Barclaycard

Cannonfodder

New to the forum, at least as a registered user, but used it a fair bit for finding very useful information out.

Just thought I'd post that in my latest Barclaycard bill it seems the interest calculated and estimated minimum repayments are wrong.

I made a large purchase in October which I know I should have moved off the card but I didn't and as a result of the error my automatic direct debit didn't cover the cost of the interest and since I was at the limit they tried fining me.

Not sure if it's more widespread than just me, but the reply I got from them contained a fairly libelous quote that had little to do with my original message, so I'm guessing there's a certain amount of cutting and pasting going on. Worthwhile checking the interest they've charged you and their estimate for what you should be paying if you have one of their credit cards.

The estimated interest for January also appears to be wrong (it doesn't equal the quoted interest rate being applied) with the minimum payment demanded roughly £100 higher than december with no spending on the card.
Just to be clear, in my case the estimated interest, applied interest and minimum repayments for December are wrong, and looking forward to the estimates for January they also appear incorrect.

PeacefulWaters

It would help if you quoted some figures and interest rates.

the reply I got from them contained a fairly libelous quote

That is a strong allegation.

How can they libel you when nobody else sees / hears it?

bsms1147

I would be surprised if it was Barclaycard's calculations at fault here.

Post the APR and the figures you're dealing with so we can help understand what's happening.

forgotmyname

bumped to remove spam.

Cannonfodder

It's a 2.005% monthly interest rate quoted on the statement, 26.9% APR.

For December on a balance of £8071.71 with no transactions in that month interest charged was £201.46 with the minimum payment demanded £161.43

The January figures currently stand with no further transactions at Closing balance £8123.74 Estimated Interest Next Month £ 179.95
The minimum amount £292.56

The January figures currently include a £12 fee which has been refunded but isn't registering on the cards balance yet. It doesn't take a genius to work out that with a higher balance and the same monthly interest rate the charged interest shouldn't be lower so there's definitely a problem.
£8071.71 x 0.02005 = £161.84 that should have been the interest on the december balance.

[Deleted User]

it looks right to me.

The £201.46 won't have been the interest charged in Dececember. It will be estimated interest for Jan, as the min payment of £161 wouldn't have covered it.

Your Jan min payments of 292 looks to be the actual interest (estimated in Dec) plus 1% of balance, which would be right.

Cannonfodder

I'm sorry zx81 but I copy and pasted directly from the statement. Nothing you have said is correct.

£201.46 was the amount of interest actually charged in december with the minimum payment of £161.43 taken by direct debit. The minimum payment couldn't possibly cover the interest charged let alone a credit repayment.

292 is not the actual interest (estimated in Dec) plus 1% of balance assuming the £201.46 interest that you appear to be assuming, that would be £282.70 and interest should not being charged on an estimated basis anyway, that would actually be against the law. Barclays use the Average Daily Balance method for calculating interest which on a card with no transactions isn't exactly difficult.

thebritishbloke

Cannonfodder wrote: »

I'm sorry zx81 but I copy and pasted directly from the statement. Nothing you have said is correct.

Actually, everything Zx81 said is completely correct, it's you who is wrong.

Interest isn't added onto your first statement, it's added on to the second and onwards. The reason your minimum payment would've been lower, is because it didn't include any interest.

BarclayCard aren't in the wrong here. And you can't blame them for the DD failing when you didn't have enough money to pay it.

meer53

I know people like to knock financial institutions but in all honesty, do you expect Barclaycard to print a statement with incorrect calculations on ? It's highly unlikely.

As for the estimated interest for January, the clue is in the word "estimated". How can you claim that to be wrong if it's estimated ?

Cannonfodder

First off - PeacefulWaters is correct, it would be libelous if I were to repeat the quote here, it was inflammatory not libelous. The quote was supposed to come from me towards Barclaycard but didn't have anything to do with any communications I've ever sent to them, or considering my position any financial institution I may work with

The rest of you simply appear to be hectoring. I've provided the necessary figures and they are accurate both in scale and timing. Go away and actually do some sums if you want to prove me wrong. The posting was intended as a warning for people to check that their own payments/charges are correct.

SnowTiger

Cannonfodder wrote: »

First off - PeacefulWaters is correct, it would be libelous if I were to repeat the quote here, it was inflammatory not libelous. The quote was supposed to come from me towards Barclaycard but didn't have anything to do with any communications I've ever sent to them, or considering my position any financial institution I may work with

The rest of you simply appear to be hectoring. I've provided the necessary figures and they are accurate both in scale and timing. Go away and actually do some sums if you want to prove me wrong. The posting was intended as a warning for people to check that their own payments/charges are correct.

What you have posted is unclear. For example, you wrote:

The January figures currently stand with no further transactions at Closing balance £8123.74 Estimated Interest Next Month £ 179.95
The minimum amount £292.56

How do you know what the minimum payment on your January statement will be?

Another example is that you mentioned a £12 fee, which is presumably for going over your credit limit. What's the limit? £8,000? A casual glance at the figures suggests there's £50 astray somewhere, but what you've offered us is an incomplete picture.

We need to see the statements really, rather than edited highlights with commentary.