Barclays hands boost to Brits in debt
Barclays hands boost to Brits in debt
Friday 30th May 2008
Under plans revealed by the bank yesterday, the charge levied on customers who go overdrawn without authorisation will be cut to £8 from August 18th.
Currently the fees, which have provoked stinging criticism of the banking industry from consumer groups, are pegged at £35.
The bank also confirmed it is scrapping overdrafts on its range of current accounts and replacing them with a personal reserve.
This will act as a kind of buffer zone and enable customers to go overdrawn up to £1,500 for a one-off payment of £22.
Which? chief executive Peter Vicary-Smith said: "We've long said that people want simple and transparent banking and Barclays is going in the right direction.
"It would have addressed a lot of customers' problems if this had happened years ago. We are pleased to hear Barclays' commitment to fee-free current accounts, and hope that other banks will follow their lead."
News of Barclays move comes amid concerns that the decade of profligate spending which preceded the credit crunch will severely impact on millions of Britons this year.
As a result, many are expected to turn to debt management solutions such as individual voluntary arrangements (IVAs) and debt consolidation loans to gain control of their finances.
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