To Reserve or not to Reserve, that is the question...

[Bookworm]

So, after a bit of a discussion here about what do you get charged if you are opted-out, I phoned Barclays and a chap told me all. ;-)

 

To recap:

 

OPT-IN:

 

This is the default mode that was introduced back in the summer of 2008. Unless you told them otherwise, you were automatically opted-in. (If it comes as a surprise to anyone reading this, I suggest you check your account very quickly!)

 

The Reserve account works in 3 tiers:

 

You have your normal bank account limit/overdraft limit. Call it A.

Then you have your Reserve, which amount was set then. Let's say it's £100. Call it B.

Then you have the going over the Reserve space, call it C.

 

A charges: £0 + interest.

If you go into B, you get charged £22 for a 5 day usage period. If you are not back within A after the 5 days, you get charged another £22, and so on...

If you go into C, you get charged the B fee, PLUS £8 per transaction bounced or authorised, up to a maximum of 5 transactions a day.

 

OPT-OUT:

 

You read your paperwork, you want nothing to do with it, and you told them so, so you're now opted out.

Your 2 tier system works like this:

A: £0 + interest.

B is your unauthorised overdraft of before. The difference is you used to have an (unknown to you) threshold. Barclays would pay transactions up to that unknown level and bouce things after that. Now they will bounce everything and charge you £8 for it, unless they have to pay it (guaranteed cheque transactions, and of course their own charges!) for which they will also charge £8.

 

Are you confused yet? :-| Yes, this is Barclays version of transparency and clarity.

[tendogs]

They're trying to recover some of the money they couldn't get from me as a result of their non enforceable credit agreement

[saintly_1]

That makes it as clear as mud .............

 

Ok I have an account with Barclays whish has an O/D limit on it when we get our statements the reserve shows as 0 ...... does this mean that we have opted out or that we havent but they havent given us a reserve .....

 

Fortunately or unfortunately we havent gone over out overdraft since this was brought in to test the reserve amount

[Bookworm]

That means you have a reserve of £0. Yes, I know.

 

Unless I am very much mistaken, that would mean that should you go over, you would get charged the £22 fee (B) + the £8 for going into C.

 

I suggest you opt out ASAP!!!

[Mr lex]

I have a reserve of £200 on top of my overdraft, I went over it once for £15 and took the £30 charge £22+£8.

 

I called in to my branch with my April 2007 statement showing a 'credit' from Barclays Legal and Lit on it and the charge was refunded as a GOGW.

 

I haven't been over my reserve since, thank God, but I don't think they'll do it again. I may have to try soon though, three kids birthdays in two months and two of those 21st's

[yourbank]

Mr Lex, you can cancel the reserve. As Bookworm and myself have found out, if you go over any agreed limit the £22 does NOT apply. Think everyone should opt out cos it saves £22.

[Bookworm]

But this is where I am worried. WHY are Barclays doing this? Surely it's a no-brainer that as the word spreads, more and more people will opt out thereby saving themselves the £22 charge? Or are they really relying that much on people's inertia?

[yourbank]

I think that the initial misinformation, that may have flooded about could have caused this. It's definitely inertia and lack of information that is the cause. Had we not debated it on the other thread, we would be none the wiser.

[Bookworm]

Ok, but in that case, wouldn't you agree that they are handing us the stick to beat them with to them reclaim those charges? I mean, transparency, PIL, no hidden charges etc... not to mention holding people to terms they haven't been made fully aware of and the different options.

 

It is typical that when I phoned this morning, the guy launched into the Reserve spiel and would not tell me about the opt-out charges, even though I asked him 3 times. I had to really insist and go back to that before he would tell me.

[yourbank]

Ok, but in that case, wouldn't you agree that they are handing us the stick to beat them with to them reclaim those charges? I mean, transparency, PIL, no hidden charges etc... not to mention holding people to terms they haven't been made fully aware of and the different options.

 

It is typical that when I phoned this morning, the guy launched into the Reserve spiel and would not tell me about the opt-out charges, even though I asked him 3 times. I had to really insist and go back to that before he would tell me.

 

That might be 'helpful banking'......oops wrong bank isn't it

[thekat1979]

So, no charges if you opt out, but no invisible 'buffer' either? So how much do you get charged for going, say, five pounds over your OD because of their charges?

 

Don't get me started by the way, my charges took me NINETY pounds over my personal reserve - they took it all in one go - last Thursday, started getting calls from Barclays Saturday which I answered Monday, where they promptly took my Reserve off me.

 

Bookie - you've seen their defence to the Reserve charges - they've made no real changes as far as I can say other than the addition of a paragraph which just changes the dates (i.e. from mid August this is what we did).

