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

[Amethyst]

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

Oh and I do think it is a good thing for the middle upper income customers. I tend to look at the bottom up.

It does give customers a choice if they want DD's overlimit to go through or bounce back. If they chose them to bounce they are charged £8 per item plus the late payment/bounce fee from their mortgage provider or whatever - if they chose to have them paid through with this personal reserve then they are charged £22 for up to 5 items within the PR limit IF they repay it within a few day, as well as not having the Late fees from mortgage provider etc or having to rearrange payment.

[Ladidi]

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

Amethyst I bank with Barclays as soon as I receive this so called information I will scan it and post it on here so everyone can see the nitty gritty of what it is they are offering. I'm willing to bet they will paint this as the best picture in the world untill you get to points of what you cant see to read clearly and thats where all the hidden costs are!!

I have to go and make tea now so I will be back later.

[Paule]

Barclays approach to overdrawn accounts

Barclays approach to overdrawn accounts

explaination from their site

PDF Attached

[Amethyst]

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

Thanks Peeky xxx

[Amethyst]

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

These are the bits off the PDF.

[EXC]

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

Today, 11:18 #3 (permalink) zootscoot
Moderator



Join Date: Jun 2006
Posts: 6,788



Re: Barclays - £8.00 charge announcement
Interesting under the present charging regime there is no unauthorised fee but now they are introducing a fee of £22 for every 5 days that you use the reserve which is well above that charged by either banks eg NatWest charge £28 per month.

Under the present charging system customers are £30 paid referral upto a max of 3 per month and £35 for unpaid item upto a max of one per day.

Under the present system the maximum charges a customer could incur assuming they had one unpaid item charge each working day would be £790 per month.

Under the new system the max a person could be charged would be £930 per month although granted they would have to have five transactions per day within the reserve. It seems this is just another way of repackaging the charges in an attempt to fool the customer.






Today, 12:20 #5 (permalink) zootscoot
Moderator



Join Date: Jun 2006
Posts: 6,788



Re: Barclays - £8.00 charge announcement
Mmm its not at all good.

Also it will be pretty hard to argue that this reserve facility is not a service so the hefty £22 for 5 days would not be challengeable. The £8 transaction fee is probably on the upper limit of what is regarded as fair because they are subsidised by the service fee. So no clear cut case making the risk of challenging such charges greater. A sneaky way of bringing the charges within the law and packaging it as being of benefit to the customer.

You do get the option to opt out of the reserve. It would only pay to have the reserve facility if you were to have more than 2 transactions in excess of your limit in any five day period.
__________________



Today, 13:34 #7 (permalink) BankFodder
Administrator
The Consumer Action Group



Join Date: Jan 2006
Location: We are trying to fund a test case. Please help.
Posts: 7,415



Re: Barclays - £8.00 charge announcement
Yes, I gave a quote to the BBC that we cautiously welcomed the new charge - but I think that I have rather jumped the gun!!

[Amethyst]

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

Shall we do 2 £60 transactions over 12 days then ? lol. Cost £66 etc etc

[Amethyst]

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

Oo good stuff i was tyring to look but couldnt get in lol.

[Amethyst]

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

Top 10 FAQs - Reserve - Current account - Barclays



1. What is a Reserve and a Reserve Usage Fee?

2. How does this affect my current agreed overdraft?

3. What is a Returned Transaction Fee?

4. What is a Guaranteed Transaction Fee?

5. Do I have to have a Reserve?

6. How will I know what my Reserve Amount is?

7. If I exceed my current overdraft limit by a very small amount will I incur the same Reserve Usage Fee?

8. How will I know if I have gone into my Reserve or incurred a fee?

9. If my balance goes into my Reserve during the course of the day, but my balance is back within my overdraft limit (or back in credit, where I don’t have an overdraft) by the end of the day, will I be charged?

10. If I have lots of payments on the same day and these take me over my Reserve Amount, which payments will you return?



1. What is a Reserve and a Reserve Usage Fee?
Reserve is designed to prevent transactions being returned unpaid when you have exceeded your agreed overdraft limit or you go overdrawn. Even if you don’t have an overdraft limit we’ll continue to make payments up to the amount of your Reserve. No interest is applied on the balance within your Reserve but a Reserve Usage Fee of £22 is charged for each five consecutive working day period when you use the Reserve.
No interest will be charged on the Reserve. 0% EAR† typical. The Reserve is repayable on demand. The maximum Reserve is £2500, subject to status.

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2. How does this affect my current agreed overdraft?
Your agreed overdraft limit does not change and you will pay interest on balances within your overdraft limit.

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3. What is a Returned Transaction Fee?
A Returned Transaction Fee of £8 per item is incurred when a transaction is returned unpaid because there are insufficient funds in your account. This includes your agreed overdraft and/or Reserve Amount.

