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  • FIRST POST
    • mro
    • By mro 2nd Aug 18, 5:47 PM
    • 694Posts
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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
    • 3,600 Posts
    • 1,884 Thanks
    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
    • 1,088 Posts
    • 783 Thanks
    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
    • 18,073 Posts
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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
    • 2,440 Posts
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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
    • 3,600 Posts
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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
    • 426 Posts
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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
    • 2,440 Posts
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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
    • 314 Posts
    • 121 Thanks
    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.
    All advice provided is intended for guidance purposes only. For specialized debt advice, please contact either National Debtline or StepChange.
    • starM
    • By starM 4th Aug 18, 9:37 PM
    • 1,380 Posts
    • 182 Thanks
    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
    • 25,080 Posts
    • 12,334 Thanks
    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
    • 1,617 Posts
    • 878 Thanks
    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
    • 15,847 Posts
    • 22,574 Thanks
    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
    • 1,120 Posts
    • 4,816 Thanks
    natlie
    I pay minimum but make extra payments through the month would this apply to me?
    First Debt Free Date: July 2014 I screwed up currently working on my second Debt Free Date
    • zx81
    • By zx81 6th Aug 18, 8:32 AM
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    • 19,289 Thanks
    zx81
    No. .
    • loveandlight
    • By loveandlight 16th Aug 18, 6:25 PM
    • 1,177 Posts
    • 932 Thanks
    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
    • 18,073 Posts
    • 19,289 Thanks
    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
    • 3,359 Posts
    • 2,321 Thanks
    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
    • 6,420 Posts
    • 10,387 Thanks
    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
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