Barclays to introduce daily overdraft fees that could see customers charged £93 each

[Legal Beagles]

Bank to charge customers 75p, £1.50 or £3-a-day for using their overdraft Barclays say customers prefer this to complicated interest charges via Barclays says 70% of overdraft customers will benefit from fee changes | Mail Online.

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[Amethyst]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Probably a better take on it in the Telegraph


http://www.telegraph.co.uk/finance/p...t-charges.html


I'd like the press release from Barclays if anyone can get it pls.


anyway seems to be thus;

• £15 buffer for all overdrafts
• daily fee on overdrafts ( range from 75p a day to £3 a day depending on the size of the overdraft. capped at £35 a month)
• The charge for unpaid transaction fees, when the bank refuses a transaction, is capped at £8 per day
• not charge paid transaction fees,

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

If the fees are all stated upfront I cannot see a problem its supposed to be easy to change banks.

[EXC]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

If the fees are all stated upfront I cannot see a problem its supposed to be easy to change banks.

I don't think that they pass the test of being in plain intelligible language.

They may be in plain language but when the structure of them is so complex and so overly dependent on what/ifs they are not intelligible enough to confidently and accurately calculate what your banking services will be costing you over a given period, as several studies on this type of fee structure have shown.

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Easy answer in plain language don't go overdrawn its a well known fact Banking can be free if you stay in credit .

Banks make a profit with the charges

[meellis]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Unfortunately walesman free banking, even though possible, will be a thing of the past. Everything is being pushed towards electronic payment of some sort so cash is becoming worthless. When everything is electronic the banks will truly have us by the proverbial's and packaged fees will be the norm. I remember when I had a Barclays select account they rung me up one day and said they weren't happy that I went overdrawn every month. I said that part of my packaged fee was for the overdraught facility so I wasn't going to pay for something I wasn't using and they realised there was no answer to that. What the country really needs is a not for profit banking facility that helps people, especially the poor, manage their money and take advantage of the cheaper electronic payment methods. I wouldn't even mind a profitable bank if the profits were going back into the country as opposed to into the fat cats pockets but no government is going to start one or convert one we already own into one.

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Bankers rule the world read the history of the Rothchild family they financed wars and controlled governments same as banks do nowadays ,
You can have free banking I have a freebanking as long as I have the money in the account to pay the Direct Debits we must all learn to live within our means I do know a had a long hard lesson to reach today .

Can I add I detest Banks the Banking system and Bankers but they are more powerful than politicians lojk at the Ex MPs Blair is one now working for a bank

[EXC]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Easy answer in plain language don't go overdrawn its a well known fact Banking can be free if you stay in credit .

Banks make a profit with the charges

In 2006 the aggregate revenue of banks from current accounts was approximately £8.3 billion.
PCAs generate more revenue for banks than savings and credit cards combined: 31 per cent
compared with 17 per cent and 13 per cent respectively. Banks earned over 85 per cent of
their revenues on PCAs from two sources: net interest income from credit and debit balances
(£4.6 billion), and levying charges associated with insufficient funds (£2.6 billion).

[EXC]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

In other words banks generate twice their income from those in credit than from those not in credit.

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

So if you are not in credit its not good for the bank?

[des8]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Free banking has never existed.
Even if your account is always in credit you either receive no or very little interest on your balance.
If you were able to charge the banks the same rate of interest for depositing your cash with them, as they charge you for borrowing from them, you might be able to claim there is free banking.
This inbalance is essentially a hidden charge.
If they start to charge for their "services", to be equitable they should also remove this, and other, hidden charges.

On a personal note I'll probably now be moving from Barclays. My current account plus has an interest free overdraft (pay monthly fee) which is always maxed outand is now going to cost an even bigger small fortune to service.
Have to take Wales' advice and live within my means

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Its taken a tough learning to get to live within my means I now control my spending but always have a small pot for emergencies We all make mistakes in life I went from a lot to a little when the recession came now im better of by far with practically nothing .

[Amethyst]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

MSE's addings up example

Barclays changes - the losers

Customers who are usually or constantly in their overdraft could face a massive increase in fees. Someone permanently £2,001 into their overdraft will pay £1,095 a year, compared with £386 under the current charges.
At £1,001, costs will rise from £193 a year to £548.
At £500, costs will rise from £97 a year to £274.

Barclays changes - the winners

If you just dip into your overdraft by up to £15 you will be better off as there will be no charge.

Think there's rather more losers there.

Doesn't seem to scan with

daily fee on overdrafts ( range from 75p a day to £3 a day depending on the size of the overdraft. capped at £35 a month)

though

as £35 a month for a year is £420


mmmmm

New daily charges, up to £3/day (£1,095/year). Barclays will scrap its 19.3% EAR interest rate on agreed overdrafts and start charging per-day fees. It'll charge 75p/day on up to £1,000, £1.50/day from £1,001 to £2,000 and £3/day on more than £2,000.

New charges for breaching your limit. If this happens, Barclays will charge £5/day up to a maximum of £35/month. It's currently £22 for exceeding the limit for five consecutive working days, up to a maximum £110 per month.

New overdraft buffers. Customers will be able to go £15 overdrawn and not face any fees. Currently, there is no buffer, though some Barclays accounts have interest-free overdrafts.

Paid transaction fees: Currently £8 per transaction, these will be scrapped. The charge comes when a payment goes through which puts you over your limit. The £8 charge for a declined item will remain, though -as now - only one will be charged per day.

Need the offical bits from Barclays.

[wales01man]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

Does anyone think any Bank will do ANYTHING they would lose out on?

[Amethyst]

Re: Barclays to introduce daily overdraft fees that could see customers charged £93 e

An example for a £350 overdraft over 31 days




http://www.barclays.co.uk/CurrentAcc...P1242663274269