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Mother has a Barclays current account, simple one you know, no overdraft limit.

But, today they have sent a letter introducing a RESERVE service, for emergencies which allows you to get £150 in the red..

For this service they charge £22 for every five days you dip into it.

They say in the letter it is not an overdraft.

The opt-out letter is now in the post, thankyou Mr Barclays :angry:

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Ah I see it was introduced in May. Guess the computer trawled through the accounts and gave my mother a yes <_<

http://www.newsroom.barclays.co.uk/content...mp;NewsAreaID=2

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.

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The reserve idea is a complete con - I've already sent my opt-out back to them.

Outrageous isnt it. Its daylight robbery, for the vunerable, and elderly except they aren't holding a gun at you.

It should be an OPT IN SERVICE .

They fully well know most people in the UK do not open letters from the bank.....

Edited by notanewmember

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Not that I've any reason to 'big up' the Black Horse bank, but Lloyds last month increased my approved o/d if I want to use it.

Up from £650 to £2450 :blink: . I hardly ever go into the red but I wonder if this is almost encouraging me to go o/d.

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Outrageous isnt it. Its daylight robbery, for the vunerable, and elderly except they aren't holding a gun at you.

It should be an OPT IN SERVICE .

They fully well know most people in the UK do not open letters from the bank.....

Which is why most people in the UK deserve to get shafted.

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Mother has a Barclays current account, simple one you know, no overdraft limit.

But, today they have sent a letter introducing a RESERVE service, for emergencies which allows you to get £150 in the red..

For this service they charge £22 for every five days you dip into it.

They say in the letter it is not an overdraft.

The opt-out letter is now in the post, thankyou Mr Barclays :angry:

22 quid for 5 days 'interest' on a 150 quid loan .....the kind of business done by those men who break things if you can't pay. Usually fingers. Says a lot about Barclays and the state of the economy.

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Not that I've any reason to 'big up' the Black Horse bank, but Lloyds last month increased my approved o/d if I want to use it.

Up from £650 to £2450 :blink: . I hardly ever go into the red but I wonder if this is almost encouraging me to go o/d.

The worry is from people who steal your account details, or even people who enter the wrong digits of their accounts when shopping online and money disappears from your account.

I m going to go to Natwest this week to ask my overdraft facility to be reduced.

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I think it should be obvious to all that the reason they are doing this is because the OFT is cracking down on charging people for going overdrawn.

However, this is not a charge for going overdrawn, its a charge for using a "service"... clever hey! <_<

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Absolutely disgraceful strategy by Barclays. Do they think we can't see through this cheap attempt to profit from further indebtedness?

I've opted out.

But the millions of letters that went out all contain name, address and bank account details.

How many of these will be retrieved from dustbins by the identify fraud brigade?

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Errr... you could just throw the letter in the bin (ergo you have "opted in") and then (continue to) manage your account in a proper manner such that you never actually need to use the reserve. This was introduced because people have been moaning about the cost of bank charges, particularly for bounced cheques / returned direct debits etc. Personally I've always thought bank charges are perfectly reasonable, particularly given that these fees (arguably) support the provision of 'free' banking for normal customers (remember the days when banks charged ALL customers for the privilege of maintaining an account? Anyway, the answer was (and remains): don't write a cheque / don't agree to make payments by direct debit unless you've actually got money in your account. End of story.

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I think it should be obvious to all that the reason they are doing this is because the OFT is cracking down on charging people for going overdrawn.

However, this is not a charge for going overdrawn, its a charge for using a "service"... clever hey! <_<

Clever loophole. Its still going to suck in MSE type people even if they call it Certain-death-loan service.

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Errr... you could just throw the letter in the bin (ergo you have "opted in") and then (continue to) manage your account in a proper manner such that you never actually need to use the reserve. This was introduced because people have been moaning about the cost of bank charges, particularly for bounced cheques / returned direct debits etc. Personally I've always thought bank charges are perfectly reasonable, particularly given that these fees (arguably) support the provision of 'free' banking for normal customers (remember the days when banks charged ALL customers for the privilege of maintaining an account? Anyway, the answer was (and remains): don't write a cheque / don't agree to make payments by direct debit unless you've actually got money in your account. End of story.

I would be happy to pay £10 a month if the bank did not indulge in fractional reserve lending. Unfortunately I fear that these would be rare banks indeed.

