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Barlcaycard question

My wifes barlcay card account has been closed for some time because she had gone into debt. This was due to illness and i undertook to repay the debt for her and made an arrangement with barclaycard. Ive kept up this arrangement for the last 18 months or so and the interest was frozen at 1%. Today we had a letter saying that whilst the payments remain the same the interest charged would increase to 6.9% which in effect increases the time it will take to repay the debt but still having no card. When i phoned and explained the affect this would have they said well youve handled the account really well so now its back to normal. In effect for me doing them a favour and repaying the debt rather than simply taking out an admin order they will charge me more and make me pay more for longer. Am i misreading this or does it seem stupid to reward me repaying in this way? Maybe im just in a bad mood! The woman at customer services just kept repeating "You can what you like its no going to change!" like a recorded message. Talk about bad manners. Should i write to them and try and get them to put the interest back to 1%? or just give up?

Reply to
linkuk
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Did you get this in writing ? Was there a time limit to the frozen 1% rate ?

How much is the balance ? How much is the extra interest ? Is it worth the effort ? What will happen if you simply stop payment ?

Reply to
Miss L. Toe

The agreement was verbal over the phone and i said i would be happy to review the situation every 6 months but i dont recall any mention of increases in interest rates. The balance is a bit over 500. Until i see the next statement not sure of the extra interest but probably not a great deal on a monthly basis. Not sure if its worth effort just annoyed they walk over me despite the fact that ive made it my business to pay this off. If i stop payment i would guess that they would then start slapping the usual penalties on which would result in a dramatic increase in the total debt. They seem to be oblivious of the fact that if i took it to court and asked for an administration order the court would freeze all interest and replace my current payments (that i had suggested) with a much lower one (because of our current circumstances) which would mean a loss to them. In retrospect i should have taken my wifes debts to court in the first place but i wanted to clear them in good faith.

Reply to
linkuk

Consider it reviewed - and the Interest rate has now been increased as part of that review.

Reply to
Colin Forrester

Are you sure Barclaycard weren't charging you 1% *per month*?

If they were, your new rate of 6.9 % (= 0.561% per month) is actually better!

Regards

Simon Clark Business Telecoms

Reply to
simonclark123

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