Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

[Guest]

Re: Dramatic About Turn As Barclays Cuts Overdraft Charges

Does anyone really believe that this is soley due to a "...breakthroughs in its handling systems, with a far greater automated service" and nothing whatever to do with the OFT case?

What utter tripe.

[Budgie]

Re: Barclays cuts fees for overdrafts

Am off up the High Street to do some investigative work.

There are two nice blonde sisters who work on the Customer information desk in my local Barclays and a cracking redhead in the Halifax LOL.

Oh well it's hard work but someone has to do it.

Budgie

[enaid]

Re: Barclays cuts fees for overdrafts

Am off up the High Street to do some investigative work.

There are two nice blonde sisters who work on the Customer information desk in my local Barclays and a cracking redhead in the Halifax LOL.

Oh well it's hard work but someone has to do it.

Budgie

PMSL Is this a bird? or is it a Bond in disguise? lol

Does he like his millet shaken not stirred?
His Cuttlebone well hung?

Time will tell lol

[Amethyst]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

Channel 4


Barclays has announced it is to "significantly reduce" its overdraft fees, in a move that could rubbish industry claims over the "true cost" of bounced payments.


The bank said that from August 18 customers would have to pay only £8 for a returned or guaranteed transaction - far lower than present charges that can be as high as £35, but have been described as fair by current account providers.


Barclays will also replace unauthorised overdrafts with a "Personal Reserve" which users can access for a charge of £22. Customers opting out of having the buffer zone will see payments over an agreed limit bounced, but will still only have to pay the reduced £8 charge.


Barclays said that it had been able to reduce its charges as a result of breakthroughs in its handling systems, with a far greater automated service.


But it is likely to be seized upon by campaigners who have long claimed that fees of up to £35 are unfair and does not represent the actual cost to banks - which they believe could be as little as £2.50.


In April, the Office of Fair Trading won a High Court ruling over the issue, when a judge said fees were subject to "unfair contract" rules.


It paves the way for a further hearing to decide whether charges are unfair and, if so, what a fair charge should be. Banks have since lodged an appeal over the High Court ruling.
Barclays' £8 charge could lead to other banks scrambling to play catch up in an industry that faces being forced to lower fees.


It is part of a new overdraft service for customers that will also include the launch of "Personal Reserves" on August 18.

These buffer zone, typically of around £250, can be used as often as the customer needs without repeat charges. But if a customer fails to pay off the additional balance within five working days, they will be liable to pay another £22 fee.

[Amethyst]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

right all storys are coming the same from the feeds - cant find the BBC one yet - or anything on Barclays sites yet

[Amethyst]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

The Barclays Press Release
Barclays.com | Media Centre | News Releases | Barclays overhauls current accounts to make banking simpler and clearer for consumers

29 May 2008

Barclays overhauls current accounts to make banking simpler and clearer for consumers


Barclays is responding to customer feedback by overhauling its current account offering, replacing the unauthorised overdraft with a fundamentally new approach to overdrawn accounts, which significantly reduces the charges for customers who go beyond their agreed overdraft limit.

In addition, from 2 June 2008, Barclays is simplifying its range of new current accounts for personal customers, offering customers a choice of accounts which includes an interest-bearing current account and a new packaged account, whilst reaffirming its commitment to keep free in-credit banking as an option for customers.

New overdraft service
Personal Reserve is designed to act as a safety net for customers who exceed their agreed overdraft limit if they have one or go overdrawn if they don’t. This gives customers the peace of mind that payments will be met, putting the customer in control of their finances.
The launch of ‘Personal Reserve’ on August 18th will radically change Barclays approach to overdrafts and will differentiate the bank from the rest of the industry by replacing the unauthorised overdraft with a completely new structure. Personal Reserve significantly reduces charges and gives customers certainty about when their payments will be met and when they will be bounced.


For a single flat fee of £22 any customer who uses their Personal Reserve will have access to it for five working days. During this time a customer can use their Personal Reserve as many times as they wish and provided that they do not go beyond their Personal Reserve amount payments will be honoured.

Individual Personal Reserve amounts will be communicated to eligible customers between June and July. The average Personal Reserve amount will be £250. Customers will only pay for their Personal Reserve if they use it and all existing customers will be given an opportunity to opt out of having a Personal Reserve on their account if they do not want one.

There are no individual transaction fees, no arrangement fees and no interest will be charged on the amount used within Personal Reserve.
Payments which go beyond the Personal Reserve will be bounced, unless they fall into the category of a guaranteed transaction (e.g. a cheque payment guaranteed with a cheque card).

With effect from August 18th customers will pay £8 per item for a returned or guaranteed transaction.

"We have listened to our customers and acted on this feedback by completely revamping our unauthorised overdraft service, replacing it with the new Personal Reserve. Our customers wanted a simple, clear way of managing payments when they go beyond agreed limits. The Personal Reserve gives certainty about when payments will be paid and when they won't, with just two simple, lower charges. Our new approach has been tested with consumers extensively over the last two years and we are confident that our products will promote account switching to Barclays," comments Mark Parsons, managing director of current accounts at Barclays.