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I'm used to Barclays being a shower of crooks (I have banked with them for 20 years), but I actually laughed when I read their proposal. Opt-out letter was swiftly returned, and I received confirmation that they have received it, today.

They are still trying get me hooked on a BarclayCard, but after the CEO's comments I will never have one. It was a pure Gerald Ratner moment.

Edited by SMAC67

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thats very sly and cunning- they opt you in by default and you have to send a reply to opt out? is this correct?

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Outrageous isnt it. Its daylight robbery, for the vunerable, and elderly except they aren't holding a gun at you.

It should be an OPT IN SERVICE .

They fully well know most people in the UK do not open letters from the bank.....

This kind of passive selling was abolished for goods in 1971. Why not do it for cases like this? It would be a lot more useful than most NuLabour legislation.

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Hello Mr Smith

We're writing to you to inform you that we are increasing your outstanding mortgage from £89,000 to £189,000.

The extra £100,000 will be deposited into your current account, and is free for you to spend as you wish.

We think you will thank us for this service.

Don't worry, you need not do anything to enjoy this brilliant windfall!

If you wish to opt out [why the heck would you?], please return this letter within 2 days and ticking this box [ ] AND answering this question correctly: What is the volume in cm2 of an olympic sized swimming pool? A: .................

Yours sincerely

Baby Candy Stealer

Edited by notanewmember

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I would be happy to pay £10 a month if the bank did not indulge in fractional reserve lending. Unfortunately I fear that these would be rare banks indeed.

Some classic "Ratner" moments. :rolleyes:

"...cheap because they are total crap ... this pair of earrings is cheaper than a prawn sandwich."

Gerald Ratner, CEO of Ratner Jewellers describing some of his firm's products, 1991 (and ex-CEO 1992 after £500 million was wiped off the share price)

"Hooligans or whatever . very few of our customers have to wear suits to work. They'll be for his first interview or first court case"

Mr David Shepherd, Brand Director of Top Man, on his typical customer, 2001

"People have realised it probably won't be you. You would be lucky to win a tenner"

Dianne Thompson, CEO of lottery firm Camelot, on the chances of winning the National Lottery, 2002

"They're quicker at answering the phone, highly numerate and keen to come to work every day."

Sir Keith Whitson, then CEO of HSBC, on the benefits of using Asian rather than British call centres and thus slighting all his UK staff, 2002.

"I do not borrow on credit cards. It is too expensive. I have four young children. I give them advice not to pile up debts on their credit cards."

Matthew Barrett, CEO of Barclays Bank which owns Barclaycard, 2003

"Agency nurses kill more people than they bloody save these do - it's an awful bloody set-up but we've got to have them."

Barrie Blower, ex-Chairman of Walsall Hospitals NHS Trust, talking to the daughter of a woman who died at Manor Hospital , 2004

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On a £150 "Reserve" usage, doesn't that mean the £22 flat charge is the equivilent to an APR of 1,070% ?!

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Says a lot about Barclays and the state of the economy society.

Institutionalised profiteering and abuse of the vulnerable.

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"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."

Errr, doesn`t this give BARCLAYS peace of mind that it is they who will be getting control of their customer`s finances ?

My recent experiences with the major banks has not been good (see my post on the Natiowide halts ISA transfers thread). Now I read this. These banks are turning into a nasty bunch of b***ards (they probably were before, but now the credit crunch is biting they are showing their true colours).

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Outrageous isnt it. Its daylight robbery, for the vunerable, and elderly except they aren't holding a gun at you.

It should be an OPT IN SERVICE .

They fully well know most people in the UK do not open letters from the bank.....

....its just a way to penalise their customers when overdraft penalty fees get banned.

They probably assume (quite rightly) that many people will be too lazy to Opt out.

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thats very sly and cunning- they opt you in by default and you have to send a reply to opt out? is this correct?

This is how all contract changes work in our legal system.

When the gas or electricity want to up the prices (and break the existing contract) they send you a notice of changes - if you don't respond by the date they specify (usually 28 days later) then you are assumed to have agreed to the new charges. When the DVLA or other government body want to fine you or tax you, they send you a notice, whcih you have a period within which to reject or respond to, after which you have agreed.

Knowing this will save you a fortune.

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