Barclaycard to introduce an annual charge...

vyvyan_2

I did a quick check but I can't see any other thread on this. I apologise if this has been covered already....

http://news.bbc.co.uk/1/hi/business/6684683.stm

ontheup_3

Yes but its only for non used cards or ones that are used very little , and the fact they have introduced a new deal where if you spend £50/month they lower your APR to 6.9% shows they much rather you use the card than not !!

vyvyan_2

I wonder how that would apply to my usage - I haven't 'used' the card for ages probably for at least a year. I'm just plugging away paying off the balance by the minimum payment each month topped up by paying chunks off as and when I can.

ontheup_3

Hmm now that is a tricky one !!! in the word "USAGE" you would think it would mean spending on it , but who knows !!!

vyvyan_2

I would hazzard a guess that as they are making money out of me paying the interest (while I'm reducing the balance as fast as I can) then that'll satisfy the criteria. I guess their target is the occasional user who pays off the balance straight away incurring no interest charge.

UK007BullDog

Knowing how sneaky they are and the jargon the credit card people in general use I would suspect that it is the ones who do not use the card at least once a quarter to buy something who will get charged. They left the door wide open as to the definition of the word "usage". If you just pay off the debt you have incurred and do not "use" it to purchase stuff further then you might get lumbered with a charge.

I would presume they will send a letter to all their customers explaining things. I Hope! Otherwise we will cancel our card and move to a fees free supplier.

Debt-Free_2

Hi
Why don't we just teach these money grabbing companies a lesson, and just closed our accounts. All they are doing is just copying this Government's lead, and inventing charges to suck us dry. Of course you could switch to another credit card operator, but I am afraid that they will all just follow suit eventually. I mean do we really need to have a credit card, and if they get a way with this, there is a chance they also could apply this to your Debit-Card etc, etc. The only way to beat them is to take business away from them.

We must stand up this absolute greed, that seems to be taking over our nation. Once we do, they will soon get the message.

Have a Nice Day
William

MPH80

I'm a bit confused - what's wrong with this?

I've heard no end of complaints about banks being honest about charging people what it costs for current accounts - so why not for credit cards?

If you hold a card - don't use it often and don't carry a balance - then you cost the company money. It DOES cost to maintain a card, not only do they have to send you statements and changes to T&Cs but you are taking up space in their databases and their backup tapes.

If, however, you use it often, then you are covering their costs through their transaction charges and if you carry a balance - they are making money off the interest.

M.

tom188

Debt-Free wrote: »

Hi
Why don't we just teach these money grabbing companies a lesson, and just closed our accounts. All they are doing is just copying this Government's lead, and inventing charges to suck us dry. Of course you could switch to another credit card operator, but I am afraid that they will all just follow suit eventually. I mean do we really need to have a credit card, and if they get a way with this, there is a chance they also could apply this to your Debit-Card etc, etc. The only way to beat them is to take business away from them.

We must stand up this absolute greed, that seems to be taking over our nation. Once we do, they will soon get the message.

Have a Nice Day
William

This is happening industry wide, so where are you going to take your business to? It costs the banks money to operate accounts, and with the advent of reclaiming charges they need new revenue streams. I remember paying for banking when i was younger, its just regressing that way again.

Debt-Free_2

tom188,
I hear what you are saying, but the advent of reclaiming charges, is only part of the reason. After all they still making massive profits, and will continue to
make even more in the future. And before you mention it, I believe very much in capitalism, has someone who has owned a couple of businesses. Also they are dictating to the customer, how they operate the account, and are in a way, encouraging people to take on more debt, then they can afford, as they do not say what constitutes low usage, in their Teams and Conditions. This is all about fairness, and being ethical.

What I am against is the gross exploitation of the masses by big business, who sole aim is power over all of us, and there increasing influence over our leaders, which is now rearing its ugly head.

Btw you mention current accounts, I have had a current account since the early 1980s, and I don't remember being charged a fee for using my account.
In any event with some of these current accounts today, they only pay you about 0.01 interest, unless you pay in around a £1000 a month so ineffect, they are getting to used your money for free, that's a charge!

I feel that if credit card companies want to charged, then they should bring back the annual fee, but of course, what's the betting that this will also be added to the low usage fee as well.

And I did say that the best way is take your business nowhere, just don't have a credit card!

Best Regards
William

poppy_f1

from what i remember when i first took a barclaycard out in about 1995 there was an annual fee of a tenner anyway although since mine was a student bcard i beleive i was exempt from paying it and by the time i graduated they had scrapped it anyway