Skip to main content

Barclaycard Credit Card Refunds

A household name established from humble London beginnings, Barclay's boasted the highest number of customers for a UK bank in 2022, with over 48 million clients worldwide.

Claim Now

Who are Barclaycard?

Barclaycard was created by banking giant Barclays more than 56 years ago in 1966 to help customers make purchases with a fast, secure, and convenient solution. If you have previously had a Barclaycard and struggled with repayments, you may have an unaffordable lending claim. Barclays is a household name and the sixth oldest bank in the world.

There are 1498 Barclays branches across the UK and according to the brands claimed Trustpilot page, the current overall rating is marked as ‘bad’ with a 1.4 customer score (August 2023). As of quarter three in 2022, Barclaycard consumer UK income reached £283 million.

What are Barclaycard credit card claims?

Concerning unaffordability, a customer must be able to cover monthly repayments without difficulty. In addition, credit card holders should be able to cover the cost of their regular outgoings in the form of household bills, other debts, and necessary expenses. For those with an unaffordable credit card agreement, the need to borrow more money across multiple months is fairly common. An example of needing to borrow more can arise when a credit card payment is needed to cover basic essentials such as groceries.

Alike many other lending giants, Barclays Bank has received client complaints citing unaffordable lending with customers pursuing compensation from the firm. In January 2022, Barclays Bank UK PLC trading as Barclaycard was advised by the FCA to settle an irresponsible lending complaint by taking the following actions:

● Refund all interest, fees, and charges applied to balances over £8,000 from April 2016 to data If
the above refund doesn’t reduce the outstanding balance below £8,000,
● Barclaycard should administer balances above that on an interest free basis going forward
● Barclaycard should remove any adverse information recorded on Ms. J’s credit file about
balances over £8,000

Who has a credit card claim?

Have you had a credit card with a high credit limit? If your limit was so high that your monthly repayments were hard to manage causing more debt, you may be entitled to compensation. When choosing a credit card most people are initially given a sensible limit. Unfortunately, investigations by the Financial Ombudsman Service have shed light on lenders in the past who have continued to increase a customer’s already high credit limit. For some customers, a legitimate unaffordability claim can be explored if their credit card lender was irresponsible in allowing them to borrow so much that the debt was unaffordable.

Credit Card Refund Check List

 

“Rules imposed by the Financial Conduct Authority mean any firm offering credit has an obligation to check your financial situation to make sure you could afford the credit they were providing, before
giving it to you.”

1

You should never have been approved

Your lender should've assessed your financial situation each time they increased your credit
limit. In addition, if you had a recent spell of high cost and short term lending, recent credit
problems in the form of missed payments they should have also taken greater responsibility.
The customer felt that they were pushed into making the wrong decision without complete understanding.
2

Your limit should not have increased

Your lender should not have increased your credit card limit if it was obvious you were currently
struggling to pay your existing repayments. In addition, if you were only making minimum
payments for an extended period of time or you were missing payments, they should not have increased the limit. Transactions that show gambling should have been noted before a credit increase as well as taking out payday loans to cover costs.
3

You should be able to cover necessities

Your credit was not affordable if it resulted in you being unable to make your monthly
repayments without difficulty. You should also have been able to cover your normal household running costs, expenses and any other debts.