Being unfairly stuffed by Credit Card....advice appreciated!

dw89 · 17 May 2017 at 2:16PM

Hi All,

Like many I'm a busy person, have lots of cards, accounts etc but, in over 20years, I have never paid a penny in interest. This is mainly because I only spend on the cards what I can afford and I do it this way to free up my cash for interest and gain airmails etc.

This is all fine until one day, as happened in April, a credit card bill didn't turn up (why is anyone's guess). I realised nothing had turned up what amounted to 2.5 working days (or 4.5 if you count w/e) and phoned up immediately on 10th April (it was due on 5th). I explained the situation, pointed out that I never miss a bill, and that I will pay it now. To start off with they wouldn't even tell me the amount (helpful huh); to which I said that I can hardly pay it if I don't know what it is. Then they wanted to charge for a new statement but eventually said they would send it free of charge. I also got them to refund (on his word of course) the late payment fee and any interest for that time (on a balance just over £1k). During the call I paid the bill and, that 'should' have been that.

Next bill comes in May and, guess what, they've refunded the £12 lpf but charged me interest of £25+ on 11/4 for the 4.5 days. I phoned up, immediately, on 3/5 and complained stating that I was told it would a) be refunded and b) interest not charged. The person told me it was 'a lot of money' and they couldn't just refund it and that she had to speak to her mgr. Having done so (and lets face it, she wouldn't have gone to her if she 'couldn't' have ordered the refund) and said they couldn't and that it would have to go to a 'Complaints Team' who would either call me in 2 days or write to me in 5. I asked for a call but was told 'that's the process' and basically 'go multiply.' So, in the short term I 'fully' pay this latest bill, minus the £25+ interest which is in dispute.

On 11/5, having heard squat, I called again and, basically got told I'd just have to 'wait' and, on asking if I could speak to this 'Team' directly, was told that they 'wont speak to customers directly.' So, still in limbo. Then, on around 12/5 I now miraculously get a letter from this team (a full 9 days after the initial complaint) and, guess what, have they resolved this 'ever so complicated' issue? No, they're going to take up to 8 weeks!!! It's a complete joke.

And, today, I now know why. I've received my latest bill for payment at start of June. Instead of, reasonably, putting the disputed amount 'in dispute' they've charged me another £15+ for interest on purchases!!!

- How on earth does this work when the bill was paid in full (just minus the interest)?
- How can they charge £15+ interest on £25+ of interest
- Why is it not in dispute and 'Sandboxed'?

I'm just utterly disgusted. It's, luckily for me, all new to me and I just don't get how they can do this when it all stems from not receiving 'their' bill!!

At the moment I'm thinking of paying the entire thing off then making a complaint to FoS or something because, if I let them take their merry time to waste mine, they'll just keep adding interest without any responsibility for how it was caused in the first place and the fact 'they' told me I wouldn't be charged! This happened to me, once before, many years ago. I phoned up, they refunded me, job done. This? Well I've just not got the words.

Comments appreciated.

Dave:)

IAmWales · 17 May 2017 at 2:23PM

You need to accept some responsibility here. Why have you not got a direct debit set up?

If you don't pay off the full balance you will be charged interest on it. This information will be on your contract and your statement.

The amount is not in dispute because you are liable to pay it, you incurred the interest charge. Any refund will be a goodwill gesture.

I'd take this as a wake up call to get your affairs in order. Is there a reason why you have lots of cards and accounts?

Candyapple · 17 May 2017 at 2:24PM

Yet another thread highlighting the importance of setting up a direct debit to pay the minimum repayment each month. If you had done that, your payment would have been made on time safely and then you could have chased up the missing statement afterwards.

If you've been charged £15, I suspect this will be the trailing interest due to you not clearing the entire balance including the £25 interest, because it's based on the interest of the entire balance and not how you're thinking of interest on £25 only.

dw89 · 17 May 2017 at 2:30PM

Guys....like I said, I pay my bills. I've never missed one until it didn't turn up. I get the DD statement it's a legacy thing i.e. how I've always done it (right or wrong). I wouldn't have an issue with it 'at all' other than the fact that I have it, on tape, that I would 'not be charged'. Therefore, in my book, I shouldn't be. After the first bit of interest, I complained (and paid everything but) and was told it would be resolved in 2-5....it wasn't....so more interest. Twice they've not been straight with me, if they had the most I would have had to pay was £25 and not, now, another £15.

I'm fine with responsibility, but doesn't that go both ways? They've lied/mis-stated twice now, both on tape. I've not lied and yet I'm stuck with the interest because of their statements.

Dave;)

StopIt · 17 May 2017 at 3:06PM

You've not lied, but you wait until after your bill was due to contact them for a missing bill?

