Minimum Due Change | American Express UK

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UNDERSTANDING CHANGES TO YOUR MINIMUM MONTHLY PAYMENT

If you recently received a letter from us, notifying you of a change to your minimum monthly payment (effective on the date of your first statement after 1 October 2019), this article will help you understand:

why we are changing your minimum monthly payment
how this will affect you
how we are here to support you through this change.

Note: This Help Page is relevant to you if you recently received a notification letter from us that your minimum monthly payment is changing.

If you are unsure whether you are affected by this change, you can confirm by checking which minimum payment type your Account is currently subject to. You can find this information on your monthly statement (online PDF or paper statement). Refer to the Summary Box page at the end of the statement and locate the Minimum Repayment section.

This article is ONLY applicable to you if it says :

(1) £5 (or the total amount you owe if less) or

(2) 2.5% of the total amount owing

Understanding changes to your minimum monthly payment

Why are you changing my minimum monthly payment?

We are changing your minimum payments to help you pay off your outstanding balance sooner. This will mean that overtime you are likely to pay less in interest charges.

Visit our calculator tab to see how much interest you could save.

What is my current minimum monthly payment type and what is it changing to?

YOUR CURRENT MINIMUM PAYMENT

(the highest of the following)

£5 or the total amount owing if less,

OR

2.5% of the total balance owing

YOUR NEW MINIMUMPAYMENT

(the highest of the following)

£25 or the total amount owing if less,

OR

Repayment protection insurance plus
Default fees plus Interest charges plus
1/12th of any annual Cardmembership fee or the full monthly fee (if applicable to the product you hold) plus
2% of the remaining balance (total balance less the above fees and charges)

When will my minimum monthly payment change?

The changes will become effective on the date of your first statement issued after 1 October 2019.

How can I find out what my new minimum payment will be?

Visit our calculator tab for a quick assessment. This will help you compare your current minimum monthly payment amount against the new minimum monthly payment required.

Your first statement issued after 1 October 2019 will also provide you with your new minimum monthly payment amount.

How will my Direct Debit be affected?

It is set up to pay the minimum due only - As your Direct Debit is already set-up to cover the minimum due no changes are required to your Direct Debit. However as the amount may increase you may need to check that you have sufficient funds to cover the payment.
It is set up to pay a fixed amount which is above the new minimum due amount - You don’t need to make any changes as you are already paying more than the required amount.
It is set up to pay a fixed amount which is below the new minimum due amount - We will request monthly payments to cover the new minimum due amount. You may need to increase your fixed payment amount, which can be done within your Online Account.
t It is set up to pay the full balance - This change is not likely to impact you if you continue to pay your balance in full.

What if I can’t afford to make my increased minimum monthly payments?

Should you wish to discuss your individual circumstances, we encourage you to call us using the number on the back of your Card.

Additionally, there are independent debt advice organisations that can support you.

We encourage you to contact the charity suitable for you. Our website americanexpress.com/uk/content/financial-difficulties also contains useful links and contact details for sources of free, independent advice.

I don’t want my minimum payment to increase. Can I opt out of this change?

You can opt out of this change. If you do so, your Account will be closed with immediate effect and you won't be able to use it anymore.
The Card Agreement will stay in place until the balances have been paid. We will continue to request at least the current minimum payment until the
outstanding balance is paid in full.

If you wish to opt out you can do so by visiting our website americanexpress.co.uk/optout-md before 30 September 2019.

Check how your current Minimum Monthly Payment compares to your new one

Use our calculator below to see an estimation of how much your minimum monthly payment will increase by. You will also see how long it will take to pay off your balance and the total interest charges compared to your current minimum due payment amount

Simply enter the following details:

The total balance from your last statement (you can find this on your Online Account, Amex App or paper statement)
The monthly interest rate for your Account (this refers to Monthly Rate of Interest for Good and Services that you can find on your PDF statement on your Online Account or on the Amex App)

Your results:

This shows how your Minimum Monthly Payment amount will change, how this will help you pay off your balance faster and pay less interest.

Current Balance:

Monthly Interest Rate:

Current: Minimum Monthly Payment¹

New: Minimum Monthly Payment²

This change will not affect your repayments if you generally pay an amount which is greater than the new Minimum Monthly Payment.

^**

Current: Total interest you'll pay

Total amount repaid including interest

New: Total interest you'll pay

(If you pay the minimum payment every month)

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Total amount repaid including interest

Current: Time to pay off your balance in full

New: Time to pay off your balance in full

(If you pay the minimum payment every month)

Down Arrow Icon

1. Highest of the following: £5 or the total amount owed (if less) 2.5% of the total balance owed .
2. Highest of the following: £25 or the total amount owed (if less) Interest charges + 1/12th of annual card membership fee (if applicable) + other fees and charges + 2% of remaining balance.
*This only applies if you recently received a notification letter from us that your minimum monthly payment is changing.
** The above results are illustrative only and assume that there is no additional spend, no account fees, no cash withdrawal and static interest rates. The new minimum monthly payment is an initial guide and will decrease each month as your balance comes down.