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TLDR: If refunds take your monthly direct debit below a statement minimum payment, you still need to make up the minimum payment because of Barclaycard’s wonderful IT
I’ve been slowly winding my Barclaycard down and only had about £300 worth of spending on my latest statement. I have my account set up to collect the full balance every month by direct debit.
A bunch of refunds came through after the statement was produced and I got an email saying my direct debit would be very low as a result of this.
The direct debit ended up being less than the minimum payment on the statement. I assumed this wouldn’t be a problem. Wrong. I got a bunch of texts telling me I hadn’t paid and my account was marked as overdue. Thankfully I noticed this and threw a bunch of money at it, within 48hrs of the direct debit going out. If I hadn’t, I’d been charged the late fee and presumably the late payment would have been notified to the credit referencing agencies…
I brought this up with my contact in the executive complaints department who basically said “yup, this can happen” and promised to keep an eye on the account to refund any late fees and make sure the “late” payment doesn’t get passed onto the credit bureaus.
My experience is the same with several credit cards, not only Barclaycard (Lloyds, MBNA, HSBC and others)… refunds do not count towards minimum payments for whatever reasons, so not sure it is worth to be bashing Barclaycard on this one
Virgin Money have the same policy
Sure, but I have told Barclaycard to take whatever I need to pay them in full, every month, by direct debit. On that basis I don’t think it’s my job to be working these things out. If I was paying the card off manually then sure thing – it’s my problem.
Sure, but I have told Barclaycard to take whatever I need to pay them in full, every month, by direct debit. On that basis I don’t think it’s my job to be working these things out. If I was paying the card off manually then sure thing – it’s my problem.
Not sure of Barclaycard latest T&C on this but worth considering that some cards will Not adjust the DD for partial payments if you have it to payment that statement in full, so basically once the statement is produced, the DD amount is sent and they will not amend it for either early part payments or refunds, with the risk therefore to find yourself in credit
Yup, that’s fine too – better being in credit than late fees and a ‘late’ mark on your credit file!
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