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  • FIRST POST
    • dw89
    • By dw89 17th May 17, 2:16 PM
    • 37Posts
    • 20Thanks
    dw89
    Being unfairly stuffed by Credit Card....advice appreciated!
    • #1
    • 17th May 17, 2:16 PM
    Being unfairly stuffed by Credit Card....advice appreciated! 17th May 17 at 2:16 PM
    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
Page 1
    • IAmWales
    • By IAmWales 17th May 17, 2:23 PM
    • 609 Posts
    • 1,268 Thanks
    IAmWales
    • #2
    • 17th May 17, 2:23 PM
    • #2
    • 17th May 17, 2:23 PM
    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
    • By Candyapple 17th May 17, 2:24 PM
    • 1,845 Posts
    • 1,460 Thanks
    Candyapple
    • #3
    • 17th May 17, 2:24 PM
    • #3
    • 17th May 17, 2:24 PM
    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.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • dw89
    • By dw89 17th May 17, 2:30 PM
    • 37 Posts
    • 20 Thanks
    dw89
    • #4
    • 17th May 17, 2:30 PM
    • #4
    • 17th May 17, 2:30 PM
    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
    • By StopIt 17th May 17, 3:06 PM
    • 341 Posts
    • 276 Thanks
    StopIt
    • #5
    • 17th May 17, 3:06 PM
    • #5
    • 17th May 17, 3:06 PM
    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
    • By PeacefulWaters 17th May 17, 4:01 PM
    • 6,249 Posts
    • 7,604 Thanks
    PeacefulWaters
    • #6
    • 17th May 17, 4:01 PM
    • #6
    • 17th May 17, 4:01 PM
    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
    • By mrmagooooooo 17th May 17, 4:49 PM
    • 91 Posts
    • 66 Thanks
    mrmagooooooo
    • #7
    • 17th May 17, 4:49 PM
    • #7
    • 17th May 17, 4:49 PM
    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
    • By eskbanker 17th May 17, 4:52 PM
    • 4,481 Posts
    • 4,223 Thanks
    eskbanker
    • #8
    • 17th May 17, 4:52 PM
    • #8
    • 17th May 17, 4:52 PM
    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
    • By Fireflyaway 17th May 17, 4:57 PM
    • 922 Posts
    • 919 Thanks
    Fireflyaway
    • #9
    • 17th May 17, 4:57 PM
    • #9
    • 17th May 17, 4:57 PM
    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
    • By MallyGirl 17th May 17, 5:31 PM
    • 2,028 Posts
    • 5,420 Thanks
    MallyGirl
    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.
    Originally posted by eskbanker
    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
    • By bengal-stripe 17th May 17, 6:44 PM
    • 3,115 Posts
    • 2,000 Thanks
    bengal-stripe
    ......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).
    Originally posted by dw89
    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.
    • fuzzything
    • By fuzzything 17th May 17, 7:05 PM
    • 37 Posts
    • 22 Thanks
    fuzzything
    It's not safe to ever assume you don't have to pay an amount you dispute. Unless you get something in writing from the bank saying you don't have to pay it, you have to play by the terms and conditions of your account.

    I understand you were told it would be removed, but once you saw it was still sitting there you need the bank to confirm whether you can ignore paying it.
    • MABLE
    • By MABLE 17th May 17, 7:24 PM
    • 3,181 Posts
    • 1,682 Thanks
    MABLE
    I pay my bill as soon as produced online. However I still have a dd in place in case I ever forget. With my card providers if the payment is then made manually in a few days of the dd being taken then the dd is cancelled for that month. If its possible then perhaps the OP may like to adopt the same thing.

