Barclaycard is issuing payments of up to £300 to eligible customers.
Current and former credit card customers who were with the lender in the “few years” leading up to 2018 and were overcharged while on repayment plans may be entitled to some cash back.
The payouts have been described as "mysterious" by MoneySavingExpert, reports The Mirror.
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They have also said that details for exactly who is eligible are “scant”.
The money website explained that the payouts are the result of a review by Barclaycard - which showed some customers who had fallen behind with repayments had been incorrectly charged default fees and interest.
Barclaycard told The Mirror that an “operational issue” is to blame for the error.
A spokesperson said the average payout for customers is around £70 - but MoneySavingExpert says it has heard from people who’ve received as much as £300.
The reader said: “Head’s up. If anyone ever had a Barclaycard, even if it was years ago.
“Don’t throw any post away, thinking it’s junk. Open it. We nearly binned ours.
“It had a cheque for over £300, due to operational procedures, default fees and interest charged incorrectly.”
Are you due money from Barclaycard?
Barclaycard hasn’t confirmed exactly how many people have been affected by this issue - or how many payouts it is making.
But if you are due money back, the lender should write to you “in due course” by post or email - providing it has your correct contact details.
If you’re still with Barclaycard, you can check this by logging into your online banking via the app or website then selecting “your contact details”.
You can also phone its customer service on 0800 151 0900 to see what details it has for you.
How you’ll be refunded also depends on if you’re still a Barclaycard customer, and whether you already owe it money.
If you still have a Barclaycard, and you have an account balance or zero, then you’ll likely receive a cheque in the post or an electronic payment transfer.
The same goes for if you’re no longer with Barclaycard.
But if you have a Barclaycard that still needs to be paid off, then you're more likely to receive a direct refund on the account to reduce the card balance.
A spokesperson told The Mirror: “Following a recent review, Barclaycard is returning relevant interest and fees to some customers who had taken out a repayment plan after falling behind on repayments.
“We apologise unreservedly to those customers for not providing the level of service we should have, and we are contacting them to explain the refund they will receive.
“We have taken, and continue to take, significant steps to review and improve our systems, processes and training to ensure we provide the excellent service our customers rightly expect.”
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