Barclaycard interest on low balance is massively overcharged!

madmum33

I've just checked my Barclaycard online account and noticed that for the last five months, despite my balance being a maximum of £59 in February and down to a minimum of £32 in July, I have been charged £1 interest every month. My APR is 16.9%, I always pay double the minimum payment, yet I am being overcharged every month.

Does anybody know why they do this, and is it legal?

InsideInsurance

What did they say when you asked them?

It could be there is a minimum interest - on the basis that APR is based on a balance of £1,200 it wouldnt be reflected in the calculation. It would be legal if it is in the credit agreement you said you agreed to

SnowTiger

madmum33 wrote: »

I've just checked my Barclaycard online account and noticed that for the last five months, despite my balance being a maximum of £59 in February and down to a minimum of £32 in July, I have been charged £1 interest every month. My APR is 16.9%, I always pay double the minimum payment, yet I am being overcharged every month.

Does anybody know why they do this, and is it legal?

If you don't pay off the statement balance in full each month you will be charged interest.

Presumably £1 is the minimum amount of interest Barclaycard charges?

Paul_Herring

http://www.barclaycard.co.uk/personal/credit-guidance/managing-credit

If you pay off your balance when it’s due every month, you won’t have to pay any interest whatsoever. However if you need more flexibility and don’t pay your balance in full, the minimum interest you would pay is £1.

opinions4u

For crying out loud, given the piddling little balance pay it all off.

And clear the residual interest in full the following month.

JimmyTheWig

£30 isn't piddling to everyone, opinions4u.
But OP, given the terribly high rate you are being charged, it would make sense to prioritise this.

SnowTiger

JimmyTheWig wrote: »

£30 isn't piddling to everyone, opinions4u.

Good point, bearing in mind the OP has only managed to save £16 during the past five and a half years:

£2 Savers Club started January 07 - £16

madmum33

opinions4u wrote: »

For crying out loud, given the piddling little balance pay it all off.

And clear the residual interest in full the following month.

Wow, harsh!

I didn't realise the minimum interest was £1, it never was when it was Egg so it never occurred to me! Yes, I'll pay it off as soon as I have spare money, and cancel the card!

As for the saving £16 in 5 years, I'm bad at updating things!

Thanks for the constructive answers, they're appreciated!

thenudeone

JimmyTheWig wrote: »

£30 isn't piddling to everyone, opinions4u.

5 months x £1 a month interest = £5; not £30

Perhaps not quite small enough to be piddling, but not far off.

As stated - pay the full statement balance two months in a row and the interest will stop.

opinions4u

madmum33 wrote: »

Wow, harsh!

Reading it back it does have a harsher tone than intended. Sorry.

Thanks for the constructive answers, they're appreciated!

The get it paid off comment stands. Don't let them make any more money out of you!

JimmyTheWig wrote: »

£30 isn't piddling to everyone, opinions4u.

Fair point.

But OP, given the terribly high rate you are being charged, it would make sense to prioritise this.

Much better worded!

Paul_Herring

madmum33 wrote: »

I didn't realise the minimum interest was £1, it never was when it was Egg so it never occurred to me!

As a point of historical interest, when it was Egg, the minimum was 50p - there are threads on here of people complaining when it was initially introduced. (2? 3? 4? years ago...)

Can't do much seaching on the PC I'm currently using (public PC) but I'm sure one of the other regulars could dredge up at least one such instance.....