Released on: August 29, 2008, 3:15 am

Press Release Author: Compare and Save

Industry: Financial

Press Release Summary: Barclays has recently launched a new overdraft system where
customers now get given a 'Personal Reserve' in case they go over their pre-arranged
overdraft limit.

Press Release Body: The 'Personal Reserve' is a set amount agreed by Barclays - £250
on average - and will cost customers £22 for each five days it is used. During this
five day period customers can make unlimited transactions without receiving further
charges or having payments rejected. Once the 'Personal Reserve' is exceeded, the
customer will be charged £8 for each transaction and have cheques and other payments
bounced.

Commenting on the new 'Personal Reserve' overdraft system from Barclays Bank, Emma
Skinner, Editor at compareandsave.com, said: "It would not be totally far-fetched to
consider that the move by Barclays to change their charging system in this way could
be a move to help in their bank charges court battle against the Office of Fair
Trading (OFT).

"By changing the service, and giving it an 'opt out' option, Barclays could be
trying to demonstrate that the unauthorised overdrafts are actually a service it
provides to its customers. This would therefore demonstrate that the charges do not
fall under the Unfair Terms in Consumer Contracts Regulation 1999 as argued by the
OFT.

"If this happened, banks would not have to refund the millions of pounds in
overdraft charges that have been paid.

"The reduction in charges is certainly a step in the right direction and will surely
ease the strain on customers. For those that choose to have a Personal Reserve, they
will pay £22 for five days and will not have payments bounced. This is a lot better
than £35 for each instance of going over their authorised overdraft plus interest
charged at 27.5%. For those customers that choose to opt out, £8 per instance of
bounced cheque or payment is again still a lot better than £35 and the interest.

"However, £22 is still a large fee to pay if, within the five day period, the
customer only goes into their Personal Reserve once. It would surely also
potentially encourage the account holders to go further overdrawn, and as far into
their Personal Reserve as possible, meaning they will have to pay the £22 for every
five days they use their Reserve. This could be a huge problem for those people who
are desperate enough to use their Personal Reserve knowing full well that they
cannot afford to pay it back within the five-day period," she added.

-Ends-

For further information, please contact:
1. Emma Skinner
Editor - Compareandsave.com
0207 195 1967
emma@compareandsave.com

2. Sapna Balgobin
Online PR Manager - Coast Digital
0845 450 2086
sapna.balgobin@coast.digital.co.uk

About us

compareandsave.com is one of the UK's leading online personal finance publications
with millions of consumers using the site each year. Each month around 50,000
products are purchased through the site.

Each day we bring the latest news and money saving tips from the industry to our
readers with the aim of giving them all the information they need to find financial
products that are right for them.
The site also offers our readers a free comparison service which details the latest
best buys on products ranging from credit cards, loans and savings accounts to
broadband and a number of insurance products.


Web Site: http://www.compareandsave.com/

Contact Details: For further information, please contact:
1. Emma Skinner
Editor - Compareandsave.com
0207 195 1967
emma@compareandsave.com