Does a credit company need to show you how they calculated your interest?

jesswells · 14 July 2017 at 1:27PM

I just got my latest statement through from my Next store card credit account. This past month I paid off over £500 which was half of my balance, yet my interest is still higher than last month's! How is this possible? My payment was on the day that I received my last statement, exactly a month ago today, so it's not like I was paying interest on a large amount until just before this statement. I expected my interest to be about halved, not to have increased!
Any advice please because this just does not seem right to me!
Thank you

[Deleted User] · 14 July 2017 at 1:44PM

You're charged interest on a daily basis, on the amount outstanding. You were accruing interest on a large amount until you made a payment - which some time after the statement was produced.

PeacefulWaters · 14 July 2017 at 1:47PM

jesswells wrote: »

I just got my latest statement through from my Next store card credit account. This past month I paid off over £500 which was half of my balance, yet my interest is still higher than last month's! How is this possible? My payment was on the day that I received my last statement, exactly a month ago today, so it's not like I was paying interest on a large amount until just before this statement. I expected my interest to be about halved, not to have increased!
Any advice please because this just does not seem right to me!
Thank you

You paid your £500 close to the due date and there were more days in the billing period.

Enjoy less interest on the next statement.

Shakin_Steve · 14 July 2017 at 4:47PM

If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.

Sncjw · 14 July 2017 at 5:16PM

Or pay it off in full

jesswells · 15 July 2017 at 12:30AM

I paid the £500 the day of my last statement, one month ago today. My current statement was dated today so I should have been paying a lot less interest for a month exactly, the whole of the current statement period. I just want to know if I can get them to tell me exactly how they calculated the interest?

jesswells · 15 July 2017 at 12:33AM

Shakin_Steve wrote: »

If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.

Thanks for the helpful advice.

Tacosss1985 · 15 July 2017 at 12:48AM

I was under the impression that interest is calculated based on your current balance at the time the statement is generated so if you paid that money off in plenty of time before your statement is produced they would calculate interest based on the balance left. I work in a department store and that's how ours work.
Give them a call they will tell you how it's calculated, I called capital one once with a similar query and they spoke openly to me

[Deleted User] · 15 July 2017 at 6:53AM

See post 2.

Interest is calculated daily. Not on the balance remaining after a payment

Butti · 15 July 2017 at 8:22AM

Shakin_Steve wrote: »

If you don't want statements showing large amounts of interest, don't use a store card of any description, they are a rip off.

Exactly right. Credit cards can be at 0% but store cards seem to go upwards from 29% and the staff earn commission from flogging them.

The guy trying to sell me one seemed to think I would be more interested in being able to get it in pink than the APR.

PeacefulWaters · 15 July 2017 at 9:53AM

jesswells wrote: »

I paid the £500 the day of my last statement, one month ago today. My current statement was dated today so I should have been paying a lot less interest for a month exactly, the whole of the current statement period. I just want to know if I can get them to tell me exactly how they calculated the interest?

You ask them "please can you explain how you have calculated the interest" and take it from there.

Does a credit company need to show you how they calculated your interest?

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