www.iva.co.uk

Had a letter from Barclays this morning about changes to our account, they are now providing us with a, "reserve" of £1000, this is not an overdraft, but a safety net to ensure no bills are unpaid/returned if not enough in your account. (Sounds a lot like an overdraft to me!)

It does say that if you go into this reserve, after 5 days you will be charged at the rate of £22 a day. (Still sounds like an overdraft to me!)

Just wondering if anyone can shed any light on to the legality of having this on an account whilst in an IVA (you can opt not to have it if you wish) They do stress it is not an overdraft, and I appreciate sometimes at the end of the month it can be nail biting watching the DD's come off hoping your wage goes in before the last one comes out.

All of you going to the FF meeting tonight, have a great time, don't worry about me at work [:(]

Never mind Beans - I'm not going either!!!!!!!

I still have my Barclays account and we had one of those letters. It sounds like an overdraft to me too.

When we used that account, if any of my dd's were due out and there wasn't sufficient money in there, they paid them anyway and just (!!!) charged me £30 for the privilege!

I don't know whether it would be classed as an overdraft or not for your IVA, but £1000 does sound like a large 'safety net'!

I think I'd opt not to have it myself.

Think you're right Jan, just wondered if every customer was being offered this service as I'm pretty sure they know we're in an IVA.

I think ours was a standard letter, the sort they sent out en masse.
Barclaycard are one of my creditors, so I am pretty sure that Barclays will have been told of my IVA.

Hi
Yes everyone has been offered this, my friend got one but hers is only for £150. she called them and said she will accept if they knock it down to £50 and they said they would, she did not want the temptation of knowing you can overspend your money and it can be covered as long as you pay a little extra like a overdraft/loan.

I had this and clarified with my IP - it would be classed as an overdraft - I wrote to them and asked them to remove the facility as I did not want this option - they were not happy to remove it as apparently it came as part of the account package - therefore I swapped accounts moved to Co-Op Smile ! Don't risk it......you don't want to go backwards after all the good done so far - temptation at the end of the month .....no!!!!!!!!!!!!!!!!!

RBS have done this also. Although they are one of our creditors and we now use the Abbey. X

It a very significant charge for dipping into this "Reserve" it will be £22 in the first 5 days and a further £22 for each subsequent 5 day period.

I don't think so! Tick the opt out box and send it back to them.

Contemptuous !

Hi all i had one of these letters too.It is £22 a month regardless of how many times you dip into it in the month. I went into my branch to confirm this. They are doing it so they can try and help us avoid mass bank charges each month .It will be great for us as you can never guarentee things go in and out when they are suppose to.And if anything like me i got charged £30 for going £9. overdrawn i mis calculated whan a dd was going out

But if Lulu is right about it being an overdraft, just with a different name, you should not be having it during your IVA.

I don't believe it is to stop the bank charges, after all, they will still be charging you if you use it. If it is there, then people will be tempted to use it. After all, if it is only to 'help out' if you need it at the end of the month - why make it £1000?

i DO AGREE WITH YOU ON THAT ,IVE HAD MINE REDUCED TO £200 JUST INCASE ID SOONER PAY £22 THAN £30 FOR EACH DD.

I deffinately think the temptation would be too much, especially for those in an IVA who are already struggling month by month. Afterall, its things like this that got us all into the mess we have been in.
Whatever way its looked at its still credit and really shouldnt be touched

Good points from both arguments, we will be ticking the opt out box, although in principle it is nice to know it is there, it still stinks of overdraft to us. Wouldn't want to jeapordise IVA for something we don't require.

I definitly don't want anything like that. As I have said, we don't use the Barclays account at the moment and have no DD's set up on there so wouldn't want it.

It is very tempting, and all of us on here know how easy it would be to use it 'just this once' to get us out of a hole at the end of the month. Before you know it you have run up another debt, which you can't afford to pay.

Banks shouldn't be able to do this. If they want to offer anything like this, then you should have to opt in to take it, rather than opt out if you don't want it.