Barclays has clarified its rules after a customer was concerned to receive a letter about losing a £3,000 allowance.
The saver reached out over X as they were confused to receive two letters in the same week about changes to their account.
They said one of the letters informed them Barclays was “removing my £3,000 overdraft because I’ve not used it in 90 days, and I might not qualify for it to apply today”.
They voiced their frustration as they had had the overdraft allowance since they were 18 – 40 years ago.
But they then received a second letter from the bank “saying one of the business accounts (that has an income of only £89 per month) had pre qualified to borrow £2,900”.
The customer went on to say they have a six-figure income with an “excellent” credit score so they were bemused as to why their overdraft had changed.
Barclays responded, expressing their sympathy at the person’s frustration. The bank said: “As a responsible lender, we make sure that our lending decisions will not put customers in a bad financial situation, and this is why we regularly review affordability, and financial credit history from different credit reference agencies.”
The group encouraged the customer to call the bank on 800 800 300 to find out “the next steps and whether this decision can be overturned”. The customer said they would give them a call about the matter.
Barclays customers are encouraged to ensure they have enough funds in their account to make any payments without going over their arranged overdraft limit.
Advice on the group’s website states: “If you want to make a payment that would take you over your arranged overdraft limit, we can refuse to make the payment.”
Customers can ask the bank to change their arranged overdraft limit to a lower amount that is in line with or below their current overdraft balance. If you want to remove your overdraft limit entirely, you will need to pay back any amounts you owe.
It’s also important to note that when making a payment, you need to have the funds in your account to cover the payment at 3pm on the day the funds are due to go out.
Barclays explains: “The money needs to be immediately available to use, so you can transfer money from another account using mobile, online, telephone banking, or you can pay cash over the counter at a branch.
“If there isn’t enough money in your account, we will always try and return the payment to help you avoid going into an unarranged overdraft.”
