Over 20 million people in the UK have a Barclays account, but it seems many customers are unaware of an important policy enforced by the bank.
On X, Alex Williams shared that he’d received a letter informing him his £3,000 overdraft – which he’d had for 40 years – was being ‘removed’ due to lack of use.
On the same day, a second letter from Barclays said, ‘one of [his] business accounts (that has an income of only £89 per month) had pre qualified to borrow £2,900’.
‘I’ve a six-figure income and a perfect “excellent” credit score,’ he explained in a tweet. ‘So I can’t really figure out what’s occurred.’
Others have had similar experiences recently too, including Andrew Six who said: ‘I’ve been a Barclays customer for over 30 years. I’m having my overdraft facility removed by default because, wait for it… I haven’t used it in over 12 months. Bravo Barclays! Looking to switch banks now.’
A third customer, @kappacino, said his overdraft facility was withdrawn ‘arbitrarily with little notice,’ despite him ‘not abusing it and being a long term customer.’
According to the bank, this is part of its commitment to acting as a ‘responsible lender’.
A Barclays spokesperson told Metro: ‘We understand the comfort and convenience an overdraft can provide to people, particularly during challenging times. However, we have a duty of care to try to ensure that customers have an overdraft that is appropriate.
‘We therefore review all personal arranged overdraft limits at least once a year. If the review indicates that the current limit is manageable, no action is taken. However, in cases where the review suggests that the limit may be too high, we’ll propose reducing or removing it.’
It’s not a new thing either, with annual lending reviews coming into effect back in 2021.
On social media, Barclays explained that ‘if an overdraft isn’t being used,’ it can be taken away ‘due to it no longer being needed’, with additional lending and other factors also taken into account.
Thankfully though, a letter like this isn’t final; you can appeal if you feel you’re able to afford your current limit.
You’ll be given 48 days’ notice of any changes to your borrowing, during which time you can contact Barclays with additional information to confirm your income and expenditure.
From there, you’ll be advised on next steps and – once your details are assessed – given a final verdict on whether the bank’s decision will be overturned.
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It may be a bit of an inconvenience, but it’s done to protect you — and a few phone calls to resolve the matter is better than potentially unaffordable debt.
And if your appeal is rejected, try to remember that overdrafts aren’t always a good option. Money Saving Expert founder Martin Lewis recently called them ‘danger debt’, citing their often ‘hideous’ APR which can be twice as much as credit cards.
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He added: ‘If possible (I know it’s not easy) you should prioritise reducing them ahead of most other debt.’
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