Barclays customers at risk of being pushed into overdrafts after trying to withdraw “free cash” during the “ATM glitch”
BARCLAYS customers who have withdrawn “free” cash from the bank during an ATM glitch could find their accounts are overdrawn.
Scores of people have queued up at ATMs across the UK to withdraw “free” cash during an outage at the major bank.
The hashtag #barclaysglitch was trending on social media as bank customers raced to their nearest cash point to withdraw £250.
Many mistakenly believed that the cash was “free” because their account balance has not updated since the money was taken out.
But these opportunistic customers could be in for a shock as a spokesperson for the bank has warned any cash withdrawn will be taken from customers’ accounts.
They said: “Customers can use their debit cards to withdraw cash from ATMs, up to their daily limit. Any funds will be debited from their account.”
This could mean that customers who take out more money than they have in their account may be pushed into an overdraft.
Payments and direct debits such as water and electricity bills may not go through, which could mean they are charged a penalty by their supplier.
Meanwhile, missing a household bill payment could also leave a negative mark on their credit file.
The outage began on Friday and customers reported that they were unable to log into their mobile banking app and internet banking services.
It meant that users who needed to check if their salary had been paid into their account or pay their bills could not do so.
Barclays said the outage was caused by a technical issue and was not related to a cyber attack or any malicious activity.
A Barclays spokesperson said the outage is mostly resolved and delayed payments are being processed.
But the accounts of some customers are still not showing accurate balances.
They added: “Customers can use our app, bank online, call us, use their cards and withdraw cash.
“We are working on bringing balances up to date for some of our customers and addressing any outstanding issues.
How much can Barclays customers withdraw from ATMs?
The amount of cash that Barclays customers can withdraw from an ATM depends on the type of account they have.
Personal current account holders can withdraw up to £300 a day.
If they set a daily limit they can withdraw between £0 and £500.
Premier customers can take out up to £1,000 a day, or £2,000 if they set a daily limit.
Meanwhile, Business customers can withdraw up to £750 a day.
“We are very sorry for any disruption and will ensure that no impacted customer is left out of pocket.
“We are keeping our call centres open for longer this weekend and we will be proactively contacting customers who may be vulnerable.”
Customers who are still experiencing account difficulties should get in touch with the bank to discuss their individual circumstances.
But wait times to speak to someone on the phone may be longer than usual.
Yesterday DownDetector, a website that monitors outages, showed that more than 5,038 people encountered problems with the bank’s online services.
Half of the reported problems related to difficulties with mobile banking.
Meanwhile, 42% of users said they have had trouble accessing Internet banking.
Other customers said they had problems making payments and checking their balance.
Some users said they could not see their recent payments into or out of their account.
This meant they had no idea how much money was in their account.
Friday was also the day of the self-assessment tax return deadline and the date by which you must pay any tax you owe.
If you do not pay your tax bill on time you may be hit with a penalty of up to £100.
It also coincided with the first payday of the year for millions of workers.
Barclays said it will ensure customers are not penalised because of the service issue.
If you were impacted by the issue they should contact Barclays directly to ask for compensation.
You can do this using its online live chat service, calling or visiting a branch.
Can I claim compensation for the outage?
Banks are not obligated to pay compensation to customers if there has been a drop in service, unlike telecoms companies.
If you have been hit with extra costs as a result of the service issue then you are likely to get your money back.
What to do if you can't access your money
If you can't access your money and you need to urgently, here's what to do:
- Visit your local branch as soon as you can.
- If you can’t get there, or it is closed, call your bank and ask for its guidance on what to do.
- If the bank’s phone services are also down or busy, try contacting your bank on social media to ask what to do. But remember: don’t ever share your account details over social media.
- Try to do this on the day the problem arises so you can show you made every attempt to solve the issue.
- If you still can’t access your money, begin gathering evidence for a complaint.
For example if you cannot pay a bill because of the outage and are charged a fee for missing it, you may be able to claim the money back.
If your credit rating is affected by the outage and you receive a late payment fee because you could not make a transaction then you should keep a record of this.
If you speak to anyone on the phone to try and resolve the issue then write down their name, when you spoke to them, what you discussed and their advice.
You can find more information about how to make a complaint on the Barclays website.
Gather any evidence you have so you can make a formal complaint to the bank directly.
What can I do if I am unhappy with the compensation?
If you are unhappy with how your complaint was handled then you can contact the Financial Ombudsman Service (FOS) for free.
The FOS is an independent body that will consider any evidence you present and make a decision about the actions your bank must take.
You need to wait 15 days after you raised concerns with your bank before you can take your case to the FOS.
For IT system outages at the bank, the FOS said the compensation depends on your situation and if you are out of pocket as a result.
If it thinks your bank has done something wrong and has treated you unfairly then it will ask it to put things right.
This will depend on your circumstances and how you have been affected.
It may tell your bank to pay compensation to:
- Make sure you do not end up out of pocket
- Recognise the inconvenience and trouble you have been through
The FOS may also tell your bank to take steps to ensure you have not lost out in any other way – for example by telling it to correct your credit file.
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