topic Re: Barclay's changing of terms and conditions is bringing dark days. in Credit Cards

Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 18:20:02 GMT

Hey everyone, I got a letter today from Barclay's credit card out of the blue that says that they will be modifying my card account's terms and conditions. One of the changes taking place in September this year is that if my statement balance is less than $28, the minimum payment due will equal the statement balance on the monthly statement. Whereas if a particularly month's statement balance is greater than $28, the minimum payment due will equal the greater of $28 or the total 1% of the Principal Balance. These new minimum payment calculations are kind of confusing me, has anyone else gotten these notices, or something similar recently?

In addition, another change (this one also taking place in September) they mentioned was that from time to time, they would start collecting or requesting employment and income data from third parties in order for Barclay's to continue administration of my account. I wonder why they started collecting income and employment through third parties, could it be that they feel that people may not be so forthcoming about their finances, so they have to check, collect and verify this information with other parties?

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 18:27:39 GMT

@Anonymous wrote:
Hey everyone, I got a letter today from Barclay's credit card out of the blue that says that they will be modifying my card account's terms and conditions. One of the changes taking place in September this year is that if my statement balance is less than $28, the minimum payment due will equal the statement balance on the monthly statement. Whereas if a particularly month's statement balance is greater than $28, the minimum payment due will equal the greater of $28 or the total 1% of the Principal Balance. These new minimum payment calculations are kind of confusing me, has anyone else gotten these notices, or something similar recently?

In addition, another change (this one also taking place in September) they mentioned was that from time to time, they would start collecting or requesting employment and income data from third parties in order for Barclay's to continue administration of my account. I wonder why they started collecting income and employment through third parties, could it be that they feel that people may not be so forthcoming about their finances, so they have to check, collect and verify this information with other parties?

I knew this would happen eventually...too many users requesting CLIs all the time and maybe not telling the truth on their apps regarding income. That's why you're not suppose to exaggerte your numbers when applying. I'm 100% sure that once this rolls out, people are going to start seeing CLDs left and right for those who lied on their apps. Eventually, all banks might start doing that, if it was my bank, i would want o confirm the income of my customers..keeps everyone a litle safer financially.

Re: Barclay's changing of terms and conditions is bringing dark days.

CreditCuriosity — Thu, 13 Aug 2015 18:30:59 GMT

Curious who these third party services are other than one I know, but your employer has to participate.. I would just be happy to hand them my w-2 and call it the day along with a few months bank statements. This change might make some people hate barclay's

Re: Barclay's changing of terms and conditions is bringing dark days.

Callandra — Thu, 13 Aug 2015 18:47:19 GMT

Well, Barclays would not be the first to verify income and employment from a third party (doesn't Amex do this?). I don't even think my employer participates (small company of three people plus the owners) so whatever. Even if they can't verify you, that doesn't mean you're lying! But yeah, they're most likely doing this to lower default rate and by simple probability, some people will see CLDs. I agree that you should be honest with the numbers (simple rounding is okay; like $23,900 being rounded to $24k, but rounding $70k income to $100k is a huge leap).

Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 18:55:49 GMT

@Callandra wrote:
Well, Barclays would not be the first to verify income and employment from a third party (doesn't Amex do this?). I don't even think my employer participates (small company of three people plus the owners) so whatever. Even if they can't verify you, that doesn't mean you're lying! But yeah, they're most likely doing this to lower default rate and by simple probability, some people will see CLDs. I agree that you should be honest with the numbers (simple rounding is okay; like $23,900 being rounded to $24k, but rounding $70k income to $100k is a huge leap).

Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.

I think most cards have some provision that you basically pay the full balance if it below a certain amount, and this changes (usually upwards). So this change means that whereas before you might have been able to pay 1% of say $22 (whatever the previous limit was) , now you have to pay all $22. But not a big deal for most.

Re: Barclay's changing of terms and conditions is bringing dark days.

CreditCuriosity — Thu, 13 Aug 2015 18:57:12 GMT

Curious if these letter are sent out to everyone and people will start receiving them.. I would only assume that would be the case. Keep my eyes open for it to arrive.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 18:57:38 GMT

It doesn't seem like much of a change. It seems most issuers have it set up this way already.

Re: Barclay's changing of terms and conditions is bringing dark days.

CreditCuriosity — Thu, 13 Aug 2015 18:58:53 GMT

nah not a big change and most wont be impacted

Re: Barclay's changing of terms and conditions is bringing dark days.

onstar — Thu, 13 Aug 2015 19:03:30 GMT

@Callandra wrote:
Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.

Yup. It's really not that big a deal. Most banks are $25 I think. If the extra $3 of minimum payment brings a concern, then one shouldn't be using credit cards anyway, right?

Anyway, for the following statement balances, the minimum due are:

If your balance is $24, then the minimum due is $24.

If your balance is $28, then the minimum due is $28.

If your balance is $30, then the minimum due is $28.

If your balance is $350, then the minimum due is $28.

If your balance is $2800, then the minimum due is $28.

If your balance is $3000, then the minimum due is $30.

Really though, no one should be paying the minimum anyway. To me, it's sad that they only require 1%. Methinks it should be $28 or 5% minimum. My two cents.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:06:36 GMT

@onstar wrote:
@Callandra wrote:
Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.
Yup. It's really not that big a deal. Most banks are $25 I think. If the extra $3 of minimum payment brings a concern, then one shouldn't be using credit cards anyway, right?

Anyway, for the following statement balances, the minimum due are:
If your balance is $24, then the minimum due is $24.
If your balance is $28, then the minimum due is $28.
If your balance is $30, then the minimum due is $28.
If your balance is $350, then the minimum due is $28.
If your balance is $2800, then the minimum due is $28.
If your balance is $3000, then the minimum due is $30.

