Unwittingly spent on low rate for life of balance card!

Rumpleteeser

Hi. I'm new to this forum having only recently joined. I have a Barclaycard Flexi-Rate card which I transferred £7000 to last June at the 6.9% for life of the balance. Unfortunately in November 2012 the annual DD from the AA was taken out (I had foolishly forgotten that the DD was on that card) and of course the rate on the Barclaycard went up to 14.9%. Is there anything I can do to get the low 6,9% rate back again? Any suggestions would be gratefully received. Not the best at all this but am definitely learning through this site!

YorkshireBoy

Are you saying they've removed the 6.9% LOB rate from your transferred balance? If so, that would be unusual...unless you breach the T&Cs, ie miss a payment or exceed your credit limit.

I would have thought it would only be the CPA (not DD) amount that would have attracted 14.9% APR...and even then, due to the positive payment order, that would have been cleared by now.

chattychappy

Agree. Provided you've paid the minimums and stayed within your limit you should be OK. The standard rate will only apply to the purchase balance. Payments made will be applied to this balance first, with the LOB rate continuing on the LOB balance.

Chino

chattychappy wrote: »

Payments made will be applied to this [the purchase] balance first

Not according to Barclaycard's Balance Transfer Terms and Conditions for the Barclaycard Flexi-Rate card, which state:

"6. Whilst this balance is outstanding, any payment you make to the account will be applied in reducing your promotional balance before your standard balance."

http://www.barclaycard.co.uk/products/apply/balance_transfer_tandc/flexirate31.html

YorkshireBoy

Chino wrote: »

Not according to Barclaycard's Balance Transfer Terms and Conditions for the Barclaycard Flexi-Rate card, which state:

"6. Whilst this balance is outstanding, any payment you make to the account will be applied in reducing your promotional balance before your standard balance."

http://www.barclaycard.co.uk/products/apply/balance_transfer_tandc/flexirate31.html

That's a very old document. Indeed, the example at the bottom of the page is for a purchase made in July 2007. The 'rules' on payment allocation changed in 2009 I believe.

Naf

YorkshireBoy wrote: »

That's a very old document. Indeed, the example at the bottom of the page is for a purchase made in July 2007. The 'rules' on payment allocation changed in 2009 I believe.

Whenever they changed, it is now a legal requirement that payments are allocated to the portion of a balance which attracts the highest interest first.