Barclaycard - Balance Transfer con?

niknaksavings

Hi

Can someone answer my question please?

I took a 0% balance transfer out more than a year ago with my barclaycard, which expires in May.

Several months later I was offered another great deal, this time at 0.9% until Jan 09, which I took as well.

I have now found out that my repayments since then have been to pay off the larger amount on the .9% deal, leaving the 0% deal static, and thus is about to revert to the full rate. I am waiting to hear if when it returns to the full APR, whether or not that will be the one aid off first or not. Seems unlikely somehow!

I believed that they will always clear the dept on the best offer, so that you are stuck with the higher interest offer for longer. However, they seem to have realised this and have done the opposite! Does this sound right to anyone?

Thanks in advance!
A soon to be penniless, previous MSE. :mad:

Volcane

It all depends what's in the T&C's, have you checked and rechecked them?

niknaksavings

No I didn't , I worked it on the basis that the card company will want the lower APR paying off first, leaving the customer with the higher APR for longer. I was sure that was how the system worked! Big mistake!
I now see that the 0% apr will go back to 19.9 and future payments will payoff the .9% loan, leaving me with the 19.9% untouched - Great! :mad:

Still waiting for a manager to call me back 2 days later...

tom188

No I didn't , I worked it on the basis that the card company will want the lower APR paying off first, leaving the customer with the higher APR for longer. I was sure that was how the system worked! Big mistake!

From the Barclaycard website

Allocation of payments

Payments you make will reduce your balance in the following order:

1. Promotional balance transfers and fees
2. Promotional purchases
3. Interest, fees and charges
4. Standard rate purchases and balance transfers
5. Cash Balance

Whilst the 0% deal and the 0.9% deal are running you have two promotional rates (ie both 1 in order of payments).
Once the 0% deal runs out any outstanding balance will go to your standard rate (4), thereby remaining on your card until you have repaid the balance on the 0.9% rate (now still in order (1)) or that has run out as well.

Completely standard industry practice im afraid, the only exception (i think) being nationwide.

YorkshireBoy

tom188 wrote: »

From the Barclaycard website

Whilst the 0% deal and the 0.9% deal are running you have two promotional rates (ie both 1 in order of payments).

...and the reason you have been reducing the 0.9% balance first is...

7. Your monthly payments will reduce your promotional balances first (longest duration first). so you will be charged interest (where it applies) on other balance and new spending whilst your promotional balances are paid off. Obviously the more you pay back, the quicker your balances will be paid off.

http://www.barclaycard.co.uk/personal-home/cards/platinum-hero/platinum-0-interest/index.html (click the BT T&C's tab)

King_Weasel

Barclaycard are trying to tempt me with bt cheques while I am still paying off an existing 0% bt. Presumably I shouldn't touch their new offer until I have cleared the existing debt (which I will do at the end of the 0% period). [By that time, the new offer won't be worth it because of the 2.5% fee, but that's by the by.]

If I am right this is indeed a con - even if it is buried in the T&Cs. Maybe Martin should highlight this alongside his embargo on using bt cards for purchases.

speedbird1973

It's not "buried" in the T&C... it's in the T&C in the same size font as all the other T&C you signed to say you'd read! you didn't lie and not read the T&C did you??

It's also all over the MSE website if you'd bothered to read it before you f*cked up, rather than afterwards!

King_Weasel

And if you'd bothered to read my post, speedbird, you will see I haven't f*cked up. But I hadn't seen it on the MSE website and am reassured if it does give due prominence to this con.

speedbird1973

If it's in the T&C.. how on earth is it a con?

King_Weasel

Because, speedbird, when a cardholder gets those cheques with the 0% figure writ large, they don't necessarily rush back to the T&C's to study the terms. They should, of course, and we can feel nice and superior if we do, but Barclaycard themselves evidently think enough of their customers will fall for it to make it worth their while making the offer.

niknaksavings

Well it got me, but that was partly because I worked it out wrong in my head (as I thought I knew the system) twice. We live and learn... still waiting for customer services to call me back... useless.