Barclaycard customer? Check your account and don't bin post as it's refunding MORE people, with some getting £1,200
Do not throw out letters from Barclaycard and double-check statements as the credit card company has admitted it's refunding MORE customers after MoneySavingExpert.com first revealed a mystery redress scheme set up by the firm to correct historic overcharging. And some people have got back over £1,200.
More than a dozen MoneySavers have contacted us saying they've received payments from Barclaycard after we first published our story last week, including two people who showed us letters from the lender confirming refunds of more than £1,200. This is despite Barclaycard telling us the average refund was £70.
At the time, Barclaycard told us its redress scheme, set up after an internal review, only related to current and former credit card customers who had taken out a repayment plan in the years leading up to – and including – 2018. But it's since confirmed the scope of the redress scheme includes other borrowers too.
Barclaycard won't go into any more detail on exactly who this covers or how many people are due refunds, only saying that it is returning relevant interest, fees and charges to "some customers" where it did not always provide the service it should have. It has apologised "unreservedly" and said it is contacting customers to explain.
But one MoneySaver told us it was only on checking their credit card statement online after reading our news story that they'd noticed they'd been refunded more than £1,200. They said they hadn't received any communication from Barclaycard, and that the payment was a "complete surprise" – so it's worth checking.
We've also asked regulator the Financial Conduct Authority for more details about the refunds and the historic overcharging, but we are yet to receive a response.
If you're owed a payment you'll be sent a cheque in the post or receive a transfer
How you receive your refund is dependent on your balance and whether you are still a Barclaycard customer:
- If you hold a Barclaycard with zero balance, or no longer hold a Barclaycard, you're more likely to receive a cheque in the post or an electronic payment transfer, but the latter is the more common.
- If you hold a Barclaycard with a balance, you're more likely to receive a direct refund to the account to reduce the card balance.
Check Barclaycard has your latest contact info
Affected users will be written to in "due course" by post or email and Barclaycard stresses that you do not need to contact the lender first.
However, you should make sure the email and home address Barclaycard has on file for you are up to date in case it needs to contact you. You can ensure this by logging in to your online banking via the app or the website then selecting 'your contact details', or by phoning customer services on 0800 151 0900.
You may also want to log in to your credit card account online, as you may have received a refund without even knowing.
If you think you're affected but haven't heard from the lender or been sent a refund, you can also contact Barclaycard to check by calling the same number above. Alternatively, you can join an online chat through the Barclaycard app.
Former AND current customers may be affected
Barclaycard has told us that those who are owed money will be written to in "due course" and refunded. It said that most, but not all, borrowers have now been contacted.