Cancelled Barclaycard PPI, no change in minimum payment

edited 30 November -1 at 1:00AM in Credit Cards
12 replies 1.4K views
Partridge89Partridge89 Forumite
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edited 30 November -1 at 1:00AM in Credit Cards
Hi all

Posting this in the CC section as it’s more of a query about the monthly payment than PPI mis-selling. I cancelled the PPI in November and expected the minimum payment to fall by the amount of the PPI premium but this hasn’t happened - surely this is wrong. Have messaged them to query but the first reply merely assured me that the PPI has been cancelled, which isn’t what I asked. Now awaiting a further reply. Any thoughts? Thanks to all for any help anyone can offer.
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Replies

  • moleratmolerat Forumite
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    What is the minimum payment from your T&Cs ? Usually it is a "the higher of" scenario and the removal your PPI payments may not have made any difference to how that is calculated.
  • TadleyBaggieTadleyBaggie Forumite
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    From the Barclaycard T&C's:
    Monthly payment
    We'll send you a monthly statement to tell you what the minimum amount you need to pay is and when the payment is due.
    You must pay at least your minimum due amount in Sterling by the due date shown on your statement every month. Remember, if you only make your minimum payment each month it'll take longer and cost more to pay off your balance. You can always choose to pay more.
    Your payment due date will be at least 20 days after we produce your statement. Unless we tell you otherwise, your minimum payment will be the highest of the following:
    * £5 (or the total outstanding balance if it's less than £5)
    * [A percentage*] of your main balance plus any purchase plan instalments due for that month (if you have any purchase plans on your account)
    * An amount equal to any interest, default fees or account maintenance fees that have been added to your account since your last statement, plus [a percentage*] of the rest of your main balance plus any purchase plan instalments due for that month (if you have any purchase plans on your account). Default fees and account maintenance fees will only be included if the percentage referred to above is 1%
    [* This percentage is unchanged and can be found on your monthly statement]
  • PeacefulWatersPeacefulWaters Forumite
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    As above, the percentage of debt to repay remains unchanged.

    For example, 2% of £2,000 is £40. 2% of £2,016 including PPI is £40.32. In my example, your payment will have reduced but only by 32p.
  • Partridge89Partridge89 Forumite
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    Thanks to all for your input. I!!!8217;m currently on my third message to Barclaycard after receiving two responses to questions that I hadn!!!8217;t asked. My previous statements were broken down as follows (rough amounts)

    Total payment amount then:£150
    PPI premium: £45
    Interest charged: £85
    Capital repayment: £20

    Total payment amount now: £150
    PPI premium: £0
    Interest charged: £85
    Capital repayment: £65

    The balance is £5700 at a rate of around 19%. With this info can anyone shed any more light? Considering a complaint to Barclaycard for no other reason ATM other than that they refuse to understand the question I!!!8217;m actually asking. Thanks again to all.
  • zx81zx81 Forumite
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    That seems correct. Without the PPI, more comes off the capital.
  • Partridge89Partridge89 Forumite
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    Thanks zx81, I forgot to add that in each case the £150 is the minimum payment. This being the case, shouldn’t the minimum payment have reduced by the PPI premium amount? Thanks again for your help.
  • zx81zx81 Forumite
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    No - because the premium is based on a % of your balance, of which PPI is a tiny amount.
  • Partridge89Partridge89 Forumite
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    Thanks again for your help, at the moment I could do with having the funds in my current account instead of on the CC but sounds like I!!!8217;ll have to live with it. Thanks again !!!55357;!!!56898;.
  • PeacefulWatersPeacefulWaters Forumite
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    Your debt is reducing faster though.

    You'll be better off.
  • Shakin_SteveShakin_Steve Forumite
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    Your capital repayment has increased by over 200%. At £20 a month you were only reducing the capital by £240pa, at £65 a month you are reducing it by £780pa. Rejoice.
    I came into this world with nothing and I've got most of it left.
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