5% jump on Barclaycard interest rate

AlexGuinness

I have been going back through my statements and noticed that the rate on my BC has not just gradually increased as I had previously thought.

It jumped up by 5% in August last year (the first higher rate statement was printed a day after I called them to inform of new address).

I mailed them the other day to ask why it had increased. I received the following reply:

"The increase in purchase rates and cash rates are part of our ongoing activity that we always communicate through a Notice of Variation.

These rates have been driven by the announcement from the Office of Fair Trade (OFT) that credit card issuers must decrease default fees."

Now, to me this seems very surprising!

I had wondered if it was something to do with the new address or the fact that I had been lumbered with dealing with someone else's debt at my last address (which was already in the hands of the Bailiffs when I discovered it).

I am in the process of checking the 3 CRA's to see if there is anything else as I don't have the best credit history, but does anyone have any advice on the reply from Barclaycard, please?

Anyone else had a similar experience?

wyebird

I don't think it's personal. There are loads of threads where this has happened to other people with lots of different cards. Probably a backlash to the reduction in charges that they can levy.

wayoflife

This is not a personal comment to you.

What they are saying in short is because the OFT have finally (rightly or not) restricted the charges they have thrown their dummy out of the pram because the CEO and other executives might walk away with only 4.2 million in bonuses rather than 4.3...lol

this will inevitably happen, as will charges for bank accounts to run day to day.

Also as the bandk of England Base rate has now gone up again, the APR will inevitably go up. Obviously 5% is alot (considering their savings will have gone up only 0.25%) but hey what can ya do!

Pay off in full and it is a 0% and unless they introduce an annual fee or what a b****rd company have done not naming any names... (cough...HALIFAX!)
rebranding it to 'no interest free period for purchases'.

as for the comment These rates have been driven by the announcement from the Office of Fair Trade (OFT) that credit card issuers must decrease default fees."

This is put as if they have to do it and they have been bullied into this so its not their fault. Many peoples opinions are that they shouldnt be charging these in the first place, so dont accept this as a valid excuse!