Minimum payments

therevelator

I recently got a new abbey zero credit card...intending to take advantage of the 0% free period.

Anyway, I received my first statement and it stated that the minimum payment is £5, whereas my balance would incur a much higher payment according to the card's minimum payment rate.

I rang up Abbey and they said that it was because I hadn't made any purchases.

I'm confused by this because I was expecting to pay more.

NickX

therevelator wrote: »

Anyway, I received my first statement and it stated that the minimum payment is £5, whereas my balance would incur a much higher payment according to the card's minimum payment rate.

As it stands the Abbey Zero Minimum Payment is the lesser of :

(a) 2.25% of the outstanding balance

(b) Interest Charged + Fees + Insurance Premiums + £5

Because you have no interest, fees or insurance premiums, option (b) works out at £5. This is less than 2.25% of the balance so this is what you have been charged.

However, from October Abbey Zero have changed their Terms and Conditions so that you will pay the greater of these two, hence from October you will be paying 2.25% of the outstanding balance.