On December 16, 2015 the Federal Reserve made a decision to increase the current Prime Rate by .25%. These changes will affect the current variable APR for Barclaycard Ring cardmembers and may also impact your minimum payment due. See our Prime Rate FAQs blog for additional information about these changes.
There have been many comments within the community that the best part of Barclaycard Ring is the 8% variable APR. Community members also said that if we change that great rate, it will turn them away. I’ve read some of these comments and it feels to me that there is some anxiety about Barclaycard increasing the interest rate at some point in the future. After all, the industry has a track record of changing interest rates. So, I can certainly understand the concern.
I want to make a few things clear about the 8% variable APR. First, there is no re-pricing APR policy in place or disclosed for this product. That means, if you pay late we are not going to increase your APR. That used to be a standard industry practice before the Credit CARD Act came into effect. But again, Barclaycard Ring has a “no re-pricing policy” for late payments. At some point down the road we can talk about whether or not we should change that. But if we do, community members will not only have input into what the revised policy is, but they will have a say in whether we implement it at all.
So, let’s talk about changing the APR for customers who have not paid late. Can Barclaycard Ring do this? The answer is yes, we do have the right to change your terms. We are required to give you 45 days advanced written notice of a change to your APR. You do not have to accept the new terms and can close your account. This is called opting-out. In the case where there is no late payment, it is important to point out that any change to your APR can only be applied to future balances. That means any balances you have at the 8% variable rate will not and cannot be increased. The Credit CARD Act protects those balances at that interest rate.
Now that’s what we CAN do, but WILL we do it? Barclaycard Ring was built to create long term relationships with customers. We created this community so that we could engage members on a deeper level by providing educational information and increase communication. The last thing we want to do is change the APR that the community likes so much. My legal team will never let me say never, but our intention is to never change the 8% variable APR. I really want to ease the cardmember anxiety that I sense out there and let you know this is our purest intention.
If you’re interested in joining the Barclaycard Ring community—where you can exchange ideas, share knowledge and make Barclaycard Ring whatever you want it to be, apply today! Now you have a voice.