 

My AQ is in in the morning, with a draft order for 14 days to produce their goods. I wonder what they'll turn up with.

[kennyh]

So we go after them in the normal way - mind you I'm not sure what's normal anymore given the apparent lack of clarity surrounding the "charges are lawful/unlawful for some banks in some years". Still, suppose we still proceed on level of charges and go down the "show and tell" route?

[The abused]

Barclays in their wisdom decided to transfer the OD on my business account and debit my current account with it due to them interpreting the account being dormant. I had a standing order in the business account and sent a new mandate for a lower amount. I was told (letter) that some accounts standing orders are not available so I left it at that. The account was in arrears by about 500 pounds at this point. To my surprise The buggers had been debiting my account with £35 each month for 6 months and adding interest, About £900 was debited to my current account, So a couple of times recently I have gone into my £150 reserve fee at £22 a time, can I claim for unfair charges even though the majority of the debt came from a business account

[gaz2006]

I Had Overdraft Of 500 They Changed Account To Reserve I Never Received Letter Or Anything I Was 492 Over Charges Took Me To 501 The The Started Charging £22 Etc I Asked For It Back Said I Never Asked For Reserve Asked For Authority They Said There Wasnt One . I Said They Have No Authority To Change It And Told Them To Revert Back To Non Reserve . They Said I Had To Make Appt To Do That I Said If They Pay Me My Time Off Etc So Now Debt 1030 All Made Of These 22 Pound Charges They Have Had 3 Lots Of Debt Collectors After Me And I Now Found They Defaulted Me In Feb 2009 . The Debt And Their Charges Have Always Been In Default Surely They Are Breaking Banking Code As Sum "n Dispute " And Also Data Protection By Putting Default When In Dispute And Passing To Third Parties . How Can They Do All This And Get Away With It . Ive Had Letters And E Mails Never Answered They Ignore My Requests And Default Me

[Keasby]

Hi there- got a shock the other day as I phoned up to check a few things and found out I was not £2100 OD (on a £1700 OD). Can I opt out to stop these £22 charges accruing, then pay the difference off a bit at a time, or do I need to pay off the reserve then opt out? The polite lady at the call centre was somewhere just below useless when it came to info.

[kennyh]

Hi there,

I'm sure Booky or YB will confirm but don't we just go after 'reserve fees' in the normal way?

[kennyh]

Bump!

[slick132]

Hi Peeps,

 

This Sticky is for general discussion about the Reserve Fees.

 

To discuss detail of individual cases, start your own threads in the Barclays forum.

 

Keasby - Opting out of the Reserve System should be done in writing if you decide the old charging system may be cheaper for your circumstances. You should be able to reclaim these old style charges as done before.

 

However, because Barclays don't want you to do this, they may withdraw any O/D facilities, meaning you'll get charged less, but more often.

 

KennyH - Reclaiming Reserve Fees is pretty much untested so far. In theory, they should be reclaimable now, regardless of the general Stay on claims, because they were introduced before the OFT case is over. Keep an eye on Bookies thread as her case is with the FOS now.

 

Another pointer is that Barclays have refunded Reserve Fees under the Hardship Rules, which they wouldn't do if they thought the fees would stand up to close scrutiny.

[kennyh]

many thanks slick - I'll post how it goes; begins tomorrow.

[mich5248]

well just found this by accident and i could be here all day on the subject of barclays. I didnt know anything about this reserve thing and had asked for it to be removed at least five times now and have been to it can not be removed. I found out about the whole thing when my joint account Which i use to pay my dads bills) went overdrawn by £20 for wait for half an hour!! this was because our local branch decided to change its opening hours without letting us know so when i went to pay in cash they were closed. By the time i got home and done an on line transfer i was over their cut off period so they classed the credit as the next day. Got the letter to tell me i owed £22 and i was irate rang them and they said tough i do not qualify for a refund its my own fault. It would have only cost me £8 to bounce the payment and as its coming to the end of its life anyway it wouldnt have bothered me if they had, i even said despite the fact it was their fault i was happy to pay the £8 but not the £22 fell on deaf ears.

 

It gets better though. I later had a sales guy in at work trying to get me to change to their business banking (as if) and he said if i moved my business account over i could have a designated account handler and that they would get the charges written off which just goes to show they can if they want to.

 

Needless to say i didnt take the business account and ended up paying the £22 charge but the reserves are still there even though i have asked for them to be removed.

 

The miracle of banks!!

[kennyh]

mich - open your own thread and get some sound advice; sounds like you could do with it