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Barclaycard minimum payment scam
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# 1
Alex_B
Old 16-07-2008, 11:14 PM
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Default Barclaycard minimum payment scam

For anyone who has a Barclaycard — particularly one with a zero interest promotional period — be aware that the minimum payment which appears on your statement is rounded down to the nearest pound and by paying off this incorrectly stated amount you will be in breach of Barclaycard's terms & conditions.

For example, the balance on my card was £1357.99 and the minimum payment was stated as £30.00 (2.25%) but in actual fact £30.55 was due.

Now that I have breached the terms & conditions all new purchases are charged at their standard rate and every time I pay an amount off my card it only reduces the zero interest balance. So unless I completely pay off the balance the interest will keep on accruing.

You have been warned.
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# 2
NickX
Old 16-07-2008, 11:17 PM
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I have a Barclaycard and always pay the Minimum payment on the statement - never had a problem like this.

I would raise a complaint with Barclaycard on this, as you are keeping your side of the agreement by making the payment shown on the statement.
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# 3
jd87
Old 16-07-2008, 11:23 PM
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Alex_B this sounds utterly ridiculous and you need to stand up to Barclaycard about this. If you paid the amount shown then you did everything right. If they have told you something like "you should have known" or "it's all in the terms and conditions" then that is !!!!!!!!. Fight this hard.

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# 4
Alex_B
Old 16-07-2008, 11:26 PM
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Quote:
Originally Posted by Al Mac View Post
What was the 0% promotion on? A balance transfer?
I didn't do a balance transfer. The card has a 10 months zero interest promotion period on new purchases and I took it out at the end of October 2007. I used it to improve my cashflow over the Christmas season and made a minimum payment in May when money was a bit tight.
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# 5
Alex_B
Old 16-07-2008, 11:35 PM
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Quote:
Originally Posted by jd87 View Post
Alex_B this sounds utterly ridiculous and you need to stand up to Barclaycard about this. If you paid the amount shown then you did everything right. If they have told you something like "you should have known" or "it's all in the terms and conditions" then that is !!!!!!!!. Fight this hard.
I intend to fight this, but I'm going to clear the debt first. Not sure who to take it to, maybe the OFT or the FSA. I won't be approaching Barclaycard, that's for sure.
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# 6
Alex_B
Old 16-07-2008, 11:38 PM
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Quote:
Originally Posted by Al Mac View Post
When did they tell you the promotional period would end? Not when you think it would end.

If this was a genuine computer error, I think it would be fairly big news.
Promotional period ends in Spetember i.e. that is when my full balance would have been charged at the standard rate (before I fell into their trap). I'm certain it's a scam, not a computer error.
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# 7
NickX
Old 16-07-2008, 11:38 PM
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Al Mac is right !!

You must persue it with Barclaycard and only when their complaints procedure is exhausted can you then take it to the Financial Ombudsman.
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# 8
NickX
Old 16-07-2008, 11:44 PM
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There is something not right here, as I said I have Barclaycard and have never seen anything like this.

Did they definitely say that by paying the precise amount detailed on the statement was not enough and breached the Terms and Conditions ?
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# 9
Alex_B
Old 16-07-2008, 11:48 PM
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Quote:
Originally Posted by Al Mac View Post
Do you have September in writing? Does it say this on your statement?

Have you used the card for cash or for gambling.

I doubt they would be stupid enough to set up such a scam.
Yes, it's says September on the top of my statement. Haven't used it for cash advances. Didn't have a problem until I paid the stated minimum.
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# 10
Alex_B
Old 16-07-2008, 11:52 PM
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Quote:
Originally Posted by NickX View Post
There is something not right here, as I said I have Barclaycard and have never seen anything like this.

Did they definitely say that by paying the precise amount detailed on the statement was not enough and breached the Terms and Conditions ?
There is always a minimum percentage amount specified in the T&Cs. I've been through quite a few credit cards and never had a problem like this before.
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# 11
Alex_B
Old 16-07-2008, 11:54 PM
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Originally Posted by Al Mac View Post
If a payment hasn't arrived late. This is the last thing I can think of. Then you actually need to ask them, why you are paying interest.
I broke their T&Cs, but I believe it was their deliberate intention to trip me up.
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# 12
NickX
Old 16-07-2008, 11:57 PM
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Quote:
Originally Posted by Alex_B View Post
There is always a minimum percentage amount specified in the T&Cs. I've been through quite a few credit cards and never had a problem like this before.
If you have paid the precise amount detailed on the statement as the minimum required and they received this before the due date, then you have not breached the Terms and Conditions.