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4. What is a Guaranteed Transaction Fee?
Where a payment is guaranteed (e.g. it’s backed by a cheque guarantee card) but it results in you going overdrawn, exceeding your overdraft limit or Reserve Amount, we’ll make the payment but you’ll incur a Guaranteed Transaction Fee of £8 for each transaction.

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5. Do I have to have a Reserve?
No it’s optional. You can opt out at any time, by post (an Opt-out coupon is included in the mailing pack sent to qualifying customers), by telephone or in one of our branches. If you change your mind and decide to opt back into Reserve at a later stage, eligibility for a Reserve and your Reserve Amount may vary.

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6. How will I know what my Reserve Amount is?
You will receive a letter informing you of your Reserve prior to it taking effect. Your Reserve Amount will appear on your monthly statement, and can be found by logging into Online Banking from 18 August 2008. We can also tell you what your Reserve amount is when you call us.

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7. If I exceed my current overdraft limit by a very small amount will I incur the same Reserve Usage Fee?
If your balance goes into your Reserve you’ll have to pay the Reserve Usage Fee.

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8. How will I know if I have gone into my Reserve or incurred a fee?
A letter will be sent within three working days after your balance enters your Reserve. The letter will tell you when the five consecutive working day period ends, the fee charged to your account and confirmation of your Reserve Amount. We will also write to you when you incur a Returned Transaction Fee or Guaranteed Transaction Fee, with details of the transaction.

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9. If my balance goes into my Reserve during the course of the day, but my balance is back within my overdraft limit (or back in credit, where I don’t have an overdraft) by the end of the day, will I be charged?
No. You will not incur a Reserve Usage Fee if your balance does not exceed your overdraft limit (or, where you don’t have an overdraft limit, your account is in credit) at the end of the working day.

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10. If I have lots of payments on the same day and these take me over my Reserve Amount, which payments will you return?
We’ll ordinarily seek to return the payments in a way that minimises the number of returned transactions and the fees you’ll pay, while ensuring that your account remains within your agreed limits.

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† EAR means Equivalent Annual Rate

[Amethyst]

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

ah haaa got ya

5. Do I have to have a Reserve?
No it’s optional. You can opt out at any time, by post (an Opt-out coupon is included in the mailing pack sent to qualifying customers), by telephone or in one of our branches. If you change your mind and decide to opt back into Reserve at a later stage, eligibility for a Reserve and your Reserve Amount may vary.

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RIGHT - OPT OUT rather than OPT IN - uhhh oohhhh



someone get the report saying you shouldnt do opt outs pls

[enaid]

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

Barclays to make banking simpler and clearer
29 May 2008
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.

[Amethyst]

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

I hope they have had the leaflet and info being sent in June looked at under PIL....this opt out bit worrys me - people wont read past the ooo look extra overdraft and reduced fees to £8 bits....how many will send back the coupon, phone the call centre or visit their branch to actually OPT OUT of the reserve ??? It needs to be an opt in not an opt out. Its counting on people not opting out.

[Froggy]

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!!!

I am currently on page 2 of my reading of this so my apologies if this has been said. The above has stated "for those who are eligible". What does that mean? Will that mean for those who continue to exceed their overdraft facility? Or is this for those that do not use their overdraft facility and maybe exceed it once or twice a month?

The other issue I should point out is FASTER PAYMENTS......it has begun and by the time that the changes will be implemented, the likelyhood is that Standing Orders will already be on this system.
I have highlighted Ladidi's post because I believe that it needs to be read again.

[Budgie]

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

Hmmmm,

I prepared a nice long post to go on here but will hold back on it for a while.

One thing which isn't clear and I wondered if anyone can clarify ( with definite proof please ).

If a Customer opts out of the Personal reserve scheme.
How will they be charged if they exceed their overdraft limit or go into an unauthorised situation after August 18th ?

I can't find it actually written anywhere.

We are all assuming that the Customer will be just charged the lower £8 for each failed transaction and nothing else. ( Well other than interest on any overdrawn amount if those £8 charges caused the account to go into an overdrawn situation. )


I have my doubts !!!!!!


Budgie

Reason for my doubts ---- Usually if you opt out of something you remain with the existing conditions that your account is governed by !!!!!!!!!!
It may be that the £8 charge is actually linked to the Customer opting IN to the personal reserve scheme.
Someone needs to call Barclays for clarification if we can't find the answer on their website.

[enaid]

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

Thats why I posted that "Barclays make Banking simpler and clearer"
Must have not made it very clear before IMO, also looks like we were over charged before.
I can't for the life of me think where I have heard that before lol.
Thing is, it aint that simple even now is it? well not for us simple folk :tinysmile_twink_t2: