*Important* Changes to Barclaycard Conditions effective 1st August 2006 *Important*

thms

The monthly interest rate will change on your cash balance to 2.075% per month (27.9% per annum). The new rates will affect any existing cash balance and all new cash transactions showing on your August statement.

Any promotional rates you are currently benefitting from remain unchanged.

The default charge will reduce as follows: £12 if you do not make at least the minimum payment by the payment due date; £12 if you exceed your credit limit at any time; £12 if a direct debit, cheque or other is not paid when first presented.

If you never ever incur any default charges you are now paying through the huge hike in interest charges, for the reduction in default charges...

Is this legal?

As a result I have taken out a loan at 5.9% with Northern Rock and reduced my Barclaycard balance to ZERO last week..

Astaroth

yes, and it is what many people on this forum have been campaigning for

inmypocketnottheirs

And once Barclaycard have seen a drop in their customer base what doyou think they will do. Launch promotional offers to lure customers back.

I use credit cards all the time, and as far as I am concerned they could charge 250% per month as I pay off in full every month.

Credit cards are not for long term borrowing, so the Northern Rock option would have been best from the outset.

poppy_f1

they wont be the only credit card company which does this

thms

Astaroth wrote:

yes, and it is what many people on this forum have been campaigning for

so this site has been been campaigning for a hike in interest charges
to get cheaper default charges. i have never defaulted on payments
so why should i subsidise those that do?

Astaroth

I am of the same opinion as you

The increase in other charges and interest etc was a very forseeable consequence of reducing the penalty fees

Paul_Herring

thms wrote:

so this site has

not quite - certain members on the site have

been been campaigning for a hike in interest charges
to get cheaper default charges. i have never defaulted on payments
so why should i subsidise those that do?

The flip side of this, of course, is why should they subsidise your fee free card at present. I did ask on one of the other threads if there wasn't some sort of middle ground between the two, but didn't get any replies.