I have always regarded Barclays as a really solid, well organised and managed bank. How wrong I am.
I have never banked with them but have used their stockbroking service for many years, not that I have much to invest. The service has always been first class, until now. Just under a month ago, the bank transferred my account from a truly excellent service to something they call 'Smart Investor'. 'Smart Investor' costs twice as much as before and the service, system and everything else is abysmal. I know that I'm far from being the only customer who has suffered the same painful experience but Barclays has kept very quiet and denied that there are any real problems. What else would one expect ?
Today, I've heard a news story about a 94 year old woman who has been fleeced, that's the only way to describe it, of £640,000 by no one else but Barclays. This poor, unsuspecting and obviously trusting lady borrowed £42,000 from the bank against the value of her home some 20 years ago in order to carry out some home improvements. The money was leant under a type of mortgage loan that survived for only a couple of years and was offered by only 2 banks, Barclays and Bank of Scotland. Under the agreement, rather than pay interest on the amount borrowed, the bank would take a share of the eventual increase in the value of the property when it was sold; in this particular case, it was 3 times the proportionate increase in value which amounts to £640,000.It has been suggested that this equates to an annual percentage rate for the loan of around 15% over the 19 years that the loan lasted. Barclays has taken it's profit without apology or any apparent embarrassment and has refused to vary the terms of the original agreement in the light of its vast profit. The bank claims that the lady, in her mid-70s when the loan was arranged, was in full possession of all of the facts about the loan etc etc, and has no responsibility for the situation that arose.
I also heard today and on the same programme, the excellent 'Money Box', that a 'Smart Investor' victim had suffered having his entire life savings made inaccessible by the bank until 'Money Box' had intervened on his behalf. Even so, only half of his investment of some half a million pounds had yet been freed up; this is after the transfer to the 'Smart Investor' service which began on 25th August. Barclays have apologised, made the usual noises and insisted that only 'a handful' of investors have experienced problems with their new service. HA HA ! One has only to type 'Smart Investor into Google to be directed to many stories about the utter disaster that is 'Smart Investor.
Now, another story. An acquaintance in a rented property paid their monthly rent from a Barclays account; the payment went astray and, when it was realised, they contacted the bank. After some umming and arring, the bank agreed to put a trace on the payment, saying that it could take up to 20 working days to recover the payment but it should be quicker. Today, some 31 working days on, nothing has yet happened and the landlord is becoming impatient. The bank simply ignores the potential problems and my acquaintance could end up losing their home. Does Barclays care ?
Barclays is an example of a truly awful bank. It has one aim - maximise profits, sod the customers. AVOID AT ALL COSTS !
No comments:
Post a Comment