DMP - Help with Barclays Credit Card

CU_5393

I hope I have posted this thread in the correct place? Apologies; I'm new to this!


My wife and I are a year into our DMP with Pay Plan, and I've got to say it's going well (total debt 40k plus). We are in such a better place. I've browsed this forum over the last few months for advice and tips without actually joining or posting any threads.


A lot of our debt is owed to Barclays and in particular we owe them around 11k for two credit cards. Although they have frozen our interest on loans/overdrafts they haven't on our credit cards.


The interest is currently 12.9% which on one of the credit cards equates to £67.83 of interest for a payment of £133.61. Does anyone have any advice about how we could approach Barclays to freeze the interest. Pay Plan have tried their best and failed. We haven't missed a payment in a year and increase our payments as and when we can. It would make such a big difference.


Any advice would be greatly appreciated!

moohound

They froze my interest straight away for 6 months in 2012, then it was to be reviewed, so they will do it, for me it was the smallest debt at about £450. I was with PayPlan as well.

Have you written to them yourselves? I think there is a template letter for this somewhere on the forum.

CU_5393

No I haven't written to them yet. I wasn't sure if I should ask Payplan to try again or do it myself. I was looking for some direction from some of the "old hands" out there. Thank's I'll have a look for the templates.

heatherks

i was told that i you paid them anything over 1% of your balance it would accrue interest

i did complain and they reduced interest to 3.9% i wrote to them after CAB failed to get them to reduce or freeze my interest when they upped mines to 12.9 without notice

Monkeyballs

Hi Op,

I've spoken to them and they have confirmed to me that it is their policy to continue to charge interest if payments made are over 1% (although this doesn't seem consistent with what other members have posted on this site in the past).

My understanding was that Payplan was a little more flexible with payments than Step Change (whom I'm with)? Are you sure your budgets are correct? Maybe you need to look at them again, if you were paying less then the %age would drop... Anything left over at the end of the month could be saved to make F&F offers later?

MB

dancingfairy

Firstly I feel that making extra payments when you can possibly isn't helping your cause. It may be that you've reviewed your budget every few months and found extra savings you can conistently make but it sounds more like if you've had a good month you've thrown more at the debts? On the one hand you say you're struggling, yet on the other you are paying more than you've agreed. I think strangely you'd be better off paying 1 amount and sticking to it. Review your budget in say 6 months or a year and in the mean time stick any extra in an emergency fund or save it for making full and final offers.
The rule about them refusing to stop interest and charges if you pay above 1% sounds ridiculous if it's true. What a stupid rule.
I would write (on paper) a letter to Barclay and mark it complaint. My main points would be:
1) they are continuing to charge interest and fees despite other Barclays products assisting you (and all your other creditors if appropriate). They may claim that they are seperate things but in my mind Barclays is Barclays and they should all play fair.
2) despite written requests from Payplan (check this) they have refused to stop interest and charges
3) they are therefore not treating your fairly and are not assisting you to get debt free and are keeping you in debt longer.

You might want to google 'treating customers fairly' and OFT debt collection guidelines or search this site so you can quote some things at them.
If your complaint (do mark it complaint so it is clear what it is) is not dealt with in a way you are happy with by Barclays then you are able to go to the financial ombudsman. This will be more work for Barclays and it will cost them money so hopefully they will sort it out before it gets to that stage (but don't bank on it).
df

Puzzcat

Hi,
If you go on the dmp mutual support thread 10 and select thread 9, on page 105 there is template letter you can use for this purpose.
Hope that helps.
Puzz

Edited to add check out post 198 on the current dmp mutual thread for a bc success!

sourcrates

CU_5393 wrote: »

I hope I have posted this thread in the correct place? Apologies; I'm new to this!


My wife and I are a year into our DMP with Pay Plan, and I've got to say it's going well (total debt 40k plus). We are in such a better place. I've browsed this forum over the last few months for advice and tips without actually joining or posting any threads.


A lot of our debt is owed to Barclays and in particular we owe them around 11k for two credit cards. Although they have frozen our interest on loans/overdrafts they haven't on our credit cards.


The interest is currently 12.9% which on one of the credit cards equates to £67.83 of interest for a payment of £133.61. Does anyone have any advice about how we could approach Barclays to freeze the interest. Pay Plan have tried their best and failed. We haven't missed a payment in a year and increase our payments as and when we can. It would make such a big difference.


Any advice would be greatly appreciated!

How old are these CC debts roughly OP ?

Mort

I had some success with Barclaycard in the early days of our Payplan DMP using one of the stock letters from their site. They agreed to freeze interest for a while. It did go back up after a while. You have nothing to lose by writing to them yourself.

One thing I noticed during the course of our DMP was the way that companies would act differently with various people on this forum. Just keep trying.

I would advise you to keep to the agreed payments and only increase them in line with your annual review. If you have extra money keep it for an emergency fund.

eyeopener2

I had the same problem with Barclaycard. Intransigent, awkward, officious.

First 6 months, interest frozen but as my payment crept over 1 % it went up to 6.9 then 12.9.

It's what they do and no matter who I complained to, went up to Mrs chief exec, I didn't get any joy.

I hope you do better.

GibbsRule_No3

My DMP would have finished by now if it wasn't for the £2000 + interest Barclaycard have added. They also said they would not accept F&Fs when I had a PPI refund. Luckily I only have one payment left and I can wash my hands of them.