Daily Banking Industry News
Sunday 11th of October 2009

Banking Sectors:

By company:

By organisation:

Also see:

February 5, 2009

Barclaycard reduces rates by up to 5%

by Gill Montia

Story link: Barclaycard reduces rates by up to 5%

Barclaycard says it will be cutting rates for some of its customers in the months ahead.

The credit card provider will reduce the cost of borrowing by between 2.5% and 5% for over 25% of cardholders, with the first reductions due to be announced before the end of January.

Meanwhile, new customers signing up for Barclaycard Platinum and Barclaycard OnePulse can already benefit from reductions of between 2.5% and 12.4%.

According to the lender, cuts are being made possible by cost savings and cheaper money market rates.

These are being passed on to customers, mindful of the fact that reducing the cost of borrowing could stem a rise in payment defaults.

Last year, the cost of borrowing on credit cards rose, despite cuts in the Bank of England’s base rate.

In November, financial analyst Defaqto reported that the average annual percentage rate stood at an uncomfortable 17.6%.

Ministers began to apply pressure to card providers and from January, Barclaycard and others agreed to give customers struggling with repayments a 60 day period of grace.

Providers have also agreed not to raise rates if customers can show they are working to solve repayments problems with a debt advice group.

Around three million customers should benefit from Barclaycard’s rate cuts, however around nine million cardholders are being left out in the cold because they are not regarded as low risk.

 

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL


Related stories to: Barclaycard reduces rates by up to 5%

Barclaycard issues 1.7m new credit cards  ...

Bank of Canada reduces rates  ...

Barclaycard tightens credit limits  ...

Barclaycard apologises to widow for 317-strong letter error  ...

Barclaycard supports flood victims and football fans  ...

No Comments »

No comments yet.

Leave a comment


Previous: « Deutsche Bank makes raft of appointments
Next: Britons rely on credit for everyday purchases »

Visited 613 times, 1 so far today


Savings & Investment News


Borrowing & Lending News