December 20th 2024.
Did you know that there are more than 20 million Barclays customers in the UK? That's right, over 20 million people in the UK have a Barclays account. However, it seems that many of these customers are unaware of an important policy enforced by the bank. Recently, a customer named Alex Williams shared his experience on social media. He received a letter from Barclays informing him that his £3,000 overdraft, which he had for 40 years, was being "removed" due to lack of use. On the same day, he also received a second letter stating that one of his business accounts had been pre-qualified for a loan of £2,900.
It's understandable that Alex was confused and frustrated by this sudden change, as he has a six-figure income and a perfect credit score. He took to Twitter to express his confusion, and it turns out he's not the only one. Other Barclays customers, such as Andrew Six and @kappacino, have also had their overdraft facilities removed without warning or explanation. Andrew, who has been a Barclays customer for over 30 years, was shocked to find out that his overdraft was being removed because he hadn't used it in over 12 months. He even mentioned that he is now considering switching banks.
When asked about these changes, a Barclays spokesperson explained that they review all personal arranged overdraft limits at least once a year to ensure they are appropriate for the customer's financial situation. If the review suggests that the limit may be too high, they may propose reducing or removing it. This is part of their commitment to being a responsible lender. The bank also recommends that customers give them a call if they are unhappy with any changes to their overdraft.
But this is not a new policy. These annual lending reviews have been in effect since 2021. On social media, Barclays clarified that if an overdraft is not being used, it can be taken away due to it no longer being needed. They also take into account additional lending and other factors. However, if a customer feels that they are able to afford their current limit, they can appeal the decision. They will be given 48 days' notice of any changes to their borrowing and can provide additional information to confirm their income and expenditure during this time.
If the appeal is rejected, the customer will be advised on next steps. But it's important to remember that overdrafts are not always the best option. As Money Saving Expert founder Martin Lewis points out, they can be considered "danger debt" due to their high APR, which can be twice as much as credit cards. He advises people to prioritize paying off their overdrafts before other debts.
Have you had a similar experience with your Barclays overdraft being removed? Share your story in the comments below. And if you do find yourself in this situation, don't hesitate to reach out to the bank and see if you can come to a resolution. It may be a bit of an inconvenience, but it's ultimately done to protect you from potentially unaffordable debt. Your financial well-being should always come first.
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