Barclaycard scraps three free perks

Barclaycard scraps three free perks

Britain's most widely held credit card is ditching several valuable benefits enjoyed by cardholders, it emerged this week.

Barclaycard is axing its free extended warranty cover on household items such as televisions and fridges.

It is also abandoning free travel accident insurance, which currently covers people who book air, sea or rail tickets with their plastic, and scrapping its "price promise," where the company will refund the difference if someone buys something with their card, then finds it cheaper in another shop.

Barclaycard - which has 9m UK customers and uses Friends star Jennifer Aniston in its ads - has partly blamed new regulations which come in to force next month for the changes. It says it is bringing in several other "decent" services to make up for the loss of the perks, including greater protection against fraud.

The three benefits are being withdrawn on January 1, though for existing cardholders there will be a short delay "to make sure they receive the level of support they are used to over the Christmas period".

Items bought on or before January 31 can be registered for free extended warranty, but this must be done by April 1. The same applies to the price promise. January 31 is also the cut-off date for new travel claims.

Barclaycard says it will offer a new selection of perks, which will be available from January 1, including:

·; an identity protection service giving confidential.....continued below

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advice on identify theft plus professional support for victims to help them resolve the problem and repair their credit status.

· improved protection against fraud.

· a "purchase delivery promise," where goods bought with a Barclaycard are covered against loss or damage from despatch to your door.

· Emergency card replacement and, if necessary, an emergency cash advance of up to £1,000 a week.

· A travel service giving customers an extra 5% discount on the tour operator price - including any late deals.

· a home emergency helpline.

The price promise and extended warranty cover will still be available to those who want them - at a price. A "low-cost package" will be offered from February.

So what do the experts think? Andrew Hagger at financial data magazine and website Moneyfacts says Barclaycard's offering has been "watered down".

Stuart Glendinning at price comparison website moneysupermarket.com says it is disappointing, but adds: "Overall they have markedly improved their proposition for new customers over the course of this year."

With other big names such as Lloyds TSB and Halifax recently ditching free insurance perks for similar reasons, Mr Glendinning says this appears to be a classic example of well-intentioned regulations actually having an adverse impact on consumer choice.

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