trailing interest payment? legal?

ljb038

I paid off my AMEX Nectar card in full last month only to see an interest change of 2.88 on this months bill. Having called AMEX, they inform me this is trailing interest as I didn't pay off in full the previous month. Surely this should have been included in the Total Balance, otherwise it's not a total balance?
Is this standard practice?

agsnu

It is standard practice, yes. Go read your T&C.

Oh, and it's £2.88. Get over it.

King_Of_Fools

The Total Balance was correct the day the bill was printed.

The £2.88 is interest that accrued after the bill date and before the payment was received.

nomoneytoday

Yes - it's correct. The only way to maintain 0% is two consecutive payments of the entire balance

NickX

ljb038 wrote: »

Surely this should have been included in the Total Balance, otherwise it's not a total balance?
Is this standard practice?

The Statement Balance is the Total Balance on the statement date.

Unfortunately you are not likely to pay the balance on the statement date, so additional interest accrues from the statement date until the date that you actually made the payment. This is what the £2.88 represents.

In answer to your question, YES it is standard practice.

The only way around it is to overpay your statement slightly to cover any additional interest accrued.

Cranston_2

Now you can see why banks love the credit card business, it is very very profitable.