Paid off CC in full, then interest added afterwards?

ljn100

Hi Money Saving Experts

First post, which I hope is on the right place and not a repeat (couldn't spot anything similar) but was after some opinions from you all.

I cleared my Halifax CC balance last month in full. I've had a couple of hundred pounds on there for a couple of months, made a £50 payment as usual and then decided on 8 Dec to clear the rest too and move it onto my new Nationwide card (with a much better deal at 0% etc etc).

I then cut the card up and was going to write to Halifax to close my account officially, but from looking at my online banking today they have added an interest charge of £1.95 to my "new" statement!!

Can they do this? I thought that paying off the balance meant just that! I can't recall this ever happening before when i've paid off cleared the balance.

If I pay this off this month, they will say I owe them 3p next month or something too?!

Very very irritating. What do others think?

newmumincov

This has happened to me too, you have my sympathies. Pay it off asap, then call and check that there will be no further charges. Well that's what I did anyway.

Edited to add: interest is charged in arrears, and accumulates every day, so it depends how late in the month you pay it off as to whether any is due

CLAPTON

all credit cards work that way.

you need to clear your total balance in two consecutive months before interest stops.

Moggles_2

If you decide to pay off your statement balance in full, having made the minimum or a partial payment the previous month, residual interest (or trailing interest as it's sometimes known) accrues on a daily basis from the date of your last statement to the day the funds are credited to your account. If you were to settle the statemented balance in full for two consecutive months, you would have x days interest-free on purchases. This applies to all credit cards, not just the Halifax card.

I then cut the card up and was going to write to Halifax to close my account ....

A phone call to customer services should be all that's required, but ask the Hally to confirm closure in writing.

ljn100

Thanks all of you, very useful. I've made the extra payment now so hopefully that will be the end of it. One more reason to not trust the card companies as far as you can throw them I guess...

janet6267

I had this with my Egg card, all clear now though after paying the extra interest. That is two clear and closed this month, I am doing well. Only Barclaycard left now!!

lesley1960

ljn100 wrote: »

Thanks all of you, very useful. I've made the extra payment now so hopefully that will be the end of it. One more reason to not trust the card companies as far as you can throw them I guess...

its nothing to do with trust , its basic maths lol