Five questions answered on Barclays’ plan to review its overdraft fees and charges

The breakdown.

Barclays bank has announced that it plans to conduct an unprecedented review of its overdraft fees and charges faced by 12 million of its current account customers. We answer five questions on the planned review.

What particular aspects will Barclays be looking at?

A key part of this new campaign will look at Barclays’ overdraft pricing.

The bank is already trialling a text alert service which alerts tens of thousands of customer when they are about to go into the red.

This service alone has cost the bank £1.5m in lost fees and is likely to be extended.

Why is Barclays conducting this review?

It is thought to be an attempt to improve its reputation after a being handed out a series of fines.

The bank has recently admitted it is likely to suffer a £50m fine for its Qatari bailout.

It was revealed recently that the bank failed to declare it paid £322 million to the Qataris for bailing the bank out in 2008.

It also said that it may have to compensate 300,000 personal loan customers who were given the wrong paperwork for five years. 

The bank also came last in an ethical poll by campaigners Move Your Money, scoring just four out of 100 for its honesty and service.

How will the bank work out its new policy?

Earlier this month the bank launched a ‘Your Bank’ initiative asking customers to give honest feedback.

So far 250,000 people have got in touch.

A new overdraft policy will be worked out over the next 90 to 120 days.

How much does the bank currently charge its customers who go overdrawn?

It charges £88 for savers that persistently fall into an unauthorised overdraft during the month. However, the more common charge is £22 which usually occurs when a payment takes a customer into their unauthorized overdraft and another subsequent payment is made.

What has the Barclay’s Chief Executive said?

Speaking to The Telegraph, Ashok Vaswani, Barclays' retail and business banking chief executive said: "I'm going through the business with a fine toothcomb. We want to de-risk the business and clean up any sins of the past."

"The biggest one for me is overdrafts. I'm going to do a full grass roots review of our overdraft proposition. We know that this has been a problem which is why we have already launched the text alert systems in real time.

"I firmly believe that once a customer has been given the opportunity to save £22 they will say to themselves: "This bank is looking out for me".

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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