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  • FIRST POST
    • jesswells
    • By jesswells 14th Jul 17, 1:27 PM
    • 3Posts
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    jesswells
    Does a credit company need to show you how they calculated your interest?
    • #1
    • 14th Jul 17, 1:27 PM
    Does a credit company need to show you how they calculated your interest? 14th Jul 17 at 1:27 PM
    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
Page 1
    • zx81
    • By zx81 14th Jul 17, 1:44 PM
    • 12,559 Posts
    • 12,737 Thanks
    zx81
    • #2
    • 14th Jul 17, 1:44 PM
    • #2
    • 14th Jul 17, 1:44 PM
    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
    • By PeacefulWaters 14th Jul 17, 1:47 PM
    • 6,591 Posts
    • 8,096 Thanks
    PeacefulWaters
    • #3
    • 14th Jul 17, 1:47 PM
    • #3
    • 14th Jul 17, 1:47 PM
    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
    Originally posted by jesswells
    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
    • By Shakin Steve 14th Jul 17, 4:47 PM
    • 834 Posts
    • 617 Thanks
    Shakin Steve
    • #4
    • 14th Jul 17, 4:47 PM
    • #4
    • 14th Jul 17, 4:47 PM
    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
    • By Sncjw 14th Jul 17, 5:16 PM
    • 1,367 Posts
    • 824 Thanks
    Sncjw
    • #5
    • 14th Jul 17, 5:16 PM
    • #5
    • 14th Jul 17, 5:16 PM
    Or pay it off in full
    • jesswells
    • By jesswells 15th Jul 17, 12:30 AM
    • 3 Posts
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    jesswells
    • #6
    • 15th Jul 17, 12:30 AM
    • #6
    • 15th Jul 17, 12:30 AM
    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
    • By jesswells 15th Jul 17, 12:33 AM
    • 3 Posts
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    jesswells
    • #7
    • 15th Jul 17, 12:33 AM
    • #7
    • 15th Jul 17, 12:33 AM
    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.
    Originally posted by Shakin Steve
    Thanks for the helpful advice.
    • Tacosss1985
    • By Tacosss1985 15th Jul 17, 12:48 AM
    • 10 Posts
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    Tacosss1985
    • #8
    • 15th Jul 17, 12:48 AM
    • #8
    • 15th Jul 17, 12:48 AM
    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
    • zx81
    • By zx81 15th Jul 17, 6:53 AM
    • 12,559 Posts
    • 12,737 Thanks
    zx81
    • #9
    • 15th Jul 17, 6:53 AM
    • #9
    • 15th Jul 17, 6:53 AM
    See post 2.

    Interest is calculated daily. Not on the balance remaining after a payment
    • Butti
    • By Butti 15th Jul 17, 8:22 AM
    • 4,476 Posts
    • 11,683 Thanks
    Butti
    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.
    Originally posted by Shakin Steve
    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.
    Debt LBM (08/09) £11,641. (08/12) £22,734. (10/14) £9127 (2/15N )£7790
    Diary 'Butti's journey : A matter of loaf or death'.
    'one day I will be rich and famous…for now I'll just have to settle for being poor and incredibly sexy'. Vimrod Member of MIKE'S MOB NSD June 2/7
    • PeacefulWaters
    • By PeacefulWaters 15th Jul 17, 9:53 AM
    • 6,591 Posts
    • 8,096 Thanks
    PeacefulWaters
    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?
    Originally posted by jesswells
    You ask them "please can you explain how you have calculated the interest" and take it from there.
    • Shakin Steve
    • By Shakin Steve 15th Jul 17, 12:14 PM
    • 834 Posts
    • 617 Thanks
    Shakin Steve
    Thanks for the helpful advice.
    Originally posted by jesswells
    You're welcome. It's free too
    I came into this world with nothing and I've got most of it left.
    • chattychappy
    • By chattychappy 15th Jul 17, 12:34 PM
    • 6,196 Posts
    • 3,233 Thanks
    chattychappy
    To answer your question directly, no. They don't have to "show" you. All they have to do is charge it in line with their T+Cs. If you apply the method agreed in the T+Cs and come up with a different result, then you can challenge it. Ultimately a judge might insist they "show" how they came up with the result if it comes wrong. I suppose the ombudsman might consider if unfair if they refused to assist you in understanding their calculation.

    Also, it has been known for mistakes to be made. A few years ago I got a credit from Barclaycard. It was less than £1, but they had discovered an error in their software. When I've been charged interest in the past, I've always done a rough calculation in my head to double check.

    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?
    Originally posted by jesswells
    You mentioned in your first post that this was half of your balance. But we don't know exactly how long the full balance was outstanding for. It could be that interest for a full month on the £500 is more than interest on the full amount for a shorter time.

    If you wish someone here to have a second look, it would be best to post a transaction history - ie precise dates of transactions, payments, and statements etc...
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