BARCLAYS Bank is at the centre of another controversy which will further disenfranchise loyal customers.

Having closed scores of rural branches and levied charges on customers who use rival cash machines, Barclays has now been accused of heaping further "disloyalty" charges on unsuspecting customers.

This time it is holidaymakers who face inflated fees for transactions they expect to make for free. People planning trips abroad can fall prey to a 1.5 per cent charge if they use Barclays debit cards to buy foreign currency from travel agents.

One customer was shocked to find he could not take advantage of a charge-free offer from Thomas Cook to change money at its branch in Darlington.

Despite the travel agent dropping charges for any transactions over £200, Barclays wanted to slap a "disloyalty" fee up to £4.50 for the privilege of using a debit card to make the payment.

The customer told The Northern Echo: "The fact that you can go to a supermarket to buy your shopping and get cash back and not be charged and yet you can to a travel agents and get charged as if it were a cash machine is completely contradictory. They are trying to funnel you into using their services.

"The reason I went to Thomas Cook was they had this special offer on, they didn't make a charge.

"It is just one more way the banks have of getting money out of you."

Barclays defended its "disloyalty" charge.

A spokesperson said: "The charge is clearly outlined in our Barclays Connect user guides, which are sent to customers whenever a new card is issued.

"The literature clearly states that a 1.5 per cent fee (min £1.50, max £4.50) if you use your card to get cash, currency or travellers cheques anywhere other than Barclays."

Thomas Cook confirmed that all Visa Delta card holders were liable for the charge under bank policy and they are told they will be charged prior to any transaction