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  • FIRST POST
    • davidbb
    • By davidbb 10th Nov 17, 10:14 AM
    • 6Posts
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    davidbb
    Advice please. Interest exceed minimum payment this month
    • #1
    • 10th Nov 17, 10:14 AM
    Advice please. Interest exceed minimum payment this month 10th Nov 17 at 10:14 AM
    This month I noticed that my interest charges on my credit card were actually higher than the minimum payment.
    No purchases have been made on the card in recent months, however we were on a 0% offer which has subsequently ended.

    Clearly the interest has now kicked in, that is not in question. But I believe the law on minimum payments is 1% plus any interest and/or charges. This would mean the credit card company should have adjusted accordingly to avoid this very situation. My minimum payment seems to have increased for next month which is, clearly one month late.

    If possible could someone point me in the direction of the relevant legal documents, I believe the minimum payment rules came in around 2011.

    I'd like to confirm whether the company acted illegally or whether it was legal but irresponsible.

    Thanks in advance.
Page 1
    • PeacefulWaters
    • By PeacefulWaters 10th Nov 17, 11:04 AM
    • 7,161 Posts
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    PeacefulWaters
    • #2
    • 10th Nov 17, 11:04 AM
    • #2
    • 10th Nov 17, 11:04 AM
    Did you hold the card before 2011?
    • StopIt
    • By StopIt 10th Nov 17, 11:08 AM
    • 1,371 Posts
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    StopIt
    • #3
    • 10th Nov 17, 11:08 AM
    • #3
    • 10th Nov 17, 11:08 AM
    If the minimum payment has indeed increased to the correct level now, it looks like an IT systems error.


    Contact the credit card company in question, before any of the legal stuff as they may just sort this out with a simple phone call without legal threats etc.


    I don't think when you took the card out is a factor here, as credit card companies have to update their T&Cs as the law changes, as my CC company has notified me of exactly that this week.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
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    • zx81
    • By zx81 10th Nov 17, 11:20 AM
    • 14,049 Posts
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    zx81
    • #4
    • 10th Nov 17, 11:20 AM
    • #4
    • 10th Nov 17, 11:20 AM

    I don't think when you took the card out is a factor here, as credit card companies have to update their T&Cs as the law changes, as my CC company has notified me of exactly that this week.
    Originally posted by StopIt
    That's true in most cases, but the minimum payment change only applied to accounts opened after the BIS changes came into effect.

    It was considered that it could be too much of a payment shock to older accounts.
    • StopIt
    • By StopIt 10th Nov 17, 11:39 AM
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    StopIt
    • #5
    • 10th Nov 17, 11:39 AM
    • #5
    • 10th Nov 17, 11:39 AM
    That's true in most cases, but the minimum payment change only applied to accounts opened after the BIS changes came into effect.

    It was considered that it could be too much of a payment shock to older accounts.
    Originally posted by zx81

    Duly noted!
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • davidbb
    • By davidbb 10th Nov 17, 11:48 AM
    • 6 Posts
    • 2 Thanks
    davidbb
    • #6
    • 10th Nov 17, 11:48 AM
    • #6
    • 10th Nov 17, 11:48 AM
    Opened October 2011 so after the laws. I need the specific legislation so ideally i can quote it when I contact them. I'm certainly not looking to chase them in the courts, however I am looking to nudge them in the direction of compensation. If they are as I believe in the wrong then there could be an argument for breach of contract.
    • StopIt
    • By StopIt 10th Nov 17, 11:55 AM
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    StopIt
    • #7
    • 10th Nov 17, 11:55 AM
    • #7
    • 10th Nov 17, 11:55 AM
    http://www.theukcardsassociation.org.uk/wm_documents/Good%20news%20for%20credit%20card.pdf


    If it works


    Also https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/the-costs-and-charges-of-credit-cards/


    However, as stated, if this was an IT systems error, and has been corrected automatically, I'd hold off from the "you've broken the law rah rah" and simply ask for the difference back, and maybe a token sum for the inconvenience.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • chattychappy
    • By chattychappy 11th Nov 17, 11:15 AM
    • 6,394 Posts
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    chattychappy
    • #8
    • 11th Nov 17, 11:15 AM
    • #8
    • 11th Nov 17, 11:15 AM
    If they are as I believe in the wrong then there could be an argument for breach of contract.
    Originally posted by davidbb
    What do your T+Cs say on minimum payments? If you talk about breach of contract, then you must look at the T+Cs.

    I can tell you now, that you won't be entitled to anything. You were always free to pay more than the minimum. What have you actually "lost" because of this situation?? Even if they have done something wrong, you must show that you lost money as a result.

    But the compensation culture is your friend. If you make enough noise, they might well give you something to go away.
    • Nebulous2
    • By Nebulous2 11th Nov 17, 12:45 PM
    • 1,626 Posts
    • 987 Thanks
    Nebulous2
    • #9
    • 11th Nov 17, 12:45 PM
    • #9
    • 11th Nov 17, 12:45 PM
    Does that show on the the same month's statement? eg does it say interest this month £20 Minimum payment £15 to arrive by?

    The minimum payment taken this month is for last month's statement and reflects last months interest.
    • jonesMUFCforever
    • By jonesMUFCforever 11th Nov 17, 1:07 PM
    • 24,171 Posts
    • 11,445 Thanks
    jonesMUFCforever
    Does that show on the the same month's statement? eg does it say interest this month £20 Minimum payment £15 to arrive by?

    The minimum payment taken this month is for last month's statement and reflects last months interest.
    Originally posted by Nebulous2
    Exactly right IMO and next month will show the proper amount.

    OP why have you not switched the debt to another card?
    What goes around - comes around
    give lots and you will always receive lots
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