Barclays Persistent Debt

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Sp3no82
Sp3no82 Posts: 1 Newbie
in Credit cards
Hi Guys.
I have had a Barclaycard Credit card for a while now, recently they sent me a letter regarding persistent debt and suggested raising my minimum payment which I did. I then recieved another letter a few months later suggesting I raise it again but I chose not to. Today I recieved a letter informing me that my minimum payment is being increased by 50% and if I fail to make the payment I will incurr charges!!
Is this legal it does not seem fair, by all means I want to pay this card off but in an affordable way. Their increase will literally break the bank.
Help advice needed :mad:

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    Of course.
    They want their money back
  • McKneff
    McKneff Posts: 38,825 Forumite
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    Send them an i come and expenditure print out, if you truly cant afford to pay more, then you can appeal.

    Failing that, put your budget up on here and we will see if we can see any saving so that you can afford to pay more
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
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    edited 17 January 2019 at 9:18PM
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    I think that with the new 'persistent debt' rules, they must increase the minimum payments or suspend the account...

    (That's if I understand the rules properly)

    Edit: I think you should post up your SOA on the DFW board for advice, support and guidance,
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • cooltt
    cooltt Posts: 852 Forumite
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    Sp3no82 wrote: »
    Hi Guys.
    I have had a Barclaycard Credit card for a while now, recently they sent me a letter regarding persistent debt and suggested raising my minimum payment which I did. I then recieved another letter a few months later suggesting I raise it again but I chose not to. Today I recieved a letter informing me that my minimum payment is being increased by 50% and if I fail to make the payment I will incurr charges!!
    Is this legal it does not seem fair, by all means I want to pay this card off but in an affordable way. Their increase will literally break the bank.
    Help advice needed :mad:


    Yeah people only talk about percentages when they want an tiny increase to sound dramatic.


    Give us the exact payment so we can pass judgement accordingly.
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Sp3no82 wrote: »
    Their increase will literally break the bank.
    Perhaps you could share the name of the bank you're going to break, so we can withdraw our money before everyone else gets to hear about it.... ;)
  • Anthorn
    Anthorn Posts: 4,362 Forumite
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    Sp3no82 wrote: »
    Hi Guys.
    I have had a Barclaycard Credit card for a while now, recently they sent me a letter regarding persistent debt and suggested raising my minimum payment which I did. I then recieved another letter a few months later suggesting I raise it again but I chose not to. Today I recieved a letter informing me that my minimum payment is being increased by 50% and if I fail to make the payment I will incurr charges!!
    Is this legal it does not seem fair, by all means I want to pay this card off but in an affordable way. Their increase will literally break the bank.
    Help advice needed :mad:

    I don't think their action in relation to Persistent Debt is legal: In a case where there is more interest added than is paid off the debt over 18 months Persistent Debt is identified where the customer is advised that they should pay an increased payment. If after a further 18 months the customer is still in persistent debt the lender must help the customer to reduce the debt: In cases where the customer cannot afford the increased payments, helping the customer could involve reducing fees, charges and interest.

    https://www.moneysavingexpert.com/news/2018/02/new-credit-card-rules-to-help-those-in-persistent-debt/
  • eskbanker
    eskbanker Posts: 31,066 Forumite
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    Anthorn wrote: »
    I don't think their action in relation to Persistent Debt is legal: In a case where there is more interest added than is paid off the debt over 18 months Persistent Debt is identified where the customer is advised that they should pay an increased payment. If after a further 18 months the customer is still in persistent debt the lender must help the customer to reduce the debt: In cases where the customer cannot afford the increased payments, helping the customer could involve reducing fees, charges and interest.

    https://www.moneysavingexpert.com/news/2018/02/new-credit-card-rules-to-help-those-in-persistent-debt/
    Seems to me that Barclaycard are following that process, in that once a customer has been identified as being in persistent debt over 18 months it's legitimate for them to seek higher repayments for a further 18 months, and it's only after that second 18 month period that they need to look at other more sympathetic measures. Since these changes only came in within the last 18 months, OP can't have reached the end of that second 18 month period yet.

    In terms of legality, the definitive regulations on persistent debt are set out in the FCA handbook at https://www.handbook.fca.org.uk/handbook/CONC/6/7.html (6.7.27 onwards), so that's what financial institutions will be measured against, rather than MSE paraphrasing!
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