My story with Barclaycard.

mirand

For the last year I have been making the minimum payments to my credit cards, due to some difficulties and in the last four weeks I kept receiving letters and text messages from Barclaycard informing they are suspending my cards.

I find it rather perplexing that Barclays Bank and Barclaycard, with complete disregard to financial struggles people are going through at the moment, are treating customers in such manner.

The did a good job in the summer offering payments holiday and this made a huge difference to thousands yet now, going through the second wave of the pandemic and with uncertainties even greater, the bank choose to take such harsh approach.

I appreciate the bank’s concern about persistent debt but surely suspension is a last resort. They don’t seem to offer other options i.e. reducing, waiving or cancelling any interest or charges so one can afford to repay more quickly. Sums up that years of custom is nothing when it comes to profit.

Wondering if anyone has been through this before and what would be the best thing to do if/when they suspend the cards.... i.e. can I negotiate interest suspension? 

Thanks. 

[Deleted User]

You could, but you're going to do serious damage to your credit files.  Defaulting would be a better option.

Suspending use of your card is the simplest way for them to protect both you and them and prevent you from worsening your position.  Once you get back on track with large payments, it should be unblocked as a matter of course.

Sandtree

mirand said:

For the last year I have been making the minimum payments to my credit cards, due to some difficulties and in the last four weeks I kept receiving letters and text messages from Barclaycard informing they are suspending my cards.

I find it rather perplexing that Barclays Bank and Barclaycard, with complete disregard to financial struggles people are going through at the moment, are treating customers in such manner.

I am surprised its only for the last 4 weeks, most card issuers have been sending out "persistent debt" letters for a year or so now and the FCA has been doing various studies and guidance notes since early 2018. To be in persistent debt I believe requires your repayment of debt to have been lower than your payment of interest/fees for the last 18 months.

As far as I am aware the FCA hasnt suggested any changes to persistent debt rules due to the pandemic... whilst you're not happy about them they are considered by the FCA to be in the customer's favour. 

Thrugelmir

mirand said:

I appreciate the bank’s concern about persistent debt but surely suspension is a last resort. They don’t seem to offer other options i.e. reducing, waiving or cancelling any interest or charges so one can afford to repay more quickly. Sums up that years of custom is nothing when it comes to profit.

Banks aren't in the business to provide free money. They are likewise under increasing regulation to lend responsibly. Moving away from the days of cheap and easy credit. Breaking the cycle of persistent debt is initially painful. In the longer term you'll be far better for the move. 

Tesco's nor any other business doesn't give me a discount for years of custom. 

born_again

https://www.moneysavingexpert.com/news/2020/11/barclaycard-minimum-payments-increase