Barclays has issued a warning about its overdraft policy (Image: Google)
Barclays has clarified its rules after a customer was surprised to discover a £200 feature had been removed from their account.
The customer messaged the bank over X saying: “Barclays are removing my £200 overdraft because I’ve not used it for 90 days and I would get it today if I asked for it.
“£10k in my bank but when I had nothing they gave me an overdraft they’ve earned plenty of interest on.”
The Barclays website customers to make sure they have enough funds in their current account to make any payments without going over their arranged overdraft limit.
The advice page states: “If you want to make a payment that would take you over your arranged overdraft limit, we can refuse to make the payment.”
Barclays said in response to the customer: “As a responsible lender, we constantly review accounts and take into consideration any other lending people may have.
“As you’ve mentioned, if an overdraft isn’t being used, we’ll remove due to it no longer being needed.”
How do Barclays overdrafts work?
The annual on overdraft amounts with Barclays is currently 35 percent. There are two types of overdraft, an arranged overdraft and an unarranged overdraft:
- Arranged overdraft – This is where an overdraft limit is agreed with the customer. This allows the customer to borrow money through their current account up to a limit, with interest calculated each day on the overdraft amount. Some of your overdraft amount may be interest-free. There is no interest to pay on any amount over your limit, but this could negatively affect your credit score
- Unarranged overdraft – This is when you go overdrawn but there has not been any agreed limit with Barclays. There will be no interest to pay on an unarranged overdraft amount.
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However, Barclays offers some leeway to customers who go slightly into an overdraft, as if you go overdrawn up to £15 or less, there will be no interest to pay.
Customers can request 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.
To remove or reduce your overdraft limit, you can get in touch on the app, online, by visiting a branch or by calling Barclays on 0345 734 5345.
Another rule for customers to note if when you make a payment, you need to have the funds in yoru 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 , , , 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.”
Customers can use the overdraft calculator on the Barclays website to work out how much the charges would be if you went into an overdraft.