Barclaycard DD for minimum payment on and still gone overlimit without spending

YorkshireBoy

shortcrust wrote: »

Eh? They've offered to give you all you money back and you've said no? What more are you hoping for?

8% interest (less tax?) at a guess?


A bit like my boss...enjoyed (his own words) many years of PPI on his mortgage and various loans, then claimed around £14K back last year, plus 8% interest (less tax?).


Meanwhile I, who was self-insuring by building a rainy day fund to cover the same possibility, was earning probably 4% AER average over the same period in my savings accounts.


Who's the mug!?

gozmani

ok, I can see that what I was paying monthly was taking less than the £8 off the balance so it is now clear where the increase came from. The question is 'Can they do this?'
PPI was charged by Barclaycard, it may be a different department but it is part of Barclaycard...

StuC75

But was it showing on the statements? in which case why did you not take notice of this and then action upon that?

Its not really a case of 'Can they do this?', as it is 'Why did you let it happen?',,,

gozmani wrote: »

ok, I can see that what I was paying monthly was taking less than the £8 off the balance so it is now clear where the increase came from. The question is 'Can they do this?'
PPI was charged by Barclaycard, it may be a different department but it is part of Barclaycard...

YorkshireBoy

gozmani wrote: »

ok, I can see that what I was paying monthly was taking less than the £8 off the balance so it is now clear where the increase came from. The question is 'Can they do this?'

Yes.

PPI was charged by Barclaycard, it may be a different department but it is part of Barclaycard...

Read your T&Cs. They'll no doubt say the minimum payment is 2.25% of the balance or 1% plus interest, whichever is the greater.


However, the interest is what accrued 'last month', not what will accrue 'this month'.


Each and every one of your monthly statements gave an "estimated interest next month" figure, based on 2 assumptions:


1. You make the minimum payment on the due date, and
2. You make no further purchases.


If you're paying PPI then it follows your interest will be higher than the estimated figure, because PPI is a 'purchase'. You failed to read your statements, or failed to understand them (in which case you should have asked for clarification).


When you sail so close to the wind you need to be on top of your game!