Barclays issues £200 warning after removing popular feature from bank accounts

Barclays has issued a £200 warning to customers after removing a popular feature from its bank accounts. One customer reached out via social media site Twitter, now X, after seeing their overdraft scrapped after not using it for 90 days.

The customer messaged the bank over X saying: "Barclays are removing my £200 overdraft because I’ve not used it for 90 days and I would get it today if I asked for it. £10k in my bank but when I had nothing they gave me an overdraft they’ve earned plenty of interest on."

The Barclays advice page states: "If you want to make a payment that would take you over your arranged overdraft limit, we can refuse to make the payment." Barclays said in response to the customer: "As a responsible lender, we constantly review accounts and take into consideration any other lending people may have.

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"As you've mentioned, if an overdraft isn't being used, we'll remove due to it no longer being needed." If you want to cancel or reduce your arranged overdraft, you can usually do so in the Barclays app or Online Banking. Alternatively you can do this at a branch or through Telephone Banking.

An overdraft is a short-term way to borrow money through your current account. There are two types of overdraft – arranged and unarranged. An arranged overdraft is an overdraft limit we agree with you. It lets you borrow money through your current account up to your arranged overdraft limit.

It can be a safety net to cover unexpected short-term outgoings, like an unexpected bill. Interest is calculated for each day you’re overdrawn, on the amount you’ve used up to your overdraft limit. If any part of your overdraft is interest-free, we won’t charge interest on that part of your overdraft balance.

An unarranged overdraft is when you haven’t agreed an arranged overdraft limit with us, but you spend more money than you have in your current account, or you go over your arranged overdraft limit. We won’t charge any interest on any amounts that take you into an unarranged overdraft.