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Beware - BT credit card time limit
pat_morris
Posts: 6 Forumite
in Credit cards
My husband and I have never ever paid interest in our lives for credit card facilities – so imagine our horror this month when we received an account from BT charged with interest of £13 -92 and advised, that next
month it would be £13.16.
In July 2008 from BT-
I was offered a balance transfer of up to 3.300 for 0% interest - but we had no debt to transfer.
I was also offered a cash transfer into our current account of up to 3.000 for 0% interest
Plus a three month purchasing period of goods at 0% interest on a new BT credit card.
I borrowed 2k for 12 months on a 0 % interest rate plus a 3% handling fee of £60.
I also bought some goods for the 3 month interest free period between August 18th/ 28th 2008.
In October after two months only - Not having received any correspondence from BT regarding our 3 month goods offer and in order NOT to pay any charges on the same goods due within that 3 months - I rang BT up to find out exactly what my goods balance was.
I was told my balance was 1075-18 and advised - that if I wanted to clear my account - it was best to send them a cheque for that amount - in order NOT to confuse my direct debit payment, which was going to be £25 each month until next July when the balance would have to be paid in full.
So I sent them a cheque by the 26th October for 1075-18 - leaving my interest free balance of 2k untouched or so I thought!.
I queried this month's interest charge of £13.92 only to be told that BT had taken my payment of 1.075.18 off my 2k balance and NOT off the goods bought with their credit card.
And that they have charged me interest on my now outstanding goods balance.
In other words my 2k interest free amount is no longer an interest free option.
So if we had not used the credit card to buy the goods we would still have the 2k facility.
When I offered to pay another cheque for the goods - I was told that that payment too would go off my 2k and NOT off my credit card purchases, so in effect they have withdrawn a facility, that I have paid £60 for.
It's misleading to say the least and I am so annoyed as I have paid them - £60 handling fee and received only four month's free credit.
The reason given by BT was that the 3 months offer was only from July 16th and despite the fact I didn't buy any goods till August 18th they were due to be paid by Oct 16th.
Owing to my cheque being paid on the 26th October it was taken off the debt with the lowest interest rate.
This - I am told is how the system works.
I shall not use my BT card for any purchase from now on as I feel strongly that I have been duped.
month it would be £13.16.
In July 2008 from BT-
I was offered a balance transfer of up to 3.300 for 0% interest - but we had no debt to transfer.
I was also offered a cash transfer into our current account of up to 3.000 for 0% interest
Plus a three month purchasing period of goods at 0% interest on a new BT credit card.
I borrowed 2k for 12 months on a 0 % interest rate plus a 3% handling fee of £60.
I also bought some goods for the 3 month interest free period between August 18th/ 28th 2008.
In October after two months only - Not having received any correspondence from BT regarding our 3 month goods offer and in order NOT to pay any charges on the same goods due within that 3 months - I rang BT up to find out exactly what my goods balance was.
I was told my balance was 1075-18 and advised - that if I wanted to clear my account - it was best to send them a cheque for that amount - in order NOT to confuse my direct debit payment, which was going to be £25 each month until next July when the balance would have to be paid in full.
So I sent them a cheque by the 26th October for 1075-18 - leaving my interest free balance of 2k untouched or so I thought!.
I queried this month's interest charge of £13.92 only to be told that BT had taken my payment of 1.075.18 off my 2k balance and NOT off the goods bought with their credit card.
And that they have charged me interest on my now outstanding goods balance.
In other words my 2k interest free amount is no longer an interest free option.
So if we had not used the credit card to buy the goods we would still have the 2k facility.
When I offered to pay another cheque for the goods - I was told that that payment too would go off my 2k and NOT off my credit card purchases, so in effect they have withdrawn a facility, that I have paid £60 for.
It's misleading to say the least and I am so annoyed as I have paid them - £60 handling fee and received only four month's free credit.
The reason given by BT was that the 3 months offer was only from July 16th and despite the fact I didn't buy any goods till August 18th they were due to be paid by Oct 16th.
Owing to my cheque being paid on the 26th October it was taken off the debt with the lowest interest rate.
This - I am told is how the system works.
I shall not use my BT card for any purchase from now on as I feel strongly that I have been duped.
0
Comments
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You have not been duped. The problem appears to be you did not understand the offers. Martin has always said that if you do a balance transfer you should never spend on the card. You should have done one or the other but not both.0
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Your T&C's changed in September, but the following is true for any payments made since then (ie your October payment, had it been made earlier in the month)...
During the first 3 months (which effectively means until your 3rd statement date) all repayments will go to reducing your purchases 0% balance because that is the offer which expires first. After this date, your purchases are locked in at circa 15.9% APR.
See your T&C's, where condition 2f explains the above.
Unless you're very good with T&C's, ie are prepared to study them in depth, then it's best to do as MABLE says...don't mix 'n' match BT's and purchases on the same card.
Look on the bright side...no-one gets bitten twice by this.0 -
Thank you for your reply - I must admit I was puzzled as to how it worked as they asked for a min payment of £25 every month. As they did not send me a statement - I rang them to ask exactly what I owed. The small print on BT's contract pages was still quite confusing but I definitely will not make that mistake again. What is a T&C? I shall pay it off anyway - as I hate paying interest.0
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T&C is terms and conditionspat_morris wrote: »Thank you for your reply - I must admit I was puzzled as to how it worked as they asked for a min payment of £25 every month. As they did not send me a statement - I rang them to ask exactly what I owed. The small print on BT's contract pages was still quite confusing but I definitely will not make that mistake again. What is a T&C? I shall pay it off anyway - as I hate paying interest.
KLM0
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