For at least the next four months
Barclaycard has announced that it is freezing the prices for all its UK personal customers for at least the next four months.
Barclaycard said that, although committed to the principle of risk-based pricing, the business has decided to suspend the process to help its customers. This means that no individual will have their purchase interest rate increased, until at least June 2009, because their risk profile changes, according to Barclaycard.
Barclaycard added that it will reduce the purchase interest rate for at least three million of its UK customers by between 2.5% and 5%. Selected customers will be informed directly of the change, with half of these reductions being implemented in February 2009 and the remaining taking place throughout the year. These customers have been identified as having a low risk profile and they include both those who clear their account regularly and customers who borrow.
Barclaycard has reduced the headline annual percentage rate for its flagship Barclaycard Platinum product and Barclaycard OnePulse by 2.5% to 12.4%, for new customers. In addition, Barclaycard will continue to offer a range of cards to new customers, depending upon their individual circumstances and needs.
Antony Jenkins, CEO 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.