Barclaycard - sharp practice!

jollyrog

I'm currently in dispute with Barclaycard. I took advantage of their 5.9% for life of balance BT (0.482% month), but it's gone pear shaped.

The account was over a thousand in debt to begin with. I made two payments on 23rd March (£1,173) and early April (cleared 5th April, £8.35) to Zero the account.

On 6th April, I call to make sure the account is zero. It is. I then do a balance transfer for just over a thousand, at the 5.9% deal. Agent carefully reads me the script about how payments will be applied - heavy interest debts first, light interest debts last. No problem thinks I, as the account is zero.

Statement issued 7th April. Didn't pay a lot of attention, but looking back, two interest charges. One at higher rate, one (pennies) at lower rate. Nothing unexpected. Three quid in total. I wasn't fussed, as I expected some interest charge for the (previously) outstanding transactions, during the statement period. One of which was a £200 cash advance. (Yes, I know it's stupid, but I did.)

Just got my May statement. Cheeky sods have decided that the large payment I made on 23rd March will be used to offset the balance transfer that I did on 6th April. Therefore, they're insisting that the account wasn't really zero on 6th April before the BT and instead are saying that a payment made two weeks before a BT, will be used to clear a BT first, as it's in the same statement period. Madness!

I 'phoned them tonight and complained. On my May statement, I've been charged a total of £14.01 interest, when (according to my maths) I should be paying 0.482% of the BT - around a fiver. They insist that their application of payments received is correct. I'll get a 'phone call from a manager tomorrow, as it's been registered as a complaint now. But, they insist that the same will happen next month. Their suggested solution was to BT to another card, then BT back to Barclaycard! More lunacy.

This is very sharp practice and (ultimately) I think I've been offered a credit facility on terms that weren't explained. It's very naughty.


Roger

MarkyMarkD

This isn't particularly unusual.

You need to get a STATEMENT with a nil balance, not just confirmation that the running balance is zero, in order to ensure that payments won't get allocated "incorrectly".

daveboy

You'll probably find they're within their rights. If you get this sorted out it might be worth looking elsewhere - Barclaycard aren't great when it comes to pleasing people.

lipidicman

This does sound harsh, but I have seen advice that you must get a nil statement. I must admit that I could have easily fallen foul of this too. I would complain and not give up. I would then find a different credit card (unless you really want the life of balance deal)

Reaper

Take a look at the Texaco Card which is the current best, charging just 3.9% APR

jollyrog

Good news! After several 'phone calls today, Barclaycard saw my point of view and have adjusted the account accordingly and promised to refund the interest I've already been charged. I'm happy now but wouldn't be so if I'd taken "no" for an answer and not pressed the point.

Thanks for the replies.

Roger

Milarky

Cheeky sods have decided that the large payment I made on 23rd March will be used to offset the balance transfer that I did on 6th April. Therefore, they're insisting that the account wasn't really zero on 6th April before the BT and instead are saying that a payment made two weeks before a BT, will be used to clear a BT first, as it's in the same statement period.

This is very tricky indeed. They should have applied the payment when they got it. I don't see how they claim that it did not apply immediately in March as they seem to say that this only offest a item - the low rate BT - made two weeks later. Fine if they give credit for that item, but what do they credit it for during the two weeks before that - it had to be offsetting something else surely?

Something a bit similar happened to me over a Halifax 'upgrade' - the 0% balance was cleared shortly after the statement date just before the rate reverted. I got the upgrade available to me, with a further 9 months for BTs, cancelling the exisiting card DURING the currency of the statement period, and a NEW card. However the NEW card took over from the old card DURING the current statment period - effectively reverting the 0% rate to the 'standard' APR for the week or so before it was repaid and interest was therefore charged for this time. I complained about this to HFX but they only refunded half the interest in the end, and I didn't press them.

[Glad you sorted it out with Barclaycard, though, and got refunded]