Credit Card Interest - Should it be allowed in this scenario?

xlnc99

My elderly mother has had a Barclaycard CC since around 2004. It has a 10k limit and has been used to the max. Since around 2012 she was struggling and had a repayment plan put in place. Barclaycard also cancelled the card and she has been paying the min payment for the last 8,9 years for this card. Sometimes a bit more. They have continued to charge interest for the last 8 years for each payment.

She pays around 45 per month currently and is charged 23 interest. 

Is this right? Should she be charged interest for a repayment plan and the fact she no longer has the card as they have terminated it.

Thanks

D3xt3r5L4b

Yes it’s correct

DayDreamerandGeneralWaster

That's not bad for Barclaycard. When  my debt was at it's highest the minimum payment wasn't covering the interest.

Sounds like they shouldn't have lent to her in the first place though so l would call them and push for a freeze. It's worth a shot. Do you have power of attorney otherwise they probably won't speak to you. 

Thrugelmir

Perhaps you need to sit down with your mother and help her get a grip of her finances. 

xlnc99

Can i ask them for freeze? Will they oblige? I can speak on her behalf, i usually handle everything for her. Will the freeze impact her credit file at all (as old as she is, dont want anything negative).

Yes i am trying to help with the finances now and get this sorted out asap

whitesmith

No it's not ok - your mother is clearly in persistent debt and probably a vulnerable customer because of her age

you need to to engage with Barclaycard and put her on a zero interest repayment plan

xlnc99

Will this effect her credit file in any way shape or form.

I am thinking of writing a complaint to Barclaycard about the fact she has been charged interest for the last few years when they know she was struggling with debt and has been retired for many years. Not to mention they put her on a payment plan many years ago and closed her account because they knew she couldnt afford it.

Perhaps they may refund all the interest charges for the last 8 years back to her, or maybe just close her card and wipe the debt?

What do you think?

born_again

xlnc99 said:

Will this effect her credit file in any way shape or form.

I am thinking of writing a complaint to Barclaycard about the fact she has been charged interest for the last few years when they know she was struggling with debt and has been retired for many years. Not to mention they put her on a payment plan many years ago and closed her account because they knew she couldnt afford it.

Perhaps they may refund all the interest charges for the last 8 years back to her, or maybe just close her card and wipe the debt?

What do you think?

Getting the interest frozen will see a effect on her credit file. 
Has she been back to them to say she is really struggling? As while they are aware, so long as it is being paid. They take it that all is OK. 
So she would have to tell them that the repayments are causing a problem. Which will probably lead to a default on her file. 

When you say closed, I take it you mean they blocked the card to stop further spending.

All you can do is ask. They can either say Yes or No, but it has to be your mother that does it unless she goes to someone like Step Change.

sourcrates

It already affects her credit file, that should not be your number one priority.

Barclaycard won`t do anything they are not asked to do, if you don`t ask, you don`t get.

Send the letter.

Also you would be well advised to send a CCA request to Barclaycard as well, failure to provide would enhance her position and give her options.

eskbanker

xlnc99 said:

My elderly mother has had a Barclaycard CC since around 2004.

whitesmith said:

probably a vulnerable customer because of her age

xlnc99 said:

has been retired for many years

How old was she when she took out the card, and what were her plans for repaying it before retirement?  For the majority, retirement, and an associated reduction in income, is entirely predictable, so it's dangerous territory to play the elderly card - would she have taken out the card if they'd said that she had to repay it all before retiring?  Should credit card companies only lend to under 50s maybe, or enforce higher minimum repayments for those over a certain age?

xlnc99

What effect will have the interest frozen be on the credit file, i.e what will it say on her credit file if they freeze the interest. That's a new one for me, its good to know for the future.

In response to all the questions
1 - She hasnt been back to them to tell them shes struggling, shes just got on with the payments. Previously they did a arrangement to pay (it says so on her credit file for a few years in around 2011-2014), but then that stopped. Funnily enough the arrangement to pay still charged interest per month? So i am trying to figure out why it says arrangement to pay on her file when she was always making at least the min payment and getting charged interest. That must be an error surley?

2 - Card was no active, Barclaycard just closed the account a few years back. Presumably because of her struggles. Last card she had with them ended in 2016 but was blocked before then.

3 - CCA request - what is that? What will that show?

4 - She must have been around 50 when taking out the card, she was full time then. PLanned on repaying it but heart attack and severe medical conditions meant early retirement which was unplanned. She had a good job aswell. It all went pear shaped in around 2008 due to her medical condition, so was forced to retire then it got worse and worse each year and currently is registered disabled. Dont get me wrong, shes not bed bound or anything but cant really walk much, struggles and also has a pacemaker fittied, along with various other medical stuff