Changes to current account range
Barclays is revamping its current account range on June 2, 2008 offering customers a choice of new accounts to fit their individual needs. Accounts range from free in-credit banking to fee-paying accounts with credit interest, interest free overdrafts and additional services. Existing customers will be able to switch into the new range if they wish.
“We are reaffirming our commitment to offering customers the choice of free in-credit banking if that is what they want. Increasingly we are finding that many customers are attracted by the extra benefits and services that are available on fee paying accounts. It is a matter of individual choice,” adds Mark Parsons.
The new account range is:
- Barclays Cash Card Account – no fee, money transmission account (direct debit and standing order), no overdraft facility.
- Barclays Bank Account – no fee, money transmission account (direct debit and standing order), overdraft facility, Personal Reserve.
- Current Account Plus - money transmission account with £3 monthly fee, 3% AER credit interest on all balances (no minimum monthly deposit), £300 interest free overdraft, Personal Reserve, plus additional services such as free extended warranty worth almost £100 in benefits (new account).
- Additions Active – money transmission account with £14 monthly fee, 3% AER credit interest on all balances, £300 interest free overdraft, a preferential overdraft interest rate Personal Reserve, plus additional benefits worth over £680 such as world-wide family travel insurance and breakdown cover (new account).
- Premier Life - same services as Additions Active plus a relationship team and other benefits worth over £1,000, £17.50/£25 monthly fee.
From July 1, 2008, as part of Barclays drive to simplify its current accounts, credit interest of 0.1 per cent on certain standard current accounts will no longer be paid. Research shows customers don’t value it and it is worth on average two pence per week to the customer. Barclays authorised overdraft rate will increase from 15.6 per cent to 17.9 per cent from June 2, 2008, remaining one of the lowest agreed overdraft rates available from the six largest current account providers.
“The
overall package of changes we are making for new and existing customers provides a simple, clear choice and improved value, marking a step change in current account banking in the UK,” adds Mark Parsons.

About Barclays

Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs 135,000 people.
Barclays moves, lends, invests and protects money for over 38 million customers and clients worldwide.
For further information about Barclays, please visit our website http://www.barclays.com.

[Ladidi]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

IMHO, I think with this about turn just as they have all been told by the Judge to give their details and information on their charges/fees whatever they want to call them, so that that the OFT can submit to court what they feel is a fair and just charge and in proportion with the running of an account they have scored an own goal. Because no doubt the Judge will be asking about this and if the OFT have any brains they will also want to raise this so i reckon we could all be looking at repayments, but we may not get it all. it may well end up being everything over and above £8 with the interest due. No doubt all the other banks will follow suit because they will not want to lose their vast income they have been used to and allowed to get away with for years so they will all probably go along with the same amount and similar account structures. Lets face it they dont want the OFT to comeback and state that something much lower woud be better if they can all show good faith by saying ok we agree it has gone on for long enough lets repay this much and still make this much we will still break even at the end of the day!!

[Paule]

Re: Barclays cuts fees for overdrafts

cant find the BBC one yet - or anything on Barclays sites yet

there you go (post 12) lol

Read about it on the Barclays web site :-

http://www.personal.barclays.co.uk/B..._self&site=pfs

[Amethyst]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

Sooooooooooo

customers get an additional ''PERSONAL RESERVE'' for 5 days at a cost of £22 - average reserve of £250 - so if they go over their agreed overdraft - it costs £22 automatically instead of individual charges for paid transactions.

In those five days any transactions take them over the Personal Reserve get an £8 charge per item.

After the 5 days the account has to be bought back within overdraft or every transaction gets an £8 charge.



The 5 days is triggered when first transaction takes you over overdraft.


Sooooooooo.... if all your DDs go out same couple days each month and three go over your overdraft facility into the personal reserve, and one bounces, you will be a lot better off, paying £22 + £8 = £30, as opposed to all 4 bouncing costing £35x4 = £140. Maximum of 5 transactions a day over the personal reserve will be charged £8 for. Everything that takes u over the personal reserve will be bounced and not paid.


That sound about right ?

So if you only have ONE transaction that takes u over overdraft and into Personal Reserve - it costs you £22.


But if you're payments are spread out by more than 5 days then 4 transactions over your overdraft will cost £22 a time. Does it say how often you can access the personal reserve or is it just triggered by a overlimit transaction ?

[Guest]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

Without reading it all - and right now I don't have the time - I would suggest that it has been structured in order to generate, ruthlessly and efficiently, as much revenue as possible for the bank while at the same time appearing to favour the customer.

[argentarius]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

I think it's better than that, Cetelco.

Firstly, it gives customers the choice of having transactions which would take them into unauthorised overdraft declined. This is something which many have stated they want.

Secondly, it reduces significantly the charges for transactions which would take them into unauthorised overdraft - the new £8 charge. This is significantly less than it would cost at present.