And people wonder why I go Paperless for everything. It's within my power to get my statements, and pay them the minute they're generated. No waiting for the postman, and no excuses.

You can complain to the FOS once you've exhausted the card providers complaints procedure. Although "I didn't get a bill so I didn't pay on time" may well get your complaint filed under B.

Wait for this complaint to be settled at their end as you've stated it'll take up to 8 weeks. If you're not happy then, escalate away.

PeacefulWaters · 17 May 2017 at 4:01PM

You made a massive mistake not paying the "in dispute" £25. Doing that and getting it refunded later would have stopped the situation escalating.

Now you have to wait for the bank to exhaust their complaints process. I'd expect them to rule in your favour. If they don't, there's always the FOS.

While you're dealing with all this pay the next bill fully. And then the trailing interest on the one after too. And make a note of the amounts and add them to the amount you want reimbursing.

mrmagooooooo · 17 May 2017 at 4:49PM

The odd thing about this to me is that you waited until after the bill was due to contact them? You would have (should have) received the bill well in advance of when the payment was due so why leave it so long?

I am even more surprised that something like this hasn't happened sooner if this is the way you handle your finances. You're basically putting your trust in royal mail to get you your bills on time if at all when we all know things can and do go missing on a regular basis.

In my opinion it is not the bank / card provider that are in the wrong here. You knew when your payment was due it seems and didn't pay it.

The card provider has provided you with a gesture of goodwill in refunding your late payment fee.

You should have paid your bill in full including the disputed £25 and then called them to get this back if they accepted that they would indeed refund it.

The letter you received is a standard complaint letter from all financial providers. the FCA states that all complains should be dealt with within 8 weeks. I would expect this will be resolved for you well within this time by the way of a "final decision letter" after you have received this letter it is up to you to accept it or escalate to the ombudsman.

I think you have to accept though that this is not in any way the fault of the credit card provider. Granted you didn't get the bill but you clearly knew when the payment due date was and you also knew that it should have been paid by that date and not wait until that date had passed.

You should expect a late payment marker on your credit file also so maybe worth checking those. But again, you paid late so this is accurate information.

eskbanker · 17 May 2017 at 4:52PM

It'll help to be calm and factual throughout the complaint process, even though it's sometimes tempting to resort to emotive language such as 'utterly disgusted', 'stuffed', etc.

Bear in mind that in all likelihood their automated processes will have sent the monthly statement and it will have been delayed in the post.

I'm puzzled by the dates too - you say you had a bill due to be paid by 5 April and that another has come today for payment at the start of June. This would imply that you'd have received one in mid April for payment in early May but you say that the middle one came in May (and that you phoned immediately on the 3rd), does this suggest postal unreliability as well perhaps? Do you have online access to your account?

Finally, you say they "charged me interest of £25+ on 11/4 for the 4.5 days" - given a balance of circa £1K this would be an astronomical APR so either it was interest for a different period or it was a non-interest charge, so best to ensure you're clear about exactly what charges have been applied and for what.

Fireflyaway · 17 May 2017 at 4:57PM

This is why I now don't have a credit card. Late payments/ mistakes/ disputes etc and then the extra stress and dent to your credit file trying to sort it out.
I also read somewhere that using plastic leads to people spending on average 18-20% more than if they used cash.
My advice would be get rid of the credit cards! Do you really get so many points/ air miles etc to justify having one? I'd be surprised.
Unfortunately having a credit cards comes with these risks. If you do keep it at least set up a direct debit.

MallyGirl · 17 May 2017 at 5:31PM

eskbanker wrote: »

Finally, you say they "charged me interest of £25+ on 11/4 for the 4.5 days" - given a balance of circa £1K this would be an astronomical APR so either it was interest for a different period or it was a non-interest charge, so best to ensure you're clear about exactly what charges have been applied and for what.

surely they just charged interest on all the transactions in the month as OP hadn't paid in full (dispute notwithstanding). In this case you pay interest from the date of the transaction, not just the days beyond the payment due date

bengal-stripe · 17 May 2017 at 6:44PM

dw89 wrote: »

......in April, a credit card bill didn't turn up (why is anyone's guess). I realised nothing had turned up what amounted to 2.5 working days (or 4.5 if you count w/e) and phoned up immediately on 10th April (it was due on 5th).

Your timetable seems to be somewhat off.

Every credit card has between the date of the statement and the payment-due date something like 21 if not 26 days in between. It appears your statement gets generated mid-month and is due for payment by around the 5th of the next month.

It appears the arrival of the bill was overdue by more than three weeks before you remembered the statement hadn't been received. As you are computer-literate, you are likely to have internet access to your various accounts. Surely, after the statement was overdue for a week or two, you could have saved yourself that whole saga had you logged into your account and checked.

Being unfairly stuffed by Credit Card....advice appreciated!

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