Barclaycard: Payments being taken off the lower interest rate portion

Taadaa

I have an outstanding balance on Barclaycard. This is split into two parts. One smaller amount with a balance transfer fixed for the life of that balance, and a larger portion on the standard rate of interest.

I have just noticed on my online statement that the payment I have been making have been taken off the portion of the balance with the lower rate. According to this:

http://www.theukcardsassociation.org.uk/individual/influences_how_much_pay.asp

this is not correct. Am I reading this right? That payments should be coming off the portion of the balance that is standard rate, not the balance transfer bit?

[Deleted User]

It should come off the higher rate first. But that element has to have statemented before the payment can be allocated to it.

Was the higher rate balance a recent spend or has it been there for a while?

Jaroo123

I had the same problem recently and when I phoned BCard they said that this is how it is done!!!

I also had a couple different interest rates with MBNA and phoned them and they said you pay off the balance with the HIGHEST interest first.

Seems like different companies can choose whichever suits them???

chattychappy

Deleted_User wrote: »

It should come off the higher rate first. But that element has to have statemented before the payment can be allocated to it.

That's typically the case, but not always. I just looked at the Barclaycard site and the summary box says "If you do not pay the total outstanding balance in full by the payment due, we will apply the amount you do pay to reduce higher interest rate balances before lower interest rate balances. For further details, please refer to your credit card terms and conditions.", so that is unqualified except for the see T+Cs comment.

Now perhaps some kind soul can find the T+Cs. (YorkshireBoy is good at digging out such things.) I'm on a painfully slow connection right now.

[Whilst I'm at it, since the advent of summary boxes, I do find the proper T+Cs increasingly buried. I don't mind summary boxes, but IMHO they should never be displayed independent of the T+Cs. It's a practical encouragement for people not to check T+Cs.]

bengalknights

Its usually oldest debt cleared first

Taadaa

Thanks for your replies. Will ask them to clarify. The higher rate has been there for a while.

blitzboy

"If you do not pay the total outstanding balance in full by the payment due date, we will apply the amount you do pay to reduce higher interest rate balances before lower interest rate balances."

Seems pretty clear to me. If they do try to tell you that "that is how it is done" as someone said previously then I would ask to speak to a manager about it.

chattychappy

blitzboy wrote: »

"If you do not pay the total outstanding balance in full by the payment due date, we will apply the amount you do pay to reduce higher interest rate balances before lower interest rate balances."

Seems pretty clear to me. If they do try to tell you that "that is how it is done" as someone said previously then I would ask to speak to a manager about it.

Yeah, but it also says check the T+Cs. That is pretty clear to me.

blitzboy

chattychappy wrote: »

Yeah, but it also says check the T+Cs. That is pretty clear to me.

Which say the same thing....

Taadaa wrote: »

Thanks for your replies. Will ask them to clarify. The higher rate has been there for a while.

Any response?