Thirdly, it gives a sensible period to get the account back into credit/within the authorised overdraft limit. Five working days is enough time to move money from another account or whatever.

I cannot see how this will generate Barclays more income than their present charging structure; I think it gives far better transparency to the customer of which transactions will, and won't, be paid, and how much they will be charged for those transactions.

[Ladidi]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

Hi all,

I have just had a conversation with Barclays about his nice new reserve they are bringing out.
You only get the reserve if you are eligible for it, if you are not they will tell you how you can acheive this facitlity.
I have a barlays bank account -no fees- overdraft facilty- might be eleigible for a reserve- they are sending out letters over the next 2 months for those entitled.
The reseve works like this..Say you have a reserve of £250 you need to use it on Monday for whatever reason you call up they give you this and deduct the £22 fee off the £250 so you have £228 to use over the next 5 days. If by day 4 you think I will be ok and you have only used £100 of the reserve because you have "x" amount going into your account and you leave £128 in reserve. Your money goes into the account and you repay the reserve upto the £250 same way as an overdraft! OK
Now, say your money your expecting does not go into your account for whatever reason and your past day 5 and you need to have some money for kids to get to school or you to go to work even, you ask for some more money from your reserve and they charge you another £22 for this priviledge so in a total of 6 days the bank has charged you £44 for using the reserve. But if over the course of a month and you use your reserve 4 times as this has to be renewed every 5 days they are going to charge you a total of £88 and if you go over this £8 per transaction!" plus increase in overdraft interest charges!
I think the reserve can be a good thing, but also a bad thing, good becasue if you have a DD to go through your account you cant use this so that it does not bounce BAD beacuse the £22 charge is TOO MUCH and the 5 DAY TIME LIMIT is rediculously too short!! I have made this known to Barclays during my call and the advisor said she would pass on my concerns!!!

[Amethyst]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

Just thought I;d see how it would work in practise if you get paid once a month.



NO OVERDRAFT FACILITY - £100 PERSONAL RESERVE LIMIT


30th PAYMENT IN £1000
2nd MORTGAGE PAYMENT DD (£750) Balance £250
2nd OTHER PAYMENT DD (£200) Balance £ 50
2nd OTHER PAYMENT DD (£75) Balance (£25) -
incurs personal reserve fee £22 Balance (£47)
3rd GUARANTEED CHEQUE (£23) Balance (£70)
3rd GUARANTEED CHEQUE (£40) Balance (£110) -incurs £8 fee (£118)
4th Payment In (£40) Balance (£78)
5th DD NOT PAID (£65) Balance (£78) - incurs £8 fee (£85)
6th CARD TRANACTION PAID (£10) Balance (£95)
7th - fee incurred for being in Personal reserve over 5 days - £22 fee - Balance (102) triggering another £8 charge balance (110)

dont get paid till 30th = personal reserve fees x £88 (4 x 5 days) plus £8 per fee for paid transactions ??? have to check that bit.




So theres 5 Paid items and one unpaid item over one week. Previous cost £175

New cost - £156 - maybe £188 ( depending if the £22 personal reserve fee is classed as a transaction triggering the £8 charge)

[Shazzaw]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

WAHHEYYY!!!

LB quoted in the BBC article!!!!!!!!

http://news.bbc.co.uk/1/hi/business/7425057.stm

Nick Spooner, of consumer campaign group Legal Beagles, said: "This [Barclays' new structure] is unquestionably connected to the OFT test case."

[Guest]

Re: Barclays cuts fees for overdrafts to £8 !!!!!!!!!!!!!

I think it's better than that, Cetelco.

Firstly, it gives customers the choice of having transactions which would take them into unauthorised overdraft declined. This is something which many have stated they want.

Secondly, it reduces significantly the charges for transactions which would take them into unauthorised overdraft - the new £8 charge. This is significantly less than it would cost at present.

Thirdly, it gives a sensible period to get the account back into credit/within the authorised overdraft limit. Five working days is enough time to move money from another account or whatever.

I cannot see how this will generate Barclays more income than their present charging structure; I think it gives far better transparency to the customer of which transactions will, and won't, be paid, and how much they will be charged for those transactions.

Granted, it appears on the surface, to favour the customer but and leaving aside for a moment the individual points you have raised, we are talking about a bank. An organisation that has made money their business. This is a cynical ploy, a publicity stunt and the timing of the announcement alone speaks volumes.

Regarding your three points. How does this give customers a choice regarding which payments are declined? They have no more choice now than before. Your second point is of course correct, but reducing what is already a hugely inflated sum to an equally inflated, albeit smaller sum, should not be so readily congratulated and finally, if people had money to move from "another account or whatever" they would very likely not be in the situation where they needed this facility at all.

It would be churlish of me not to accept that this is a step in the right direction, but to claim this is acceptable in any way whatsoever is at best naive and at worst dishonest.

As a PR exercise it might prove successful but as a solution to the problem of bank charges, it is nothing more than insincere tinkering.