Barclaycard changing their minimum payments

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  • nic_c
    nic_c Posts: 2,928 Forumite
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    I've had similar for other cards, as its a UK ruling, not just barclaycard. Paying £1 more than the minimum stops the minimum marker too. Not sure if this would apply to when a 0% promotion is on as its aimed at those paying interest.
  • antrobus
    antrobus Posts: 17,386 Forumite
    starM wrote: »
    What about if someone has 0% for 30 months and for this reason they are just paying the minimum payment. After 18 months they will be asked to increase the payments?

    Nope.

    The Financial Conduct Authority (FCA) defines someone as being in persistent debt if, over a period of 18 months, the amount they pay in interest, fees and charges is more than the amount of debt they repay.

    https://www.moneysavingexpert.com/news/cards/2018/02/new-credit-card-rules-to-help-those-in-persistent-debt?

    Obviously, if you have (like me) a 0% for x months deal, then your minimum payments will be reducing the amount owed, and so you will not be in 'persistent debt'.
  • natlie
    natlie Posts: 1,687 Forumite
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    I pay minimum but make extra payments through the month would this apply to me?
    DMP: £30,668 £3,364.02 DFD July 2024
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    No. .
  • loveandlight
    loveandlight Posts: 1,200 Forumite
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    Posted by sparkey1However if you are struggling, the last thing you need is to have to pay more each month.
    They probably want to force people into a default so they can pile on more interest and costs
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    I don't think that's what the FCA had in mind when they told them to do it...
  • SnowTiger
    SnowTiger Posts: 4,458 Forumite
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    loveandlight wrote: »
    They probably want to force people into a default so they can pile on more interest and costs

    It's, perhaps, related to new rules imposed by the FCA.

    OP didn't come back with further details.
  • scubaangel
    scubaangel Posts: 6,600 Forumite
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    I had an email from barclaycard stating pretty much what the others have said.
    Due to new FCA rules they have to change the way accounts are categorised, so only paying the minimums for 18 months or more and you're considered to be in persistant debt and you'll get advice on changing repayments and a new payment schedule, if after an additional period of time you're still only paying the minimums you could have the account closed to new spending/transfers and keep paying it off.


    Annoying and not too easy to understand how they phrased it but not unreasonable - we're all planning to pay off credit card debt at some point surely so small extra payments if you can find them will keep the persistant debt marker off your file and reduce the overall balances as far as I can tell.
    It’s not worth doing something unless someone, somewhere, would much rather you weren’t doing it.
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  • mro
    mro Posts: 813 Forumite
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    Superscrooge wrote: »
    If you have only been making minimum payments for 18 months and are in persistent debt, the letter might be related to the below?

    https://www.moneysavingexpert.com/news/cards/2018/02/new-credit-card-rules-to-help-those-in-persistent-debt

    From 1 September, firms will be required to take escalating steps to help once they identify someone as having been in persistent debt over 18 months:

    After someone has been in persistent debt for 18+ months... lenders must contact customers, prompt them to change their repayment and warn their card may be suspended if they follow the same repayment pattern. They must refer to any debt advice available.
    SnowTiger wrote: »
    It's, perhaps, related to new rules imposed by the FCA.

    OP didn't come back with further details.
    I don't know it's this because the card has zero balance & was paid off in early May.


    Then again the card was an old Barclay Mastercard, converted to a Visa card in May 2016 when Barclaycard scrapped their Mastercards, but still with the ridiculously low minimum payments on balances & therefore balance transfers of 0.25% plus interest, so only 0.25% on 0% balance transfers during interest free period.


    This was my best card & I would make minimum payments of 0.25% on 0% balance transfers for up to maybe 18 months.
  • mro
    mro Posts: 813 Forumite
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    foxy-stoat wrote: »
    All the card companies are doing this - its to help the folk who dont pay down their credit card debt.
    That doesn't always help because some/many are probably paying low or minimum payments because they can't afford to pay more.

    Forcing people to pay more will trigger problems elsewhere for some or many.
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