Barclays closing accounts for UK expats in Greece

[bobscott]

That was my first thought, too, Bob.

What was your second Phil?????? B

[filippos]

Nor I. As I said, we gave up on B. International. Heaven help anyone dealing with any part of Barclays.

Over five years we had three major disputes with the UK domestic operation, the first two ended up with the FSO and to conclude the third the customer services director agreed £800 compensation rather than have me write to the Group CEO - again. They even managed to declare 'Er Indoors' mother deceased, close her accounts and cancel all her pensions: took them ages to sort that one.

[Carolina]

What I don't understand is why they need to restrict other people from opening bank accounts? If an ex-pat, whose income arises outside Greece but who is living in Greece, needs an account to have money transferred into from abroad so that they can live, how does that pose a threat to the Greek economy? What purpose is served by stopping them opening a bank account?

Warwick

According to my son, who is working at NBG for the summer, many Greek people are spreading their money amongst different banks and accounts in fear of a bail in of deposits at some time in the near future, hence the current restrictions on opening new bank accounts. Which is worrying!

[Kilkis]

...According to my son, who is working at NBG for the summer, many Greek people are spreading their money amongst different banks and accounts in fear of a bail in of deposits at some time in the near future, hence the current restrictions on opening new bank accounts. Which is worrying!

Makes sense. I think new regulations apply from 1 January 2016 that will make bail ins easier. I don't know for sure but I think they might be linked to new regulations implemented at the last G20 meeting in Australia that moved depositors to the end of the creditor queue. For example, if the stress tests, due to start shortly, show the banks need extra capital then that capital will be taken from depositors accounts before there is any external bail out. I think that money in depositors accounts will be compulsorily converted into shares in the bank. I think that the first €100,000 is still protected in theory but I wouldn't place money on it staying that way. I am not sure how it works within Greece but in the UK all banks that have the same registration with the bank of England count as a single bank so you have to be careful how you split the accounts up. For example Bradford and Bingley and Cahoot come under Santander's registration so, if you had an account at each of these, the balances would be added together and compared to the limit not protected individually.

Warwick

[SteveH]

Received notification from Nat West (RBS group) that FSCS is being reduced:-

The Financial Services Compensation Scheme (FSCS) is a scheme provided by the UK Government. It gives a level of cover for your money if anything happens to your bank, building society or credit union.
Their deposit protection limit is changing from 1 January 2016. This change applies to all banks, building societies and credit unions in the UK.
What's changing

• For individuals: the level of cover is reducing from £85,000 to £75,000 per bank, building society or credit union

• For joint account holders: each account holder will have a level of cover up to £75,000

What with China, it's all getting a little 1929, I hope not...

[Kilkis]

I suspect that they are bringing it into line with the current exchange rate. There is an EU Directive that specifies a €100,000, which, at today's exchange rate, is closer to £75,000. At least it's a good excuse.

I was told by a friend that there is a whole new tranche of regulations coming into force on 1 January 2016. One probable outcome is the re-introduction of banking charges. That would be a disincentive to splitting up any savings between different accounts so they are more likely to be able to skim off any excess when the next banking crisis occurs. If anybody thinks the word "when" should be replaced with the word "if" in that last sentence then you have just won the "Optimist of the Year" award.

Warwick

[YoMo2]

.......For example, if the stress tests, due to start shortly, show the banks need extra capital then that capital will be taken from depositors accounts before there is any external bail out. I think that money in depositors accounts will be compulsorily converted into shares in the bank.

More wealth transfer. We really are screwed aren't we?

Andrew