Barclays scraps overdrafts amid cost-of-living crisis

First it slashed credit card limits for regular customers, now Barclays is scrapping crucial monthly overdrafts despite cost-of-living crisis

Barclays is giving up vital financial buffers for scores of customers amid a cost-of-living crisis.

Furious borrowers say their overdrafts were canceled with just a month’s notice despite decades of loyalty.

It comes just a year after Barclaycard came under fire for slashing the credit card limits of more than 100,000 customers by 99 per cent.

Furious Barclays customers say their overdrafts were stopped with just a month’s notice despite decades of loyalty

One customer, Juliet Taylor, had a £1,500 overdraft and had worked at Barclays for 33 years.

But a letter from the bank in April said it had been removed because she had not used it in the past 12 months.

Mum-of-one Juliet, 50, from Devon, said: “I think it’s absolutely disgusting that Barclays are cutting overdrafts at a time when families across the country can rely on them.

“It always gave me peace of mind — knowing I had an overdraft if I needed it.”

The Dispute Resolver website handled more than 1,400 overdraft complaints last year.

Complaints that financial buffers are being cut with little notice are among the most common cases.

Consumer affairs expert Martin James says he is “concerned that the abolition of overdrafts will largely leave people with only high-interest emergency borrowing options”.

A spokesman for the Financial Conduct Authority says: “Creditors have to treat people fairly and we have reminded them of that.”

Barclays says: “We review all personal overdraft limits at least once a year. If the overdraft has not been used at all for a long time, we can remove it.”


Barclays scraps overdrafts amid cost-of-living crisis

Source link Barclays scraps overdrafts amid cost-of-living crisis

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