Barclays customers have become alarmingly concerned after receiving letters informing them with a month’s notice that their overdraft limit is to be removed as they have not used it for 12 months.
The issue with this is that many of these customers were relying on the overdraft in case they can no longer afford their bills – taking into account the inflation rate which is estimated to hit 13% by the end of the year, energy bills are tripling, oil prices are still through the roof (mainly due to government taxes), and just overall our economy is in a severe state of decay.
There are arguments for both sides however, on the one hand, people spending money they don’t have is a part of how we ended up in a recession in 2008, but conversely, if you sign up to a bank because of their overdraft plan and you’re counting on using that money if things go belly up, do the banks really have that right to rip it away from you? And if this country is going in the same direction as China, Vietnam, or even Lebanon, is this a start to the cashless society? Where can the banks refuse you access to your savings? We can only assume, but it does look like it, especially after the past few years.
A worried customer told the Guardian, “I asked if they could just reduce it to £400 as I wanted it as a safety cushion in case of account issues, and spent 40 minutes providing all my financial information, including my income and a very detailed breakdown of expenditure.” He further adds, “I have just received a text to tell me that my request was not accepted, and it will be removing all my overdraft facility. I really cannot understand why they are pushing customers away.”
Is it really an accident that in the news constantly they are fear mongering about climate change, monkeypox, and this cost of living crisis? Something big is on the horizon.
“Where can the banks refuse you access to your savings?”