Barclays pulls financial safety net as cost of living crisis bites

theguardian.com:

Barclays customers claim they are losing a vital financial safety valve during the cost of living crisis after the bank abruptly withdrew their unused overdraft facilities. The bank has written to a number of its current account holders informing them that their overdraft limit will be removed with a month’s notice because they have not used it for 12 months.

Many say they were counting on the provision in case soaring bills tip their accounts into the red. They now face paying high interest rates and charges if they are forced into using an unauthorised overdraft. Andrew Davey, who has banked with Barclays for more than 30 years, was informed that his £1,400 overdraft was being withdrawn as he had not used it in the past year.

“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 says.

He 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.”

Clare Illingworth Leach has banked with Barclays since 1980 and has a £150 overdraft which she has never yet used. “I received a letter stating that it would be removed. So did all the people I know who bank with Barclays,” she says. “I sent them a letter, as invited, asking them not to remove my modest overdraft facility. They ignored me and revoked it without replying. I am housebound [and] on a very small income, and I wanted to retain it as a cushion in case of fraudulent transactions depleting my account, which has happened twice in five years.”

Barclays says it