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Balance transfer charged interest?
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tcwh1971
Posts: 1 Newbie
in Credit cards
Hi, I've joined in the hope I can get help with an query I have regarding a monthly interest charge that is being applied to a balance transfer fee amount.
Basically, I transferred a balance from one credit card to another and was charged a balance transfer fee, as is the normal part doing this. This is all very well, but later on receiving my first statement I notice I was being charged not just on the amount I transferred, but also on the one off balance transfer fee separately on a monthly basis, as well. So I'm currently paying off the actual balance I owe at 0.945% interest for six months and also paying 1.667% interest on the balance transfer fee on a monthly basis. Should I be paying this at all? Instead of paying just one interest rate on the actual balance I owe, I'm paying for two.
Going by my memory and knowledge, I don't remember ever being charged interest on a balance transfer fee too. Is this normal practise for credit card companies now or is this particular credit card company making a mistake? Any advice would be greatly appreciated.
Basically, I transferred a balance from one credit card to another and was charged a balance transfer fee, as is the normal part doing this. This is all very well, but later on receiving my first statement I notice I was being charged not just on the amount I transferred, but also on the one off balance transfer fee separately on a monthly basis, as well. So I'm currently paying off the actual balance I owe at 0.945% interest for six months and also paying 1.667% interest on the balance transfer fee on a monthly basis. Should I be paying this at all? Instead of paying just one interest rate on the actual balance I owe, I'm paying for two.
Going by my memory and knowledge, I don't remember ever being charged interest on a balance transfer fee too. Is this normal practise for credit card companies now or is this particular credit card company making a mistake? Any advice would be greatly appreciated.
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Comments
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What offers were the card you transferred to offering you - did they offer you a 0% or low interest deal?
Were there any add ons which you needed to complete (eg LTSB offers needed you to spend £100 on the card within 3 months to get the 0% offer!)
Come back with more detail.
It is normal to be charged on the balance transfer fee.0 -
Hi, I've joined in the hope I can get help with an query I have regarding a monthly interest charge that is being applied to a balance transfer fee amount.
Basically, I transferred a balance from one credit card to another and was charged a balance transfer fee, as is the normal part doing this. This is all very well, but later on receiving my first statement I notice I was being charged not just on the amount I transferred, but also on the one off balance transfer fee separately on a monthly basis, as well. So I'm currently paying off the actual balance I owe at 0.945% interest for six months and also paying 1.667% interest on the balance transfer fee on a monthly basis. Should I be paying this at all? Instead of paying just one interest rate on the actual balance I owe, I'm paying for two.
Going by my memory and knowledge, I don't remember ever being charged interest on a balance transfer fee too. Is this normal practise for credit card companies now or is this particular credit card company making a mistake? Any advice would be greatly appreciated.
Maybe if you said what the exact card is, you'd get a definitive answer.0 -
I'm not so sure. From memory there are only 3 or 4 mainstream card providers doing this (LTSB, RBSG, Tesco...).jonesMUFCforever wrote: »It is normal to be charged on the balance transfer fee.
I think there are far more who do not charge interest on the fee. Could be wrong though.0 -
Yes. Whilst the majority of lenders now charge balance transfer fees (a trend started by MBNA), few currently charge interest on BT fees.YorkshireBoy wrote: »I'm not so sure. From memory there are only 3 or 4 mainstream card providers doing this (LTSB, RBSG, Tesco...).I think there are far more who do not charge interest on the fee. Could be wrong though.
AFAIK, Capital One, Citi, Co-op, HBOS, HSBC and MBNA have never charged interest on BT fees.
Egg and Barclaycard have now dropped the practice.
This leaves Royal Bank of Scotland* (which includes Mint, NatWest, Tesco & Ulster Bank), LloydsTSB and the Post Office.
These treat BT fees as purchase transactions, so you will incur some interest.
*With RBS, the order of payments enables you repay the BT fee and halt the interest, even after the initial 3 months
People who don't know their rights, don't actually have those rights.0
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