topic Retroactive Rate Increase? in Credit Cards

Retroactive Rate Increase?

printosaur — Fri, 29 Jan 2016 15:24:48 GMT

My Barclaycard raised the APR for December b/c of the prime rate increase.

I get it is a variable rate card.

But the prime increased on Dec. 17, and my higher APR covers the whole billing cycle, which began on Dec. 5.

So my existing balance started being charged the new, higher rate 12 days before market rates went up.

Anyone else having a problem with this?!

Re: Retroactive Rate Increase?

Anonymous — Fri, 29 Jan 2016 15:28:13 GMT

Did you do the math to confirm that you indeed were charged the higher interest rate for the entire month? I'm not sure how they would display mid-period interest changes. They might just leave the then current as the last showen rate while only charging you for half the month.

Re: Retroactive Rate Increase?

takeshi74 — Fri, 29 Jan 2016 15:32:50 GMT

@printosaur wrote:

So my existing balance started being charged the new, higher rate 12 days before market rates went up.

How did you determine this?

Re: Retroactive Rate Increase?

printosaur — Fri, 29 Jan 2016 16:38:09 GMT

How I determined, it is right there on my statement. New APR for December is 0.25 points higher than the November cycle.

The APR applies to entire December cycle. Also applies to cash-advance balances and transfer balance, if I had any.

I'm not saying they should split the cycle with 2 APRs, although they could take a weighted average. Easier to just raise the APR starting January instead of December.

At least Barclays put a notice on the statement that the APR was higher, it would be easy to miss otherwise.

Re: Retroactive Rate Increase?

Anonymous — Fri, 29 Jan 2016 16:39:56 GMT

So you did the math a confirmed that the interest charged was for the entire month at the new rate?

Re: Retroactive Rate Increase?

Creditaddict — Fri, 29 Jan 2016 16:47:51 GMT

We are talking about .25% here... Like others have stated it may show the new rate on the statement but if you calculate out the 12 days it might have switched during cycle but they won't split those 2 out on the statement to show 1-12 days at 12.00% vs. day 13-30 at 12.25% lets say.

Re: Retroactive Rate Increase?

Anonymous — Fri, 29 Jan 2016 18:46:52 GMT

This is straight from the cardmember agreement:

The APRs on your Account correspond to a daily periodic rate (“DPR”) or a monthly periodic rate (“MPR”) which is applicable only to residents of Iowa at the time of Account opening. The applicable DPRs/MPRs on your Account equal 1/365th (or 1/12th for residents of Iowa at the time of Account opening) of the sum of 1) the applicable Prime Rate,

They explicitly state that they don't do what you're suggesting they did. I doubt that the rate that they put in the little box on your statement is determinative for how they actually calculate your interest. In fact, I'd be pretty confident that they did it right. But, as others have suggested, you can just do the math and know for sure.

Re: Retroactive Rate Increase?

Anonymous — Fri, 29 Jan 2016 19:44:43 GMT

I think it's safe to say that the OP didn't do the math as suggested several times.

Re: Retroactive Rate Increase?

Mantis350 — Fri, 29 Jan 2016 19:51:58 GMT

MATH! Not even once!