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From January, Barclaycard is going to hike minimum credit card payments for customers. This could mean added pressure for thousands of customers who are already struggling to pay bills.
- The monthly bills could end up going up by 20 per cent to 100 per cent from current levels.
- The increase in payment is said mainly due to the card issuers’ new system for calculating minimum payments, which adds an extra multiplier on top of the original interest rate.
- It is being estimated that due to the new system of calculation, the monthly bills of the average customer will increase by 20 to up to 100 per cent of what is being paid now.
- Debt campaigners opined that the hike should be introduced gradually not just after the costly Christmas period.
- However, the Barclaycard has stated that the announcing the measures at Christmas time is not intentional, rather the customers had been given advance notice of three months they have missed the mail as it was delivered with a generic subject line.
- On the other hand, customers against the move have said that, though the intimation was sent in November, it depicted only the range of calculation and was not transparent as it did not mention the charges to be paid in pound or pence from January next year.
