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

[Budgie]

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

[quote
Now do Barclays have to submit these new terms to the OFT for consideration of fairness ?[/quote]

Yes of course, they will be subject to a test of fairness in accordance with UTCCR1999.

[Amethyst]

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

Of course - will this further delay the PCA is kind of what I mean

[Budgie]

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

No I don't think so, the new charging scheme doesn't come into play until August 18th. Some of the new accounts are actually available from next week so it will be interesting to get hold of the T+C's and have a look. Presumably they will have to then reissue them again with modifications come August 18th.

Important thing to remember is that Barclays were one of the naughty four, whose terms were judged by the Bank to not be totally in PIL.

Obviously it's worth watching out for how the other Banks respond to Barclays moves today. But I suspect first moves will now come from the other three naughty ones, HBOS, Clydesdale and Abbey.

LOL

Budgie

[argentarius]

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

I do think if you only go over your overdraft once a month for a couple transactions that stay within your personal reserve, and pay the money back in within the 5 days, then it is a good deal. You'll pay £22 as opposed to £70 paid transaction fees.

Indeed, that's what I was trying to get across. It's not a bad deal for everyone. Surely a large proportion of people only go into their unauthorised overdraft at the end of the month, and they will incur far less in charges than before? Tanzarelli also refers to people in this situation, and I agree.

I know that other posts refer to the situation of people who don't have money to move "from elsewhere" as I said. Obviously "from elsewhere" includes your next pay packet, but some people can get money from relatives/friends/whatever to cover a couple of days' shortfall if they choose to do so and they have people who will help them out. They could even use one of those evil "payday loans" companies, if they felt it was cost-effective to do so, to prevent another £22 + however many £8 transactions accruing.

Regarding comments about "opt out" rather than "opt in", I don't really agree. Effectively Personal Reserve is just codifying the "shadow limit" arrangement which most banks already operate. It's not making things worse for many people. All changes to current account Ts & Cs are "opt out" as in you are deemed to accept them if you don't close your account, so why should this be any different?

Regarding the suggestion that Barclays are doing it to make more money, I don't see it. OK, those with 5 or more transactions per day will pay marginally more than before, for each day when they have 5 transactions or more. But how many people seriously have more than 5 transactions per day on average? I would suggest very few. Anyone who has all their DDs set up to go out on the same day should have that day set up as their pay day or within a few days after - scarcely the most likely day for them to be in excess of both their agreed overdraft and their personal reserve. But notwithstanding that, if they are all on one day we are only talking about a difference of £5 in total charges in respect of those paid items in these unlikely circumstances.

I don't really understand comments about the "temptation" of a personal reserve, given that shadow limits already exist in any case and customers can already spend beyond their authorised overdraft limit (if they have one). Nothing has really changed apart from the amount of the shadow limit being disclosed, agreed, and explicit rather than hidden and implicit. Surely transparency is best?

BTW for the avoidance of doubt I don't have anything to do with Barclays and indeed don't bank with them (although I do have a Barclaycard).

[Paule]

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

I have an account with Barclays and this would work for me.

Which probably means that it wont be available to me, but if i get any info through the post i will put it up

[Amethyst]

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

Regarding comments about "opt out" rather than "opt in", I don't really agree. Effectively Personal Reserve is just codifying the "shadow limit" arrangement which most banks already operate. It's not making things worse for many people. All changes to current account Ts & Cs are "opt out" as in you are deemed to accept them if you don't close your account, so why should this be any different?

Because this is, when it comes down to it, an additional credit limit, at a cost. Yes you have the choice whether to use it or not. But that choice should be you want to use it.

I'm still unsure though whether this is something that, once you have Personal Reserve set up on your account , you have to call in/go to branch to activate it each time and if you don't your transactions get bounced, or if the transactions that take you into the PR would automatically trigger it. I think that needs to be clearer.

If its a call in then I'm happy - if its automatically triggered then I think a lot of people will find it a shock at the end of the month to have had a couple of £22 taken from their account. If you just fall into it by a few pounds and don't realise because you havent had to physically activate it then it sits there within the PR limit for a couple weeks or whatever, then rather than having your single £8 transaction fee for it bouncing (which is the bit which will be in big letters at top of the new T&Cs she says very cynically) you get £44 fee for using the PR.

Do you see what I mean ? Not great at explaining I know.

