Ever had a Barclaycard? You could be in line for a cash refund

Some Barclaycard customers may be in line for a refund after the provider admitted it incorrectly overcharged some cardholders. Here are the details.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Woman looking sideways at credit card

Source: Getty images

If you hold or have previously held a Barclaycard credit card, you could be in line for a cash payment. That’s because the card provider is refunding some of its customers who were overcharged as a result of an ‘operational issue’.

Here’s what you need to know about the situation. Plus, how you can determine whether you qualify for a refund. [top_pitch]

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

Barclaycard refunds: what are the details?

Existing and former Barclaycard customers, who were previously on ‘repayment plans’, may soon receive a refund from the card provider. This is all because Barclaycard has admitted it mistakenly overcharged some of its customers in the years leading up to 2018.

Barclaycard says it has already written to some affected customers. 

How can you check whether you’re in line for a refund?

It’s important to note that you may only qualify for a refund if you were on a repayment plan before 2018. A ‘repayment plan’ is an agreement for credit card debt to be repaid over a set period.

These plans are typically reserved for customers who have fallen behind on repayments. That’s because, in theory, repayment plans make it easier for customers in financial difficulty to clear their balance.

However, if you are currently struggling with credit card debt, it’s often a good idea to explore a balance transfer credit card instead. That’s because repayment plans are rarely interest-free, so 0% balance transfer credit cards are often a far better option. 

Why is Barclaycard refunding some customers?

The reason why Barclaycard is refunding some of its customers is that the company has revealed it incorrectly calculated default fees and interest for some customers on repayment plans.

Barclaycard is contacting existing and former customers who were impacted by its error. As a result, if you believe you may qualify for a refund, it’s worth looking out for any correspondence from Barclaycard. That’s because you could be sent a cheque through the post.

It’s also possible Barclaycard will refund existing customers directly. So, if you are an existing customer, keep an eye on your online credit card account.

If you are expecting a refund, do check that Barclaycard has your correct contact details to ensure you get your payment. To do this, you can log into your online credit card account via the Barclaycard website or mobile app. [middle_pitch]

How much will you be refunded?

Barclaycard says typical refunds are in the region of £70. However, the exact amount will depend on how much you overpaid in interest charges and fees. Your refund payment will also include any compensatory interest calculated by Barclaycard.

What if you’re not happy with the situation?

If you’re unhappy with your refund or have another complaint, you can raise this with your credit card provider.

If you don’t receive a reply, or you’re dissatisfied with the response, you can use the free Financial Ombudsman Service. For more information, visit the Financial Ombudsman Service website.

Has anything similar happened before?

Barclaycard has taken steps to refund customers on a voluntary basis. As a result, there’s no guarantee the regulator will take any further action against the company.

However, in 2019 banking giants HSBC and Santander were both caught up in controversy after it the competition watchdog, the Competition and Markets Authority (CMA), revealed that both of these banks failed to send text messages to customers notifying them how they could avoid unarranged overdraft charges.

As a result, the CMA ruled that these banks should repay millions of pounds in compensation to affected customers. The outcome was a costly exercise for HSBC in particular, with the company having to refund a cool £8 million!

Are you looking for a credit card? To discover which plastic is right for you, see our detailed guide explaining the different types of credit cards.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »