Barclays hit by customer backlash

ANGRY Barclays customers today swamped the bank's switchboards after the extraordinary gaffe by its chief executive over the high cost of credit cards.

Hundreds of complaints were logged at Barclaycard's call centre and at branches of the bank following the comments made yesterday by the £1.7m-a-year boss, Matt Barrett.

He told MPs that he would never borrow on a credit card - or recommend his family do so - because the interest rates were 'too expensive'.

Today the bank was forced to rush out a statement to try to defuse the growing crisis. A Barclaycard spokesman admitted complaints began early today and were arriving in their hundreds.

Barrett's comments are already being compared to Gerald Ratner's infamous 'total crap' remarks about his own company's jewellery.

Barclaycard's statement said Barrett had been speaking 'in the context of a debate about people facing long-term problems with debt, for whom credit cards are not the answer. Most people recognise that credit cards are not the cheapest way to borrow money in the long term. They are a short-term borrowing tool offering complete flexibility and convenience'.

Barrett's comments came at a stormy session of the Commons Treasury Select Committee, which is investigating credit card charges.

He and four other banking and credit card bosses faced aggressive questions. The committee said they 'should be ashamed' for levying rates of 18% or more on people who could not afford to pay.

They were also castigated for the o% 'baits' used to lure in new borrowers that in fact had costly strings attached in the small print.

Canadian Barrett, 59, told the committee: 'There is no question that a credit card is an expensive way to do borrowing. I wouldn't recommend to anyone that they chronically borrow on a credit card.'

He also said he had advised his children not to rack up borrowing on credit cards.

Barclaycard is Britain's biggest credit card issuer, but there is intense competition. A spokesman for banking union Unifi said: 'It doesn't help when your chief executive is not championing the product.'

Customer Hannah Tucker said: 'If others like Egg can offer lower interest, why can't Barclays?'

Consumer groups said Barrett's words showed how customers are exploited. Frances Harrison, head of policy at the National Consumer Council, said: 'We urge people to follow his advice and shun expensive credit cards.'