[Amethyst]

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

I don't really understand comments about the "temptation" of a personal reserve, given that shadow limits already exist in any case and customers can already spend beyond their authorised overdraft limit (if they have one). Nothing has really changed apart from the amount of the shadow limit being disclosed, agreed, and explicit rather than hidden and implicit. Surely transparency is best?

I do agree, and now will probably be accused of not trusting people to manage their money, but if you are in shtuck and know u have the use of this extra £250 or whatever over your limit, and the DCAs are hounding you or the bailiffs on your doorstep, you are going to use it aren't you. Then think about paying it back, and the charges, afterwards. Then its the circle, and you are living in your personal reserve and its costing you £22 every 5 days and theres no way back.

It really does depend who and how they allocate it being offered and the amounts they allow.


I would still recommend people on lower incomes or in financial difficulty to OPT OUT of the personal reserve - and just take the £8 returned/guaranteed payment fees instead. (if indeed thats how it works which is how it appears and if so then yes it is fantastic news in my book)


If they had done it WITHOUT the personal reserve I would be over the moon.

The personal reserve i am very wary of at the moment with the information we have. But like i said before I am looking at it from the people who are in the crappiest financial situations and i dont want people being hoodwinkled into more debt.

[Amethyst]

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

They could even use one of those evil "payday loans" companies, if they felt it was cost-effective to do so, to prevent another £22 + however many £8 transactions accruing.

Sorry Argie but nooooooooooooooooooooooooooooooooooooooooooo. And I'm glad you said evil because they seriously are. i do get where you are coming from but I would never recommend a payday loan to anyone.

[Ladidi]

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

Hi Froggy,

In reply to your question, "Who is elegible" This is Barclays answer to this..

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).


IMHO I would harber a guess at those who Barclays deem to be profiteering customers!!!


Something else that I found, I thought was also not picked upon..


The spokeswoman added that customers would receive advice to move to a more suitable account if they repeatedly triggered the five-day Personal Reserve, at a cost of £22 each time.

Barclays will be keeping an eye on those who repeatedly use their reserve and will look at ways IMHO to remove this from them and put them onto an account which make them more money e.g £8 per transaction so in effect they are not going tobe helping anyone but themselves in another flash in the pan lets get more money from our customers. So imagine as I said before someone on benefits or low paid who used the reserve for a bill or work or kids uniforms etc for the sake of borrowing £250 and they dont know how to get themselves back up again, th ebank will remove them the account they have to one they deem suitable for their needs..More like Barlays needs!! How does giving someone something, allowing them to use it and then make them pay £22 for this priviledge each time and then have them take it away because they use it too much help them in the first place???????? The customer has used the money had to pay £22 for god knows how long 6 months 12 months depending on how the staff get out of bed that day or even the computer system after all thats how all of their decisions are made these days, determine taking away something from a customer expect them to repay this if they are continually in what was offered to them..Are they going to do the same as they do with overdrafts when they remove them? and demand that this is repaid within so many days? and if it is not hit them with more charges at £8 per time until this is repaid? Lots of questions I think need answering, and haven't I think.

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.

[Froggy]

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

so I am assuming that the OPT OUT option that amethyst mentioned is not actaully going to happen because there will be a degree of what has been called "informal" OPT IN ie it happens and therefore the bank AUTOMATICALLY opts you in. No manual intervention on this one.

[TANZARELLI]

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

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.

Well thats the basic bank accounts out of the equation then for starters, so how do they fair within this new repackaged regime?

Will basic account customers who are not entitled to any OD simply be charged £8 or £35 as per now?

Lots of questions LMAO.

[Budgie]

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

Here are the Terms and Conditions which have appeared on the Barclays website this morning.

[TANZARELLI]

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

Just gonna chew these over and then spit them out later.

[LuggerBugs]

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

If you draw against a sum credited to your
account, such as a cheque, that is subsequently
returned unpaid, then if the reversal of that credit
causes your account to exceed any of its limits,
you will be charged a Reserve Usage Fee or
Returned Transaction Fee, as appropriate. You will
also be expected to make an immediate payment
into your account in order to bring it back within

your limit.

What the FECK is the point of this? If you have the funds available to immediately make a payment to cover that, then you would never have been in the situation where they have to fail the transaction in the first place?

At least it seems to say that the fee for a failed payment will now be £8. £30 less that I'm currently paying with RBS. Or rather WAS, before I told them to feck off. In fact, I can't wait to see how RBS respond to this. :tung:

[LuggerBugs]

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

"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."

Really????