Really though, no one should be paying the minimum anyway. To me, it's sad that they only require 1%. Methinks it should be $28 or 5% minimum. My two cents.

It should at least be enough to cover the interest accrued.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:11:49 GMT

That's an excellent point. Most banks have it set up so that if you make nothing but minimum payments, you'll eventually pay off the card. It is weird that Barclays isn't requiring this.

Re: Barclay's changing of terms and conditions is bringing dark days.

CreditCuriosity — Thu, 13 Aug 2015 19:14:29 GMT

@Anonymous wrote:
That's an excellent point. Most banks have it set up so that if you make nothing but minimum payments, you'll eventually pay off the card. It is weird that Barclays isn't requiring this.

thought that would of been part of the card act of 2009... Obviously not..

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:34:02 GMT

@CreditCuriousity wrote:
Curious who these third party services are other than one I know, but your employer has to participate.. I would just be happy to hand them my w-2 and call it the day along with a few months bank statements. This change might make some people hate barclay's

Agree

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:36:01 GMT

@Callandra wrote:
Well, Barclays would not be the first to verify income and employment from a third party (doesn't Amex do this?). I don't even think my employer participates (small company of three people plus the owners) so whatever. Even if they can't verify you, that doesn't mean you're lying! But yeah, they're most likely doing this to lower default rate and by simple probability, some people will see CLDs. I agree that you should be honest with the numbers (simple rounding is okay; like $23,900 being rounded to $24k, but rounding $70k income to $100k is a huge leap).

Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.

It's not.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:36:51 GMT

@Anonymous wrote:
@Callandra wrote:
Well, Barclays would not be the first to verify income and employment from a third party (doesn't Amex do this?). I don't even think my employer participates (small company of three people plus the owners) so whatever. Even if they can't verify you, that doesn't mean you're lying! But yeah, they're most likely doing this to lower default rate and by simple probability, some people will see CLDs. I agree that you should be honest with the numbers (simple rounding is okay; like $23,900 being rounded to $24k, but rounding $70k income to $100k is a huge leap).

Not sure about the minimum payment due part; if it's $28 or 1% of the principal, you'd need a balance higher than $2800 to have a higher minimum payment than $28. Doesn't seem like that big of a deal to me.
I think most cards have some provision that you basically pay the full balance if it below a certain amount, and this changes (usually upwards). So this change means that whereas before you might have been able to pay 1% of say $22 (whatever the previous limit was) , now you have to pay all $22. But not a big deal for most.

I think it's $25 for my Discover.

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:48:58 GMT

@CreditCuriousity wrote:
@Anonymous wrote:
That's an excellent point. Most banks have it set up so that if you make nothing but minimum payments, you'll eventually pay off the card. It is weird that Barclays isn't requiring this.
thought that would of been part of the card act of 2009... Obviously not..

Searching, it looks like in 2003 a regulation was issued that required card issuers set a minimum payment that pays down a borrower's principal "over a reasonable period of time." From http://www.foxbusiness.com/personal-finance/2012/01/12/survey-minimum-payment-requirements-havent-changed-have/

it looks like the real rule (for Barclays and others) is some % of the principal PLUS interest and other fees, so the balance will get paid off. So the minimums are higher than in the table above.

Re: Barclay's changing of terms and conditions is bringing dark days.

CreditCuriosity — Thu, 13 Aug 2015 19:51:54 GMT

@Anonymous wrote:
@CreditCuriousity wrote:
@Anonymous wrote:
That's an excellent point. Most banks have it set up so that if you make nothing but minimum payments, you'll eventually pay off the card. It is weird that Barclays isn't requiring this.
thought that would of been part of the card act of 2009... Obviously not..
Searching, it looks like in 2003 a regulation was issued that required card issuers set a minimum payment that pays down a borrower's principal "over a reasonable period of time." From http://www.foxbusiness.com/personal-finance/2012/01/12/survey-minimum-payment-requirements-havent-changed-have/

it looks like the real rule (for Barclays and others) is some % of the principal PLUS interest and other fees, so the balance will get paid off. So the minimums are higher than in the table above.

Thanks.. Makes a bit more sense

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 19:54:59 GMT

@CreditCuriousity wrote:
@Anonymous wrote:
@CreditCuriousity wrote:
@Anonymous wrote:
That's an excellent point. Most banks have it set up so that if you make nothing but minimum payments, you'll eventually pay off the card. It is weird that Barclays isn't requiring this.
thought that would of been part of the card act of 2009... Obviously not..
Searching, it looks like in 2003 a regulation was issued that required card issuers set a minimum payment that pays down a borrower's principal "over a reasonable period of time." From http://www.foxbusiness.com/personal-finance/2012/01/12/survey-minimum-payment-requirements-havent-changed-have/

it looks like the real rule (for Barclays and others) is some % of the principal PLUS interest and other fees, so the balance will get paid off. So the minimums are higher than in the table above.
Thanks.. Makes a bit more sense

Thanks for that!!

Re: Barclay's changing of terms and conditions is bringing dark days.

Anonymous — Thu, 13 Aug 2015 20:09:30 GMT

Received same letter in today's email. The less than min payment on my letter is $27. If I hadn't seen this post I wouldn't have looked twice at the letter. No big deal

Re: Barclay's changing of terms and conditions is bringing dark days.

ddemari — Thu, 13 Aug 2015 21:21:18 GMT

Yesterday I received the same letter for my AAdvantage card. I also received a similar letter regarding fees increasing for some Synch bank cards of mine, too.

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