Balance Transfer Question Asda Card

clio

If you have 2 balance tansfers on your asda card, are your payments that you make going towards the BT thats about to expire?

example:
BT ends 13/12/08, balance as of novembers statement is showing as £735 outstanding on BT - my payment to clear that bt should be £735. also there is another 0% BT on the account that runs out 29th May 09, allocation of payments states lower rate paid 1st.

We will apply payments we receive to your Account in the following order:

1. Insurance Premiums
2. Interest, Charges or Fees (other than foreign currency) (in that order)
3. Balance Transfers (those with lower rates being paid first)
4. Retail Purchases (in the order they were added to your account)
5. Cash Transactions (those with lower rates being paid first)
6. Buy Now Pay Later Transactions (in the order they were added to your Account)

G1987

If you have an account with two credit plans... The payments you make will go towards the lowest interest first (i.e the 0.00%) unless you have two balances at 0.00%... in this case the payments may go towards the balance with the later expiery date. In your case the May balance;

This allows the company to apply the higher rate sooner. Your payments will then go towards the lower rate while the typical is charged on the balance that expired first.


I hope this helps and i'm really sorry if the wording of that answer is poor:rotfl: The company i used to work for had the same kind of payment hierarchy.

Graham

clio

Graham
I was under the impression that if 2 - 0% bt,s are active it's the one that was on account 1st. Ive rang asda and sent them 3 messages. got 4 different replys back. why oh why can CS people not give correct info and expect us [customers] to be magicians and pull the info out of a hat.

G1987

Hi again, that is the case with some companies.. to be honest i do not have an asda card but the company i used to work for charged in the way i mentioned in the previous post.

I think it is really down to how devious companies can be.. Trapping an interest chargeable payment above a 0.00% is extremely profitable (hence why you see many introductory interest free balance transfers with shorter purchase offers attached).. so some companies will put payments to the furthest balance.

You will find problems getting the official answer with what is called the "payment hierarchy"... it really depends on the quality of the staff; I've worked with advisors who didnt understand the system.. which obviously makes it a lot harder to explain:rotfl:

I would give them a ring and politely ask to speak to a manager or coach... they will have the right info at least!

hope this helps
Graham

clio

Right i've just got off the phone, here's the SP.
if you have more than one BT and you make a payment, not all of the payment go's to the bt thats is expiring.
so i paid in £735.49 to clear my BT, well not all of the payment was used to clear the BT, some of my payment
went of the other BT.

Now i asked them to show me in the t&c's where this is mentioned. he said it wasn't in the t&c's. so i paid in a
total of £771 to clear a BT off £735.49. now i don't mind the over payment as it will come of the balance anyways but if i had not of asked when making the payment was my BT[the expiring 1] now clear, i would not have known about this. But now that i do they won't have me flapping around like a blue ar5ed fly again.

G1987

ha ha, sounds very confusing! so just to check...are they saying that the closest expiring bt is now paid off??

If the old balance has paid been paid off- just keep a note roughly of the time of your call, the ammount you paid and the name of the advisor you spoke to. This is just in case they charge you any interest... you can then relay what you were told today and it can be traced if neccessary!

Also..I like the fact that they said "its not in the terms and conditions"- good one guys!
G

clio

Graham
yep got that info in my notepad. just to clear up... any payment made a small percentage go's off your other BT
and the rest to the 1st one to expire. I'm wondering if it's related to the BT fee and they claw that back before anything else. If it is related to BT Fee surely it would be easy enough to say so, instead of all this cloak & dagger stuff.