Barclaycard- payments applied wrongly?

[Deleted User]

Here it is - not sure if Im right.

OK. £2000 outstanding on Barclaycard. £1000 is balance transfer ending 1/7/15, one is balance transfer ending 1/12/15. Both are 0%.

So 25/6/15 I pay £500. It appears to be correctly allocated to the first ending balance transfer. OK so far.

1/7/15 comes and goes. Now my understanding is that I've now got £1500 outstanding. £500 at standard rate, £1000 0% until 1/12/15. So on 5/7/15 I pay another £500 off. Expecting to just pay a few days interest.

But no, according to my statement I've got £1000 but £500 at standard rate and £500 at 0%. So the £500 was applied to the 0% balance transfer.

Am I wrong here but I thought the rules were that payments had to be applied to highest interest portion first, followed by closest ending special rate?

In this case, they've not done this. Am I missing something?

If I've done this wrong, looks like I'll have to pay off all my balance transfer before I even get to attack the standard rate.

lee111s

Have you spoken to Barclaycard? I'm sure a quick phone call would have you with all of the information you require

grumbler

Barclaycard Platinum / Initial / Gold / Classic

How we allocate payments
If a payment you make is less than your total outstanding
balance as shown on your statement, we’ll use it to reduce
the balance with the highest interest rate first. If any of the
payment is left over, we’ll use it to reduce the lower rate
balances.
If you have more than one promotional balance at the same
interest rate, we’ll use your payment to reduce the balance
with the promotional rate that ends first. If the standard
balance includes default fees, we will pay those off before
the rest of the standard balance.

That said, it would be wrong to assume that this is the same for all cards as, unlike Barclaycard, some don't clarify this in the T&C.