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Interest chared, paid last month in full
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illiterate_monkey
Posts: 60 Forumite
in Credit cards
hello all
my barclaycard had a statement balance of £496.94, minimum payment due on 12th march.
my credit card statement states that my payement of £496.94 (full balance) was cleared on 6th march ( 6 days before the due date). i never used this card for any cash advances or anything other than payments.
i got my statement today sayin they have chared me a default sum of £12 for going over the credit limit (which i cnt see on my statement) and have charged me bout £8 interest ( which is on the statemtn).
new balance is bout £557
i dono whats goin on here.
please hellp on what i can do ? apart from ringing customer services and askin them to rectify this, any thing i can ask for ? such as compensation ? as this overlimit would go on my credit file ?
my barclaycard had a statement balance of £496.94, minimum payment due on 12th march.
my credit card statement states that my payement of £496.94 (full balance) was cleared on 6th march ( 6 days before the due date). i never used this card for any cash advances or anything other than payments.
i got my statement today sayin they have chared me a default sum of £12 for going over the credit limit (which i cnt see on my statement) and have charged me bout £8 interest ( which is on the statemtn).
new balance is bout £557
i dono whats goin on here.
please hellp on what i can do ? apart from ringing customer services and askin them to rectify this, any thing i can ask for ? such as compensation ? as this overlimit would go on my credit file ?
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Comments
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You will probably have gone over the limit just before your payment cleared, so you were under the limit by the time the statement was generated, unfortunately that still generates the overlimit charge.
Overlimit charges shouldn't show on your credit file, rather late/missed payments are recorded.
Personally I'd ring Barclaycard and see if they will waive the overlimit fee (reasonable chance if it is a first offence).0 -
You will probably have gone over the limit just before your payment cleared, so you were under the limit by the time the statement was generated, unfortunately that still generates the overlimit charge.
Overlimit charges shouldn't show on your credit file, rather late/missed payments are recorded.
Personally I'd ring Barclaycard and see if they will waive the overlimit fee (reasonable chance if it is a first offence).
i never went over the limit. they put me over the limit when they put interest on top. tho balance was cleared in full0 -
illiterate_monkey wrote: »I never went over the limit. They put me over the limit when they put interest on top, though the balance was cleared in full.
It sounds as though you were charged residual interest (or trailing interest as it is sometimes known). Did you settle February's statement balance in full by the payment due date?
That said, you must have been pretty close to the limit if an £8 interest charge caused you to exceed it. It makes sense to leave a little more headroom.
If you need more spending power, I'd consider applying for another credit card.People who don't know their rights, don't actually have those rights.0 -
It sounds as though you were charged residual interest (or trailing interest as it is sometimes known). Did you settle February's statement balance in full by the payment due date?
That said, you must have been pretty close to the limit if an £8 interest charge caused you to exceed it. It makes sense to leave a little more headroom.
If you need more spending power, I'd consider applying for another credit card.
well ok, the problem is as follows
feb 09 statement had a balance of £496.94.
min payment due date was 12 march, min amt due £12
how ever i payed the balance in full and is reflecting in my march statement on 6th march. 6 days before the due date. this doesnt leaves any scope for any kind of interest to be charged on the account.
my credit limit was £1000 which was reduced to £550.
i still dont understand the point where this interest is comin from ?
now march statment is £557.34 , min payment due by 15 april, £13
now again i dont understand, how come due date is after the next billing date (12 april) (i get my barclays credit card statment on 12th of evry month)?
any help guys ?0 -
I still don't understand where this interest is coming from?
Did you settle January's statement balance in full by the payment due date in February?People who don't know their rights, don't actually have those rights.0 -
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illiterate_monkey wrote: »No, but that shouldn't make any difference to the March statement, as long as I paid my February statement in full before the due date
Yes, it makes a difference and explains the interest charge.
If you decided to pay off your February statement balance in full, having made the minimum or a partial payment the previous month (January), residual interest (or trailing interest as it's sometimes known) would accrue on a daily basis from the date of your last statement to the day the funds are credited to your account. If you were to settle the statemented balance in full for two consecutive months, you would have x days interest-free on purchases. This applies to all credit cards, not just Barclaycard.
That said, B'Card credits payments to your account on your statement date, regardless of when the payment is received. This means that, unlike most credit cards, there's no advantage in settling up early. If you make a payment before the payment due date, this lender will not reduce the interest-bearing balance until your next statement is produced.People who don't know their rights, don't actually have those rights.0 -
Did you spend anything on the card between 12th Feb and 12th March?
If you spent on the card you will be accumulating interest on the amount as soon as you spend it. You only get 56 days (or whatever) interest free when you have cleared the card 2 months before.
Next time you go to clear the balance, phone them up (08009177277 number on the statement) and ask them for the current balance as you want to clear the card. This balance will be more than the statement to take into account the interest, but from the 2nd month on you will not be paying interest on purchases.
HTH, MrsB.
Cross post - what Moggles said
.
It's only a game
~*~*~ We're only here to dream ~*~*~0 -
That said, B'Card credits payments to your account on your statement date, regardless of when the payment is received. This means that, unlike most credit cards, there's no advantage in settling up early. If you make a payment before the payment due date, this lender will not reduce the interest-bearing balance until your next statement is produced.
had this cc for a bout 2 years. i never had such a prob with them in past and they usually credit my payments in bout 24-48 hrs0 -
illiterate_monkey wrote: »no but that shudnt make any diff to march statement as long as i paid my feb statement in full before the due date ?
And therein lies the answer to why you've been charged interest. You have to clear the balance for two consecutive statement cycles otherwise you'll continue paying residual interest. As has already been stated, this applies to ALL credit cards and is nothing new.
It's simply a misunderstanding of how interest charging cycles work so it certainley isn't worth pursueing with B/card as they haven't made an error.0
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