If a Barclaycard employee has said that you have, then I suggest that they are simply wrong and I would definitely take them to task over it.

I am not sure but I would even suspect that such a "scam" would be highly illegal and certainly not something that a company such as Barclaycard would entertain.

I suspect that so far you have been "fobbed off" by illiterate and incompetent call centre staff. I strongly urge that you persue this through the Barclaycard official complaints procdure, you want all interest paid refunded and compensation for such a mistake to be made. I know that I wouldn't let them get away with this.

Please keep us posted as to what happens next. Thanks.
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# 13
dmg24
Old 16-07-2008, 11:59 PM
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I have a Barclaycard on a 0% offer. I have not had this problem either.

You have not answered NickX's question:

Quote:
Did they definitely say that by paying the precise amount detailed on the statement was not enough and breached the Terms and Conditions ?
I assume you have asked them?
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# 14
YorkshireBoy
Old 17-07-2008, 12:00 AM
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Complete shot in the dark here, but is it possible the £30.00 figure relates to a direct debit...if you have one set up?...and the £30.55 figure for paying by other means was mentioned somewhere else on the statement (perhaps secreted away somewhere)?

At the end of the day though, a short concise complaint letter should do the trick...

http://www.barclaycard.co.uk/persona...nts/index.html

I'd avoid the secure mail option and go for the postal option myself, but it's your call.
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# 15
Alex_B
Old 17-07-2008, 12:00 AM
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It seems I am not the only one.

http://www.consumeractiongroup.co.uk...ystematic.html
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# 16
NickX
Old 17-07-2008, 12:05 AM
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Quote:
Originally Posted by Alex_B View Post
This link is about how they round down the minimum payments, but it does not say that making this minimum payment is breaching the Terms and Conditions.

They are simply referring to the fact that rounding down the minimum payment means that the debt decreases at a slower rate, hence more interest accrues (when your not on a 0% rate).
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# 17
Alex_B
Old 17-07-2008, 12:06 AM
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Quote:
Originally Posted by YorkshireBoy View Post
Complete shot in the dark here, but is it possible the £30.00 figure relates to a direct debit...if you have one set up?...and the £30.55 figure for paying by other means was mentioned somewhere else on the statement (perhaps secreted away somewhere)?

At the end of the day though, a short concise complaint letter should do the trick...

http://www.barclaycard.co.uk/persona...nts/index.html

I'd avoid the secure mail option and go for the postal option myself, but it's your call.
I pay online and the minimum amount is clearly stated next to the 2.25% figure of the balance it is alleged to be. Yes, you can't beat good old fashioned snail mail.

Last edited by Alex_B; 17-07-2008 at 12:11 AM.
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# 18
Alex_B
Old 17-07-2008, 12:10 AM
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Quote:
Originally Posted by NickX View Post
This link is about how they round down the minimum payments, but it does not say that making this minimum payment is breaching the Terms and Conditions.

They are simply referring to the fact that rounding down the minimum payment means that the debt decreases at a slower rate, hence more interest accrues (when your not on a 0% rate).
Fair point, but it is along similar lines. I can understand why someone might think I made this up so I am trying to find similar cases.
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# 19
YorkshireBoy
Old 17-07-2008, 12:12 AM
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Quote:
Originally Posted by Alex_B View Post
Now that I have breached the terms & conditions all new purchases are charged at their standard rate and every time I pay an amount off my card it only reduces the zero interest balance. So unless I completely pay off the balance the interest will keep on accruing.
This doesn't sound right. Normally when you breach the T&C's you lose the 0% benefit on the entire balance...not just on new purchases.

A question...have you incurred a late/missed payment charge of £12 in all of this anywhere?
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# 20
NickX
Old 17-07-2008, 12:13 AM
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Quote:
Originally Posted by Alex_B View Post
Fair point, but it is along similar lines. I can understand why someone might think I made this up so I am trying to find similar cases.
Well they key issue in your case appears to be that Barclaycard are saying that you have broken the Terms and Conditions.

I am absolutely positive that by paying the minimum as set out on the statement, even if that is 2.25% of the balance rounded down, and it getting to Barclaycard before the Due Date is NOT breaking the Terms and Conditions.

If they are saying otherwise, then I would go into dispute with them and take it as far as I possibly could.
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