Barclays Reserve Charges

[Debvfm]

Hi All

 

Just wondered if anyone else had found themselves in my current sad financial situation.

 

I have had an account with Barclays since they bought out The Woolwich, and things were ticking along nicely until I lost my job in February. I have in the past dipped in and out of the Reserve but only in an emergency. Since the loss of my job I am permanently into this and all I have paid into this account is:- Housing Benefit, Tax Credits, DLA (for my disabled son) and my carer's allowance. Every month they take at least £100+ per month in charges which makes me even more in debt.

 

I received a call from their debt department offering me a solution.

 

1. To take away the reserve fee and increase my OD to £260.

2. To take £20 a month when I get my child benefit to reduce this.

3. To take their charges in advance so that I would no there would be no more charges for the foreseeable (which is why they offered to bump up OD to £260).

 

I have a nasty feeling they are ripping me off here. Has anyone else experienced this? I would ideally like all the charges back for using the Reserve (over the last 2 years totals nearly £3,000), is there any chance?

 

I know these banks are ruthless (after all they have large bonuses to pay) but surely can they get away with this?

 

Many thanks

Deb

[slick132]

Hi Deb,

 

We have often argued that Benefit money is paid to an individual for specific purposes and that the bank should NOT take their charges. This is known as the Right of Appropriation but the banks often choose to ignore requests that they leave this money for it's intended purpose. See more here - http://www.consumeractiongroup.co.uk/forum/showthread.php?36790-Is-the-bank-taking-your-Benefits-(1-Viewing)-nbsp

 

Also the Article here - http://www.consumeractiongroup.co.uk/forum/content.php?547-Is-your-Bank-taking-your-subsistence-money

 

Given the banks' negative attitude to the subject, you may well be better moving to a basic bank a/c where you can have you money paid in, and use it for the purposes for which it was intended.

 

You'll then have to clear the debt left with Barclays, paying only what you can afford each month.

 

Having said this, the bank also has a duty under The Lending Code to STOP adding bank charges and stop or reduce interest charges when you are in Financial Difficulty with an overdraft. See more about this here - http://www.consumeractiongroup.co.uk/forum/content.php?557-Letter-for-an-application-for-consideration-for-hardship

 

[slick132]

Given the amount of charges they have taken (you mention £3,000), you should certainly seek a refund of all charges made since you were made redundant.

 

If you were in difficulties before being made redundant and the bank was aware of this (or should have been according to The Lending Code), you should seek a refund of charges in respect of any relevant period covered by The Lending Code which came into force in March 2011.

 

[Debvfm]

Hi Slick

 

I have been in financial difficulty for around 18th months maybe a little longer if I am honest. Barclays should have known this from the fact I was continually using the Reserve.

 

I have noticed the body of a letter on one of threads which I will use unless you can think of another? Can I send this normal post? And is it best to send to the E14 address that I have for Barclays?

 

Many thanks for your help.

 

Deb

[Debvfm]

I have today written to Barclays Bank at their head office to ask for my charges back they amount to just under £2500 from March 2011 to date. I have said that I am in extreme hardship and quoted the banking guidelines regarding benefits. Watch this space ......................I will keep you all updated.

[Desperate Daniella]

Hi Deb,

 

Good luck with this. I have yet to total up what I was charged, but in some months it was £22 for every week.

 

At the time I didn't know they couldn't take benefits, because Child Allowance apparently counts as a benefit and they took it all and more most months.

 

I'm not challenging them about it at the moment for various reasons, but do intend to in the future.

 

I hope to hear of your success.

 

DD

[slick132]

Hi Deb,

 

Sorry you got no replies to your questions earlier but the E14 HQ address is fine to use. If you don't want to pay the extra for RM Signed For delivery, take your letter to the PO and get a free Certificate of Posting at the counter.

 

Let us know how they respond.

 

[Debvfm]

Hi

 

Thank you both for your responses. I posted two copies, one to head of customer services and one to compliance and legal department. I hope for a favourable reply. Thanks all.

[Debvfm]

Hi All

 

I had my HB paid in today and needed that to pay my mortgage. Went online and Barclays have REMOVED the £260 overdraft that they agreed with me two weeks ago. I have phoned them but the department that deals with it close at one and no one can help me. They have left me without a penny to feed my children, I don't know what to do apart from weep. Has anyone any idea why they have done this?? I feel sick. Thanks

[Debvfm]

Bump

[slick132]

Hi Deb,

 

The reality is there's nothing you can do until the bank is open on Monday.

 

You can use the time until then to research what action to take.

 

Did you reach any agreement or decision about keeping the £260 o/d which you referred to in your first post.

 

I wonder if the o/d was withdrawn because you failed to make a decision about the a/c while you sought advice here on CAG

 

You can perhaps complain that the bank have treated you unfairly - possibly urgent phone complaints to the FOS and to Barclays HQ. You can also complain that they have taken your HB money or made it inaccessible, leaving you with nothing to pay your mortgage or feed your family.

 

Edited June 8, 2013 by slick132
they've made your money inaccessible, not taken it in chgs

[Debvfm]

Hi Slick

 

Thanks for your reply. The OD was confirmed in writing and I was told that if I didn't agree to it I could write to them. The letter outlined how it would be repaid at £20 per month from my Child benefit money. They have since written confirming removal of the Reserve facility which I agreed to when they agreed to put the overdraft on there. Annoyingly the top of my online banking page states OD but the amount is now only £10.00. I am thinking this is all because I wrote asking for my charges back, perish the thought that one of their fat cats goes without such a large bonus to pay me back!!! They have really really upset me.

