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  • FIRST POST
    • Partridge89
    • By Partridge89 16th Apr 18, 9:57 PM
    • 47Posts
    • 47Thanks
    Partridge89
    Cancelled Barclaycard PPI, no change in minimum payment
    • #1
    • 16th Apr 18, 9:57 PM
    Cancelled Barclaycard PPI, no change in minimum payment 16th Apr 18 at 9:57 PM
    Hi all

    Posting this in the CC section as itís 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 hasnít happened - surely this is wrong. Have messaged them to query but the first reply merely assured me that the PPI has been cancelled, which isnít what I asked. Now awaiting a further reply. Any thoughts? Thanks to all for any help anyone can offer.
Page 1
    • molerat
    • By molerat 16th Apr 18, 10:36 PM
    • 19,327 Posts
    • 13,530 Thanks
    molerat
    • #2
    • 16th Apr 18, 10:36 PM
    • #2
    • 16th Apr 18, 10:36 PM
    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.
    https://www.helpforheroes.org.uk/give-support/donate-now/
    • TadleyBaggie
    • By TadleyBaggie 16th Apr 18, 10:38 PM
    • 2,904 Posts
    • 2,214 Thanks
    TadleyBaggie
    • #3
    • 16th Apr 18, 10:38 PM
    • #3
    • 16th Apr 18, 10:38 PM
    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]
    • PeacefulWaters
    • By PeacefulWaters 17th Apr 18, 12:31 AM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    • #4
    • 17th Apr 18, 12:31 AM
    • #4
    • 17th Apr 18, 12:31 AM
    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.
    • Partridge89
    • By Partridge89 17th Apr 18, 1:11 PM
    • 47 Posts
    • 47 Thanks
    Partridge89
    • #5
    • 17th Apr 18, 1:11 PM
    • #5
    • 17th Apr 18, 1:11 PM
    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.
    • zx81
    • By zx81 17th Apr 18, 1:25 PM
    • 18,649 Posts
    • 19,916 Thanks
    zx81
    • #6
    • 17th Apr 18, 1:25 PM
    • #6
    • 17th Apr 18, 1:25 PM
    That seems correct. Without the PPI, more comes off the capital.
    • Partridge89
    • By Partridge89 17th Apr 18, 1:32 PM
    • 47 Posts
    • 47 Thanks
    Partridge89
    • #7
    • 17th Apr 18, 1:32 PM
    • #7
    • 17th Apr 18, 1:32 PM
    Thanks zx81, I forgot to add that in each case the £150 is the minimum payment. This being the case, shouldnít the minimum payment have reduced by the PPI premium amount? Thanks again for your help.
    • zx81
    • By zx81 17th Apr 18, 1:46 PM
    • 18,649 Posts
    • 19,916 Thanks
    zx81
    • #8
    • 17th Apr 18, 1:46 PM
    • #8
    • 17th Apr 18, 1:46 PM
    No - because the premium is based on a % of your balance, of which PPI is a tiny amount.
    • Partridge89
    • By Partridge89 17th Apr 18, 3:29 PM
    • 47 Posts
    • 47 Thanks
    Partridge89
    • #9
    • 17th Apr 18, 3:29 PM
    • #9
    • 17th Apr 18, 3:29 PM
    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;.
    • PeacefulWaters
    • By PeacefulWaters 17th Apr 18, 5:00 PM
    • 8,318 Posts
    • 10,670 Thanks
    PeacefulWaters
    Your debt is reducing faster though.

    You'll be better off.
    • Shakin Steve
    • By Shakin Steve 17th Apr 18, 5:12 PM
    • 1,578 Posts
    • 1,346 Thanks
    Shakin Steve
    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.
    • dresdendave
    • By dresdendave 17th Apr 18, 5:22 PM
    • 778 Posts
    • 959 Thanks
    dresdendave
    If Barclaycard had reduced your minimum payment by £45 they would make more money out of you as the (interest bearing) balance owed would reduce at a slower rate.

    It appears they have acted in your best interest rather than their own.

    A thank you note would be more appropriate than a letter of complaint.
    • Partridge89
    • By Partridge89 17th Apr 18, 5:33 PM
    • 47 Posts
    • 47 Thanks
    Partridge89
    Can!!!8217;t disagree with anyone pointing out that I!!!8217;m reducing the capital more quickly. My main gripe with Barclaycard has been their inability to answer the question I was actually asking. Thanks all for your time with this query.
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