Barclaycard freezes interest rates

Wednesday, 04 February 2009 12:00

Barclaycard has frozen its rates for all UK customers and had pledged help for those struggling to make their repayments.

The credit card provider said all UK customers will get prices frozen for the next four months, even if their risk-profile changes.

Around three million customers with a low-risk profile will also have their interest rate cut by between 2.5 per cent and five per cent.

Barclaycard will also contact customers who are showing potential signs of financial difficulty, before they miss payments, to offer support and advice.

Antony Jenkins, chief executive of Barclaycard, said: "We recognise that 2009 is going to be a difficult year for many people and we want to do what we can, when we can, to help Barclaycard's customers.

"Today's announcement will assist millions of our customers and we are determined to support them further, in innovative ways, over the coming months."

In some cases, customers' credit limit will be lowered, while the firm has pledged not to contact customers for up to two months for payment if they are "actively working with the free money advice sector to sort out their financial difficulties".

Barclaycard said it will work with individual customers to find ways of helping them, which may include reducing interest and fees as well as long term repayment plans.

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