Consumer complaint received 2025-04-16 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Fees or interest — Problem with fees
Company: BARCLAYS BANK DELAWARE
State: CA

Complaint narrative:
Barclaycard has violated multiple consumer protection laws. I am a victim of the XXXX XXXX wildfires that devastated my community, and as part of the relief efforts, I enrolled in the disaster relief program on XX/XX/year>, during a phone call with a Barclay representative named XXXX ( ID # XXXX ). During this call, XXXX explicitly confirmed that I would not owe any payments until XX/XX/year>, due to my enrollment in the disaster relief program. He assured me that no late fees would be applied. This was the basis for non payments during the months of XXXX and XX/XX/year>, as advised by XXXX, and I acted in good faith based on this agreement. 
However, it has now come to my attention that Barclaycard has violated the terms of this agreement in the following ways : 1. Unlawful Late Fees Charged : Contrary to the terms of the disaster relief program, I have discovered that Barclaycard has charged me late fees every month since XX/XX/year>, which was the first month covered by the disaster relief program. These charges were made despite the clear promise by your representative that I would not be required to make payments until XX/XX/year>. 
To further exacerbate the situation, I was charged {$29.00} on XX/XX/year>, and {$40.00} on XX/XX/year>. These escalating fees are not only outrageous but potentially unlawful. I am not aware of any legal basis or justification for such increasing fees, especially under the terms of a disaster relief program that explicitly waives late fees during this period. I demand immediate correction of these charges and full reimbursement for all late fees assessed in violation of the agreement. 
It is critical to note that all of my phone calls with your representatives are recorded, and I have provided the ID number of the representative who assured me that my next payment would not be due until XXXX. This evidence is irrefutable, and I will not hesitate to use it to pursue legal action if Barclaycard fails to make the necessary adjustments.

2. Reduction in Credit Limit Without Proper Notice : In addition to the improper late fees, I have also discovered that Barclaycard reduced my credit limit by 50 %, from $ XXXX {$4000.00}, without any prior notice or valid justification. This drastic reduction has caused further financial harm and distress during an already difficult time. The failure to notify me of this reduction or provide a legitimate reason for such an action constitutes a violation of both the terms of the disaster relief program and California law. 
XXXX. Incident 1 Card Declined and Miscommunication : On XX/XX/year>, I attempted to use my credit card at a retail location, only to have the transaction declined multiple times. Upon contacting your customer service, I spoke with representative XXXX ( ID # XXXX ), who initially informed me that my account was past due, directly contradicting the information I had previously received from XXXX. After clarification from me, XXXX verified that I was indeed enrolled in the disaster relief program and then lifted the block on my card. This miscommunication and delay in restoring my account access caused significant inconvenience and frustration. 
4. Incident 2 Repeated Blockage and False Credit Reporting : A few days later, I encountered the same issue at a different retail location, where my card was again declined. After spending several hours on the phone with various customer service representatives, I was told contradictory information. Some representatives insisted that my account was late, while others claimed that my account had been sent to collections. Despite being enrolled in the disaster relief program, I was told that my card could not be used unless a payment was made. To make matters worse, I was reported to the credit bureaus as being late on paymentsa direct violation of the relief program terms.

Legal Violations : Barclaycards actions have violated several provisions of California law, including but not limited to the following : Failure to Honor the Disaster Relief Program : By charging late fees, reducing my credit limit, and blocking my card despite my enrollment in the disaster relief program, Barclaycard has willfully breached the terms of this program. This breach constitutes a violation of California Civil Code Section 1747 et seq., which governs consumer credit protections, and specifically, Section 1747.30, which mandates that any adjustment to the terms of a credit agreement, including interest rates, fees, or credit limits, must be clearly disclosed to the consumer. Barclaycards actions are in direct contravention of these provisions. 
False Reporting to Credit Bureaus : Reporting me as being late on payments while I was enrolled in the disaster relief program is a violation of California Civil Code Section 1785.25 ( a ), which prohibits inaccurate reporting of consumer information to credit bureaus. This false reporting has damaged my credit rating and caused significant harm to my financial wellbeing.

Unlawful Late Fees and Charges : The imposition of late fees on my account after my enrollment in the disaster relief program is a violation of the California Consumer Credit Reporting Agencies Act ( CCRAA ), as codified in California Civil Code Section 1785.25 ( a ), which prohibits reporting inaccurate information to credit bureaus, and Section 1785.13, which mandates that fees and charges must align with the terms agreed upon by the consumer. Charging me late fees during the period covered by the disaster relief program constitutes a deceptive business practice under California Civil Code Section 1770, which prohibits unfair or deceptive acts in the conduct of trade or commerce. 
Escalating Late Fees : The continued increase in late fees from {$29.00} on XX/XX/XXXX to {$40.00} on XXXX XXXX my enrollment in a disaster relief programappears to be both excessive and unlawful. Under California Civil Code Section 1719, late fees must be reasonable and clearly disclosed in the terms of the credit agreement. The unreasonable escalation of fees in this context is likely a violation of these provisions and may constitute an unfair business practice under California Business and Professions Code Section 17200, which prohibits unfair, unlawful, or fraudulent business practices. 
Reduction of Credit Limit Without Notification or Justification : Reducing my credit limit without proper notice or a valid explanation violates California Civil Code Section 1747.50, which requires that a credit card issuer must provide prior written notice if a credit limit is altered. Additionally, it constitutes an unfair business practice under California Business and Professions Code Section 17200, which prohibits unfair, unlawful, or fraudulent business practices.

Emotional Distress and Financial Harm : The actions of Barclaycard have caused significant emotional distress, embarrassment, and financial harm. The erroneous reporting of late payments, combined with the reduction in my credit limit and the repeated blockage of my card, has severely impacted my ability to manage my finances during the ongoing wildfire disaster. Under California Civil Code Section 3281, I am entitled to compensation for emotional distress and the financial harm I have suffered as a result of these violations.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief