Barclays refuses to apply payments as requested

[UncleB]

---

@Anonymous wrote:

While the fee gives you a synethtically higher APR, it doesn't give you an actually higher APR. Therefore, the CCC is well within its rights to pick where to apply your payment.

---

I agree that it's splitting hairs over the language, and most recently I've only seen fees included as part of an APR with real-estate based products, but it's an interesting argument none the less.

This is specific to a mortgage product, but here's an explanation from Zillow (emphasis mine):

http://www.zillow.com/blog/what-is-the-difference-between-interest-rate-and-apr-annual-percentage-rate-1005/

---

What is the APR (annual percentage rate)?

The APR is a calculated rate that not only includes the interest rate but also takes into account other lender fees required to finance the loan.  The idea behind APR is to help consumers understand the tradeoffs between interest rate and the fees paid at closing (such as paying higher fees to lower interest rates or increasing interest rates to cover closing costs).  The government thought this was important so they required it to be shown next to the interest rate as part of the Truth in Lending Act.

---

I'm the first to point out that in this case the language is specific to a mortgage.  I'm only including it here to show why there might be some confusion, since in some cases fees are indeed considered part of the overall APR.

I'll also add that 'back in the day' I used to frequently take out small signature loans from my community bank, and was usually charged a 'processing fee' (I didn't know better back then).  The APR the loan officer gave me was always lower than the rate in the 'black box' on the promissory note, since the 'black box' rate always included the fee as part of the overall APR.

I'll mention again that I concede that the OP might not prevail in the end, but he is not completely off in 'left field'. 

[Chris679]

I think we are overlooking the fact that the card act does not care about APR only the rate of interest. The rate of interest is the same for both so Barclays can apply the payment however they choose to.

[Anonymous]

---

@pizza1 wrote:
Ive PM'ed you a contact at Barclays. Its a direct line to "managers only"...complaints. May or may not work, but never know. Good luck!

---

Great thank you! I will call on Monday. 

[Anonymous]

---

@Chris679 wrote:
I think we are overlooking the fact that the card act does not care about APR only the rate of interest. The rate of interest is the same for both so Barclays can apply the payment however they choose to.

---

This is very helpful. Do you have a link to the wording? 

[Anonymous]

APR is the same, fee would not matter... in my opinion.

That being said I also work in customer service and the fact that you contacted them about it and they were such dicks to you is not good to see.

They may not have the system or technical capability to apply the payment differently it may be automatically done by the system.  A better solution is the escalation CSR to say "if you need a cash advance up to your full limit (when you have a zero balance) call me and I'll manually put it through".

I side with the bank that they are within their rights to do what they are doing.  I also think they had a chance to handle the customer contact in a reasonable way, and failed.

[bartoe]

Yup even credit unions do the same thing, it use to be they'd apply the payment to interest, principal and then cash advances and you HAD to make a payment first and then could make a secondary payment and we'd be happy to apply it however you directed!

[barbaralee]

I would love to know the outcome of this. If you can update, OP, it would be appreciated.