Absolute stoozing disasters - anyone had any?

Mutton_Geoff

I was paying minimum payments by direct debit on a card and a week before the 0% ended, I sent the balance (ie difference between next direct debit and total outstanding) by electronic banking to the card firm. I used the account number and sort code per the statement using my card number as the reference, as they suggested.

Unfortunately I left a digit out of the 16 numbers so the money went into a holding account. I got the next statement showing estimated interest due instead of a zero balance. I rang immediately but still 4 weeks later the card co have still not traced my money. It's not returned to the bank so it's sitting somewhere but the card co (Ulster) claim a backlog with lost receipts so another (unnecessary) direct debit is coming out of my account tomorrow together with interest being added to my card account whilst they sort it out. I'm reluctant to pay the outstanding balance again but annoyed it's taken them 5 weeks to get nowhere so far.

jamescredmond

Mutton_Geoff wrote: »

I was paying minimum payments by direct debit on a card and a week before the 0% ended, I sent the balance (ie difference between next direct debit and total outstanding) by electronic banking to the card firm. I used the account number and sort code per the statement using my card number as the reference, as they suggested.

Unfortunately I left a digit out of the 16 numbers so the money went into a holding account. I got the next statement showing estimated interest due instead of a zero balance. I rang immediately but still 4 weeks later the card co have still not traced my money. It's not returned to the bank so it's sitting somewhere but the card co (Ulster) claim a backlog with lost receipts so another (unnecessary) direct debit is coming out of my account tomorrow together with interest being added to my card account whilst they sort it out. I'm reluctant to pay the outstanding balance again but annoyed it's taken them 5 weeks to get nowhere so far.

this misfortune is one I choose to avoid.

I arrange to clear the outstanding balance 3-4 weeks ahead.

now I know the pro stoozer would gasp at this but I'd rather lose a month's interest than fall victim to a bank's inaction.

YorkshireBoy

jamescredmond wrote: »

I arrange to clear the outstanding balance 3-4 weeks ahead. I know the pro stoozer would gasp at this

*Shock...Horror* :eek:

...but I'd rather lose a month's interest than fall victim to a bank's inaction.

The problem is that a month's interest can represent between 7-20% of your profit, depending on the duration!!!!!

I normally send my final payment a week before, but there are many more who take it to the wire.

I do minimise the chance of a problem occurring though by sending a £1 test payment a month beforehand (to check the 'conduit' and the timing), and saving the details in my payee list ready for the 'big one'. I suspect Mutton Geoff will now be adopting this approach.

LongTermLurker

jamescredmond wrote: »

this misfortune is one I choose to avoid.

I arrange to clear the outstanding balance 3-4 weeks ahead.

now I know the pro stoozer would gasp at this but I'd rather lose a month's interest than fall victim to a bank's inaction.

I agree - I see no point in chasing the last few seconds at the risk of charges that could lose you all you'd gained - it turns considered rate manipulation into a gamble.

edit - after seeing YB's comments, I'd say I don't pay up at 3-4 weeks, but around 2 weeks is adequate to feel comfortable and not sweat too much.

sicker

I have always used a 2 week window very successfully up 'til now. I pay the minimum amount monthly by standing order and change to the full amount for the last month of the 0%. (all done on on-line-banking).

jamescredmond

sicker wrote: »

I have always used a 2 week window very successfully up 'til now. I pay the minimum amount monthly by standing order and change to the full amount for the last month of the 0%. (all done on on-line-banking).

thanks, but it's just me in a 7% comfort zone.

Walletwatch

After three years of successful stoozing between OH and self, I made my first (and hopefully last) blunder three months back... and a schoolboy error it was.

I normally pay my rent in cash or through a bank transfer from my Citi account. Since my Citi account did not have funds, decided to pay by cheque from my Abbey current account, and by mistake, drew a chq on my Abbey credit card, on which I was mid-way through my 0% deal as well. Sure enough, since the entire balance was more or less sitting in my HiSave account earning interest, there were no funds, and was socked 10 pounds (was lucky on that one, was expecting higher charges) and thereon, was charged 1 pound in interest every month for the next three months even though I made minimum payments (this was again expected as minimum payments don't go towards the interest applicable balances).

I do think that I got let off lightly considering the total amount I ended up paying was only 15 pounds for a blunder that I would have deserved to pay out much more for. I still ended up making good money on the stooze, but it could have been much dearer if the penal charges had been higher.

Have never had a cheque returned in life, nor have I ever been in unauthorised overdraft, so I am confident enough that this is a lesson well learnt - shred credit card chq books as soon as they come through the post, unless you intend using them, and if you do, use them immediately, so they don't get mixed up with account chqs. Yes, I know, you should be careful while drawing a chq, but better to nip these things in the bud when they first show up... after all, why would a stoozer ever need cr card chqs?

Cheers
WW

NickX

Walletwatch wrote: »

I do think that I got let off lightly considering the total amount I ended up paying was only 15 pounds for a blunder that I would have deserved to pay out much more for. I still ended up making good money on the stooze, but it could have been much dearer if the penal charges had been higher.

To be honest I think you were lucky that they didn't remove your promotional rate due to a breach of Terms and Conditions.

The cheques are usually useless, except on the odd occasions when they are treated at Balance Transfer rates (such as those issued by MINT).

Well Done on managing to make a profit all the same :beer:

Walletwatch

Thanks NickX

I in fact pride myself on that set of transactions with Abbey. Between OH and meself, we had a limit of 15000 with the old Abbey MBNA card. When Santander launched their own card and matched the limit no questions asked, they also offered 50 quid each for doing a balance transfer for at least 1000 pounds at 0% (no fee). A no-brainer really, and we managed to transfer 13000 between us into our Hi-Save for six months.

The next was a master-stroke (can't but help feeling cocky about it) when both OH and I called the old Abbey and asked them if MBNA had a counteroffer, and sure enough, we got a 0% offer for eight months from them (but with a 2% fee, did get too greedy and try to get it waived, but they refused) and managed to stooze around 13000 again for the period. In effect, we had over 25000 of Abbey + MBNA money stashed in an ICICI six month term deposit with gross interest (my OH is a housewife, so no tax deducted) and got 100 pounds for it from Santander for all the trouble :rotfl:

Guess 15 pounds in penal charges was a small price to pay for what we made on these transactions. And yes, you are right, I was lucky they did not withdraw the promo offer, managed that with a phone call to the call centre and using my most polite and endearing tone with the nice lady at the other end of the line.

Cheers
WW

Doomcow

after reading everything about stoozing back to front, ive realised i dont have the balls (or whatever) to do it. makes me kinda sad.

that and i said to the mrs about it and she said "i dont think you should get a credit card"...

so no blunders for me.