    To me the OP has caused all these problems himself. Sorry my friend but you need to move with the times.
    • worried jim
    • By worried jim 17th May 17, 7:25 PM
    • 8,127 Posts
    • 12,277 Thanks
    worried jim
    Op - you've had 20 years worth of free credit. Dry your eyes.
    "Only two things are infinite-the universe and human stupidity, and I'm not so sure about the universe"
    Albert Einstein
    • Dribiddi
    • By Dribiddi 17th May 17, 8:14 PM
    • 21 Posts
    • 4 Thanks
    Dribiddi
    Utterly disgusted that a credit card company might want to make some money from you after 20 years? Get a grip
    • Ben8282
    • By Ben8282 18th May 17, 5:15 AM
    • 1,846 Posts
    • 774 Thanks
    Ben8282
    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).
    Originally posted by dw89

    This reads as if you were expecting the credit card statement to be received on 5th April and when it was not received you telephoned them on 10th April.
    But that is not what you mean is it?
    What you would appear to actually mean, in order for the rest of your post to make any sense, is that your credit card statement NEVER turned up, the payment was due on the 5th April but you waited until 10th April to call the credit card company.
    WHY?
    Why did you not call them when the statement was a few days late. Why wait until after the payment due date to call?
    Non-receipt of the statement may have been a valid excuse in the 1980's, but these days with online access and internet banking it really is not.
    Do you not have online access to this credit card account? If not, why not?
    As for the rest of it, why should they refund the interest? You breached the T&C's of the credit card account by failing to make payment by the due date. I hope the credit card company have correctly recorded a late payment marker on your credit files because honestly you deserve it.
    They have generously refunded the late payment fee.
    The interest has been charged because you failed to make full payment by the date due. Nobody has charged you 25+ interest for 4 days. You have quite correctly been charged interest on all purchases from the date of each transaction until the payment date.
    On your latest statement you have quite correctly been charged interest on purchases (as you state). You have NOT however been charged 15 interest on 25 interest. This is interest on purchases. You are now paying interest on all your purchases and you will correctly continue to do so until such time as you pay the full balance of your current statement by the due date AND have also paid the full balance of your previous statement by the due date. Your statement before last was NOT paid in full as you paid the total less the interest.
    You brought this all on yourself by failing to make timely payment of your credit card bill and are seeking to blame it all on the credit card company because the postman didn't deliver your statement. You have access to a phone. You have a computer (presumably). I have no sympathy for you whatsoever. Pay up the interest you owe and get on with your life..
    • Dobbibill
    • By Dobbibill 18th May 17, 7:59 AM
    • 2,138 Posts
    • 3,255 Thanks
    Dobbibill
    Sorry OP but you have to shoulder the responsibility for this.

    All the above statements are spot on - this your error not the error of the CC company, the postman or anyone else you can find to blame.

    This is dragging out and it's you who will pay the cost (in interest). If the first statement that went missing was due for payment in April then that would have transactions on it from mid Feb - Mid March (if the 5th April is indeed the correct payment due date not statement date) and by the time you have put this right with trailing interest it's going to be June/July (again depending if the statement or payment date is the beginning of the month).

    Moving on -
    * Accept the good will gesture of the CC company for the late payment refund
    * clear your balance in full ASAP
    * clear the following statement (which will include trailing interest) in full ASAP
    * set up a DD so the onus is on the CC company to 'take' the payment when it's due (it won't be set up immediately if you request it so don't assume it is and make sure you check to ensure a manual payment is made until then)
    * learn from it, you are human and can make mistakes, enjoy a further 20yrs of interest free credit
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


    A person who never made a mistake, never tried anything new.
    • MEM62
    • By MEM62 18th May 17, 11:02 AM
    • 1,194 Posts
    • 831 Thanks
    MEM62
    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.
    Originally posted by Fireflyaway
    Credit cards are a useful tool when managed properly. Yes, you can hire a car book flights and hotels without them but they make a lot of these things in life easier. They certainly don't add to your stress.

    Even the most basic prudence and management of accounts, much of which can be done with the convenience of online services, negates any of the risks you have highlighted.
    Last edited by MEM62; 18-05-2017 at 2:11 PM.
    • meer53
    • By meer53 18th May 17, 11:11 AM
    • 8,680 Posts
    • 12,557 Thanks
    meer53
    There is no risk in having a credit card. Use it correctly and pay whats due on time, where's the risk ?
    There are more benefits than risks.
    • DCFC79
    • By DCFC79 18th May 17, 12:02 PM
    • 29,241 Posts
    • 18,456 Thanks
    DCFC79
    Even less of a risk if you set the DD's up as soon as you get access to your internet account or call them up as soon as your acepted.
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