Money Saving Expert founder Martin Lewis has issued a warning to Barclaycard customers ahead of a new change to minimum payments being rolled out next week which could see your interest costs double
Martin Lewis has sounded the alarm for Barclaycard customers ahead of a new change to repayments being rolled out next week, that could potentially see interest costs rise, cautioning them on Twitter: "You'll pay double." The financial guru and familiar face on ITV, who also hosts a podcast on BBC Sounds, has alerted his Money Saving Expert newsletter readers about upcoming changes at Barclaycard.
Lewis warned: "Barclaycard customer? Warning it's cutting minimum repayments from monday, which means many will pay DOUBLE INTEREST - see how to protect yourself..." Starting from Monday 22 July, Barclaycard is slashing the minimum repayment amount for numerous clients, meaning if you're only making the minimum payments on your card and take no action, you're likely to end up repaying less each month.
Barclaycard has communicated to its customers that this adjustment "gives you more flexibility with your monthly payment" and insists that the change is aimed "to ensure customers are treated as fairly as possible". The Financial Conduct Authority , which imposes stringent regulations on all credit card providers, including those concerning minimum repayments, oversees these practices, reports Birmingham Live.
In the FCA's consumer credit regulations handbook, it's written: "...a firm must set the minimum required repayment under a regulated credit agreement for a credit card or a store card at an amount equal to at least that amount which repays the interest, fees and charges that have been applied to the customer's account, plus one percentage of the amount outstanding."
A representative from Barclays commented: "We regularly review our products and from July, some Barclaycard customers will see changes to their minimum monthly payments, alongside adjustments to the APR. Customers will benefit from a reduction in their minimum monthly repayment and the vast majority have no change to APR, while some will receive a decrease."
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