Is this allowed!!

white79

I have just come home to my most recent credit card statement and cannot believe what A & L have done.....
My last statement at 4071.48 balance made me think i should clear it.... so I phone up A & L and got a loan to clear the balance.
Then as the minimum payment of £76.19 was automatic I paid the remainder of £3995.29 and was happy I had cleared the balance. I had to do this on the internet as they would not take the payment on the phone.

Then when I open my statement today I owe £66.96.

Made up of

Previous Balance £4071.48
Payment £3995.29 Cr
Direct Debit Payment £76.19 Cr
Card Protection £32.42
Interest £34.54

New balance £66.96

how can they do this and how is anyone EVER suppossed to be able to pay off the credit card. I feel like storming into my local branch and going crazy.... I phoned up and they say thats just how its calculated. Call me stoopid... but shouldn't you be able to just pay off the "balance on statement" to clear your debt.

Luckily my first payment will not come out until sept so i can cover what is due... but how can they be allowed to do this... it feels like they are trying to rob me. even now if I pay them whats on the statement + the estimated interest then they will owe me money... maybe i could charge them interest on that? lol...

can i do anything about this.. any help greatly appreciated...

Christine

YorkshireBoy

white79 wrote: »

...how is anyone EVER suppossed to be able to pay off the credit card.

An interest bearing balance continues to accrue 'residual' interest...even after you *think* you've paid it. This residual interest is charged for the period between your statement date (or the date you asked for a 'settlement' figure) and the date your payment clears onto your account. It's standard practice for all cards. The reason you've incurred additional PPI costs is that you still had a balance in the next statement period.

You have two options...

Option 1. Pay two consecutive statements in full by the due date.

Option 2: Overpay the statement balance/settlement figure by an amount slightly more than the 'estimated interest' figure for the following month, and then ask them to send you the surplus by cheque when you call to close the account.

white79

Thanks... thats what i suppose i'll have to do. just a shame that i don't feel like they are showing the FULL picture.
Thanks again :T

shamac

I felt just the same-I cleared my Egg card-so i thought-then had a balance the next month of £254-which i assumed was interest-cleared that-now i have a balance of 50p-where did that come from if i cleared it in time-makes you so angry doesn't it!:mad:

latecomer

My inderstanding was that if you paid the full amount 2 months running there shouldn't be any further interest charges. Is it a payment protection charge?

DestroyingAngel_2

PPI is like residual interest - it comes back and bites you a month after you think you've paid off your balance. The PPI charge would be on your final balance, and as it's calculated in arrears it would only show up on the next statement.

If the OP pays off the 2nd statement of £66.96 in full and on time, then the statement after that would show a NIL balance.