Persistent debt and the high APR method

Dandytf

redux wrote: »

I don't know anything about details of the regulations, but if this was also accompanied by a certain amount of new spending, I could see some sense in condition flags remaining.

Apologies if that guess is wrong.

my guess is over almost 36mths the person has paid more in interest, the mentioned example is from one payment+interest only

SecretDuck

redux wrote: »

I don't know anything about details of the regulations, but if this was also accompanied by a certain amount of new spending, I could see some sense in condition flags remaining.

Apologies if that guess is wrong.

I haven't spent on any credit cards for a long time.

Maybe they thought that I should make up for the previous months where I paid only the minimum?

nicobrum

redux wrote: »

I don't know anything about details of the regulations, but if this was also accompanied by a certain amount of new spending, I could see some sense in condition flags remaining.

Apologies if that guess is wrong.

I've just checked all my Barclaycard personalised statement emails received since last November against the interest charged on those month's statements and the personalised amount is just over double the interest by a few pence. Any new spending, unless it contributed to the interest payment, wasn't reflected in it and there was some on a few months.

I've been classed in persistent debt since the rules came in August/Sept last year, although I have only been paying more capital off than interest since October as I only managed to get back into full time employment that month. The "delightful" personalised statement emails each month tell me I'm on course to get out of persistent debt in February as long as I continue to pay at least that amount each month. Well so far in the last 16 months (will be Friday when its pay day and this month's payment will be made although not due until 14/01) I've paid £1,734 in interest and £3,625 in capital (total payments being £5,359) so I don't think there is much chance I won't get out of PD in February unless I miss a minimum payment. There were a couple of months earlier in the year when I paid slightly less than the personalised amount and August/September last year I only paid the minimum, but since June I have paid well over the personalised amount (over double this month). This does tend to suggest it is definitely accumulated over the 18 month period.

OP have you worked out how much you've paid in interest compared to capital since they classed you in PD? It may be that their request for more than just over double the interest charged may be down to trying to catch up if you've not paid as much capital compared to interest and they are trying to encourage you out of PD within the second 18 month period.

That said, I agree they are very aggressive with their communications and the personalised statements definitely read like demands and not suggestions. I don't get anywhere near as much correspondence about PD from Halifax and Nationwide), of which I've been in PD just as long, with both due to finish early next year too unless I miss a payment. While Barclaycard was only just the highest balance I owed by just over £1k in October 18, I actually owe Halifax more now compared to the current Barclaycard balance because they very nicely offered me a BT in October of 0% for 9 months. I gratefully took advantage of it and shipped £2k from Nationwide (highest interest rate) to Halifax. I still don't qualify for any new BT cards but hopefully things may improve over the next 6 months. This was also the first 0% BT I've been offered for some considerable time. All Barclaycard could do was drop my credit limit in July by £1.1k because I'd paid off £2.5k from the total owed .... so of course my usage to credit ratio went back up somewhat.

Dandytf

OP in addition to above post.
I chose to call card providers and requested to bre transferred director to their collections dept, even though I wasn't in collections as such -that dept were very Knowledgeable in advising what cost is required and by which date to at least reset Persistent Debt Callander or possible be removed from that cycle of requests.