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  • FIRST POST
    • mro
    • By mro 2nd Aug 18, 5:47 PM
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    mro
    Barclaycard changing their minimum payments
    • #1
    • 2nd Aug 18, 5:47 PM
    Barclaycard changing their minimum payments 2nd Aug 18 at 5:47 PM
    Anyone else had a letter from Barclaycard changing their minimum monthly payments from the Sep statement ?
Page 1
    • MABLE
    • By MABLE 2nd Aug 18, 6:06 PM
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    MABLE
    • #2
    • 2nd Aug 18, 6:06 PM
    • #2
    • 2nd Aug 18, 6:06 PM
    Anyone else had a letter from Barclaycard changing their minimum monthly payments from the Sep statement ?
    Originally posted by mro
    What does the letter say please?
    • Superscrooge
    • By Superscrooge 2nd Aug 18, 6:40 PM
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    Superscrooge
    • #3
    • 2nd Aug 18, 6:40 PM
    • #3
    • 2nd Aug 18, 6:40 PM
    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.
    Last edited by Superscrooge; 02-08-2018 at 6:42 PM.
    • zx81
    • By zx81 2nd Aug 18, 7:35 PM
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    zx81
    • #4
    • 2nd Aug 18, 7:35 PM
    • #4
    • 2nd Aug 18, 7:35 PM
    Anyone else had a letter from Barclaycard changing their minimum monthly payments from the Sep statement ?
    Originally posted by mro
    I'm going out on a limb here and going to say yes.
    • foxy-stoat
    • By foxy-stoat 3rd Aug 18, 8:48 AM
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    foxy-stoat
    • #5
    • 3rd Aug 18, 8:48 AM
    • #5
    • 3rd Aug 18, 8:48 AM
    All the card companies are doing this - its to help the folk who dont pay down their credit card debt.
    • MABLE
    • By MABLE 3rd Aug 18, 11:14 AM
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    MABLE
    • #6
    • 3rd Aug 18, 11:14 AM
    • #6
    • 3rd Aug 18, 11:14 AM
    Nothing received as yet. However balances on my BC cards are cleared every month. The only exception is if I am on a promotional rate and that is not normally longer than 18 months.
    • sparkey1
    • By sparkey1 3rd Aug 18, 12:36 PM
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    sparkey1
    • #7
    • 3rd Aug 18, 12:36 PM
    • #7
    • 3rd Aug 18, 12:36 PM
    All the card companies are doing this - its to help the folk who dont pay down their credit card debt.
    Originally posted by foxy-stoat
    However if you are struggling, the last thing you need is to have to pay more each month.
    • foxy-stoat
    • By foxy-stoat 3rd Aug 18, 4:16 PM
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    foxy-stoat
    • #8
    • 3rd Aug 18, 4:16 PM
    • #8
    • 3rd Aug 18, 4:16 PM
    However if you are struggling, the last thing you need is to have to pay more each month.
    Originally posted by sparkey1
    Agreed - so better to pay down the debt when its at a low rate than just the minimums for ever.
    • T-G-C
    • By T-G-C 3rd Aug 18, 6:59 PM
    • 477 Posts
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    T-G-C
    • #9
    • 3rd Aug 18, 6:59 PM
    • #9
    • 3rd Aug 18, 6:59 PM
    Vanquis starting doing this from August, however, as a remediation attempt, the cash interest rate was lowered to match the purchase rate, making both now the same borrowing cost - excluding the 3% fee.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
    • starM
    • By starM 4th Aug 18, 9:37 PM
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    starM
    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?
    • jonesMUFCforever
    • By jonesMUFCforever 4th Aug 18, 9:45 PM
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    jonesMUFCforever
    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?
    Originally posted by starM
    Yes but if you overpay by just 1 per month you won't.
    What goes around - comes around
    give lots and you will always receive lots
    • nic_c
    • By nic_c 4th Aug 18, 10:42 PM
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    nic_c
    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
    • By antrobus 4th Aug 18, 11:28 PM
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    antrobus
    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?
    Originally posted by starM
    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
    • By natlie 6th Aug 18, 8:13 AM
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    natlie
    I pay minimum but make extra payments through the month would this apply to me?
    27328 26,728 26,668 26475.20 26,696.77 DOH
    • zx81
    • By zx81 6th Aug 18, 8:32 AM
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    zx81
    No. .
    • loveandlight
    • By loveandlight 16th Aug 18, 6:25 PM
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    loveandlight
    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
    • zx81
    • By zx81 16th Aug 18, 6:35 PM
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    zx81
    I don't think that's what the FCA had in mind when they told them to do it...
    • SnowTiger
    • By SnowTiger 16th Aug 18, 7:31 PM
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    SnowTiger
    They probably want to force people into a default so they can pile on more interest and costs
    Originally posted by loveandlight
    It's, perhaps, related to new rules imposed by the FCA.

    OP didn't come back with further details.
    • scubaangel
    • By scubaangel 17th Aug 18, 2:11 PM
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    scubaangel
    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.
    Its not worth doing something unless someone, somewhere, would much rather you werent doing it.
    Sir Terry Pratchett
    Find my diary here

    http://forums.moneysavingexpert.com/showthread.php?t=5135113
    • mro
    • By mro 21st Aug 18, 12:52 AM
    • 744 Posts
    • 660 Thanks
    mro
    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.
    Originally posted by Superscrooge
    It's, perhaps, related to new rules imposed by the FCA.

    OP didn't come back with further details.
    Originally posted by SnowTiger
    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.
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