wonder what percentage would have OPTED IN had it been an OPT IN requirement as opposed to an OPT OUT requirement.

[agnes]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

We have received the letter, obviously they are under the misguided impression they are on to a nice little earner with our account, but we have left the overdraft, currently below our overdraft limit, with enough money going in to cover the monthly interest and the fee covering the holiday insurance, breakdown cover and card protection, and reducing it slowly, ( waiting for them to settle my claim ) and we have migrated to the parachute account, Is it worth opting out ??

[Amethyst]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

Agnes You havent got a scanner have you perchance? i havent seen the documents they have sent out yet and I would love to. (little things lilttle minds etc lol)

I would opt out. It takes away the temptation doesn't it. How much have they offered you as your reserve ? and how much is your current overdraft ?

You aren't really using the account...do you use the holiday insurance, breakdown and card protection ? I assume this is a fee paying account with these extras included?

You are keeping the overdraft under control until they repay your charges, then you'll close the account and use your parachute full time ?

One thing to check is any ''rules'' in the T&C's re the amount of money you have going in each month whether they may swipe the overdraft from under you at any time because of the reduction in income to the account...just be careful of that.

[agnes]

Re: Barclays ‘personal reserve’ overdraft system goes live for millions of customers

Hi, yes I do have a scanner and I will willingly do that WHEN I can find it!! I hope I haven't shredded it !! Anyway, the offer was an extra £1000, the present limit is £5,000, and my balance is £4,300. with money in per month as £127.49 and outgoing £14.50 account fee for Additions Plus and interest around £32.00. Yes we do use the holiday insurance once a year. what do you think?