Barclays to hammer the poorest by tripling fines on standard accounts
Barclays are going to triple the fines received for missed payments on basic accounts. You could be looking at fines of £24 per day. This of course, could ruin the poorest customers who have these basic accounts.
Over one million customers will see these charges coming into place from March next year, being hit with three £8 charges every 24 hours if payments bounce. Basically, you've got 'til then to get a bank account with someone else.
Barclays are trying to justify this by claiming that they're losing ‘a lot of money’ on basic accounts. Accounts, its worth pointing out, that were designed for customers with dicky credit ratings or low-income.
Basic account don't have overdrafts, which is one of the ways banks like to make a profit on their customers. Barclays clearly want to make a fast-buck on these account holders, so now, if a customer's balance drops and a direct debit or standing order fails, Barclays can hit them with an £8 penalty.
A spokesman for Barclays said: "We want to ensure this product remains financially sustainable so that we can continue to help those at risk of financial exclusion gain access to banking'
'We also want to ensure the product continues to meet the needs of those it is designed for. The changes we are making are based on solid research of our customer base and Citizens Advice Bureau clients'.