[Desperate Daniella]

Deb,

 

I am so sorry.

 

You can't, as slick says, do anything until Monday, but personally I think you should speak to FOS before you speak to Barclays because they'll give you a reference number to quote to Barclays who should then take your complaint more seriously. They snatched money from my account three times as soon as it came in (as an offset because I'd disputed my credit card) and as soon as I phoned FOS and said I couldn't pay my mortgage I got it paid back in within hours. It's a couple of years ago now, but I think FOS actually connected me to someone very senior at customer services. Either that or they gave me a direct line.

 

This is different as they've cancelled the OD and the reserve at the same time, but as they confirmed the OD in writing I do think FOS will help you get the money back. It smacks of spite because you have challenged the charges.

 

DD

[Debvfm]

Hi DD

 

Thanks for your words of support, it has made me feel sick. Money is tight at the moment as I have no job without them doing this to me. I will make FOS my first call on Monday morning. Surely they are meant to be a 'professional' outfit however, I do use that term broadly. It shows my OD being £10.00. I am so shocked words fail me. Excellent timing on their part too what with it being the weekend. Nice people eh?

 

Deb

[Debvfm]

What is even worse is that I have two interviews booked for Monday and now I cannot go as I have no money for fares. How do these people sleep at night is beyond me .............

[Desperate Daniella]

They are complete *******s. They did the same to me on so many occasions, and when I think of the charges ..... All so the people at the top can have another new car, or another luxury holiday.

 

It makes me so mad. When I was growing up someone with a good, professional job earned a good salary but it wasn't so far removed from everybody else. And those of us who don't make that kind of money get penalized at every turn by reserve charges, late payment charges and so on. People who pay a bill late do so because they don't have the money to pay it earlier, and for this they are punished by more charges making the situation even worse, and so it spirals downwards.

 

Barclays are the most complained about bank, and if you continue with your complaint through FOS after the initial call tomorrow then they will have to pay £500 for the investigation. They have backed down for most people on this forum who have complained through FOS but you have to make FOS understand the urgency, and usually they do. Don't agree to fill in a form and put something in writing, as some have done, absolutely insist you must have the money to feed your children, pay your mortgage, and even get to your job interviews.

 

I really think you should open another bank account. I finally got so sick of Barclays I opened an account at the Co-op and do everything there. It's a basic account but it works for me. The Barclays account is still there. They probably haven't even noticed I'm not using it any more.

 

I do hope you can get things moving early on Monday and that you either have time to get to your interviews or can re-arrange them.

 

It is absolutely horrible to have no money, especially at the weekend when you have children. I really do feel for you.

 

Big hug,

 

DDxx

[slick132]

Hi Deb,

 

I'm glad Daniella is here - she has experience of taking the sort of fast action needed to get your money accessible again.

 

Do the best you can to attend the interviews if you think they're good opportunities.

 

[Debvfm]

Thanks DD its nice to know I am not alone. My parents can lend me money but I really don't want to borrow any. I had the foresight to open a basic current account with Nat West yesterday thank goodness as I have a reasonable sum coming to me soon and I did not want Barclays to get their robbing hands on it. I feel so fed up and upset that they could be so calculated about it. x

[Desperate Daniella]

Hi Deb,

 

I'm glad Daniella is here - she has experience of taking the sort of fast action needed to get your money accessible again.

 

Do the best you can to attend the interviews if you think they're good opportunities.

 

 

I think what Slick means is that I am good at screaming and yelling. So is my daughter. I can't imagine where she gets it from.....

[Debvfm]

I will be making the call to the FOS on Monday morning first thing. I assume they open at 09.00am? I will make sure that I explain everything fully to them. I will also stress how urgent and dire my financial situation is. Thanks so much for your support it means a lot. Thanks again.

[Desperate Daniella]

Thanks DD its nice to know I am not alone. My parents can lend me money but I really don't want to borrow any. I had the foresight to open a basic current account with Nat West yesterday thank goodness as I have a reasonable sum coming to me soon and I did not want Barclays to get their robbing hands on it. I feel so fed up and upset that they could be so calculated about it. x

 

I'm so glad you have got another account. They are really nasty and although I got my money back I didn't really want an argument every time some money came in and, to quote you, they got "their robbing hands on it."

 

I know you don't want to borrow the money from your parents, but if they can help you I do think you should at least borrow enough for fares to your interviews. xx

[Debvfm]

Hahaha, I just burst into tears telling my son (he is 20) and he is like I can lend you some Mum. Bless him. He is very laid back about things wish I was I am highly strung to say the least. I want someones head to roll for this x

[Desperate Daniella]

Oh, how sweet of him.

 

I hope someone's head will roll for it too, but I doubt it.

 

If, hopefully, you get the overdraft facility put back in place, their attitude will probably one of great disappointment that they didn't get away with it. Whoever did it won't be punished, they'll get commiseration that it didn't work.

[Debvfm]

They really are heartless souless money grabbing b*****ds aren't they? I am sure I have angered someone with my letter regarding the charges. I will mention this to the FOS too if you think this is wise? Thanks

[Desperate Daniella]

Definitely. You must mention that to FOS because it demonstrates that they are almost certainly being nasty and vindictive.

 

You have a letter confirming the OD and they have pulled it without warning and it must have been because they received your letter. Even if FOS won't actually say they agree with you I'm sure they will see what's going on.