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Barclaycard's underhand tactics
Andrew Ellson, Personal Finance Editor
Bankers would struggle to work their way lower in most people's estimation at the moment, but managers at Barclaycard are giving it a jolly good go.
Last week our Troubleshooter helped a woman who was unfairly charged a late-payment fee and interest on her credit card after Barclaycard unexpectedly moved forward the payment due date by nine days. The woman in question, like many Times Money readers, is diligent with her finances and usually pays her bill in full each month. She was understandably indignant and felt that she had been tricked into making a late payment. Sadly, after publishing her story, we discovered that she was not alone. In the past week we have been inundated with e-mails and letters from readers who have fallen victim to the very same tactic by Barclaycard.
Not since British Gas introduced its woefully inadequate boiler breakdown cover or TalkTalk underestimated demand for its “free” broadband have we received so many letters on a single subject. The sheer scale of the correspondence suggests an orchestrated attempt by Barclaycard to confuse borrowers into missing their payment dates so that it can levy extra interest and charges. Worse still, to judge by the letters we have received, the lender appears to be targeting borrowers who usually clear their balances in full each month.
Barclaycard's inadequate explanation is that it gives all customers a minimum of 20 days to pay from the date that a bill is generated, but that this payment window can be as many as 32 days. It says that the date can change because of weekends, Bank Holidays and, crucially, “operational expediency” - a vague notion that can only mean “whenever we wish to boost profits”. This is simply not good enough.
Borrowers have a responsibility to check their bills, but it is misleading to vary payment dates so greatly and without justification. Many readers fell victim because they were on holiday when their bills arrived. We will forward the letters to Barclaycard and await its response. We call on it to reverse this policy, or at least make payment dates clearer on bills. Meanwhile, customers should consider whether they might receive a fairer deal elsewhere.
Andrew Ellson, Personal Finance Editor
Bankers would struggle to work their way lower in most people's estimation at the moment, but managers at Barclaycard are giving it a jolly good go.
Last week our Troubleshooter helped a woman who was unfairly charged a late-payment fee and interest on her credit card after Barclaycard unexpectedly moved forward the payment due date by nine days. The woman in question, like many Times Money readers, is diligent with her finances and usually pays her bill in full each month. She was understandably indignant and felt that she had been tricked into making a late payment. Sadly, after publishing her story, we discovered that she was not alone. In the past week we have been inundated with e-mails and letters from readers who have fallen victim to the very same tactic by Barclaycard.
Not since British Gas introduced its woefully inadequate boiler breakdown cover or TalkTalk underestimated demand for its “free” broadband have we received so many letters on a single subject. The sheer scale of the correspondence suggests an orchestrated attempt by Barclaycard to confuse borrowers into missing their payment dates so that it can levy extra interest and charges. Worse still, to judge by the letters we have received, the lender appears to be targeting borrowers who usually clear their balances in full each month.
Barclaycard's inadequate explanation is that it gives all customers a minimum of 20 days to pay from the date that a bill is generated, but that this payment window can be as many as 32 days. It says that the date can change because of weekends, Bank Holidays and, crucially, “operational expediency” - a vague notion that can only mean “whenever we wish to boost profits”. This is simply not good enough.
Borrowers have a responsibility to check their bills, but it is misleading to vary payment dates so greatly and without justification. Many readers fell victim because they were on holiday when their bills arrived. We will forward the letters to Barclaycard and await its response. We call on it to reverse this policy, or at least make payment dates clearer on bills. Meanwhile, customers should consider whether they might receive a fairer deal elsewhere.
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