Cash Purchase Interest Charges

bethel3

Help please!
This month I paid off my credit card. Yesterday I discovered that a charge of £8.82p for cash purchase interest is showing. When telephoning I was told this was from Nov 25th to Dec ? I disputed this charge simply because I haven't used the credit card for either a purchase or cash withdrawel. In fact I haven't used the cash facility since the summer of 2005.

This made me check my previous statements (since 2005) & I now see that each month a charge for cash interest has been made each month even though I haven't used the facility.

I may be a dummy in asking this but is this a right practice i.e. a Bank charging interest for a facility that hasn't been used?

I have officially complained to the Bank further stating that I would be changing Banks with all my accounts. But since sending this email of complaint a further question has arisen.....do I have the right to challenge the Bank regarding all the monthly cash interest charges they have made on my card since 2005 when I haven't used the facility?

Any advice would be much appreciated! With thanks.

CLAPTON

do you pay the full balance each month?

lisyloo

Can you ask them which transaction(s) the interest relates to?

Are you sure you aren't paying any on-line betting sites or anything similar.
Are you making any regular payments?
On-line gambling and other "money transfers" may count as cash and that might be why you don't recognise them as cash, but the first thing to do is to ask them to point you to the cash transaction(s).

bethel3

lisyloo wrote: »

Can you ask them which transaction(s) the interest relates to?

They just say charges were for the cash facility.

Are you sure you aren't paying any on-line betting sites or anything similar.
Are you making any regular payments?
On-line gambling and other "money transfers" may count as cash and that might be why you don't recognise them as cash, but the first thing to do is to ask them to point you to the cash transaction(s).[/quote

No to all. Have only used card for purchases.

Thanks for responding!

bethel3

CLAPTON wrote: »

do you pay the full balance each month?

No, have been only paying just over the minimum each month.

Thanks for responding!

Stardust77

Have you ever used it for foreign currency maybe??

nobblyned

If you have held a balance all the way from when you last used the card for cash - even if that was right back in 2005 - the cash part of the balance on the card will have never been paid off due to negative payment hierachy, hence you are still paying the interest on it.

Only way to clear would be to pay the balance in full 2 successive months.

YorkshireBoy

nobblyned wrote: »

Only way to clear would be to pay the balance in full 2 successive months.

...or if you want shut sooner, just overpay slightly to create a positive balance.

Depending on the card provider, it may be best to wait until you have a zero balance statement before starting to spend on it again.

Stardust77

I thought the point the op is trying to make is that he/she's never used the card for cash/gambling or any other cash withdrawal facility, only purchases, so why are they being charged cash interest, not why are they being charged interest full-stop?

Bethel3 - assuming you're aware you're being charged interest on the balance due to only making the minimum payments, cash interest is only normally charged on cash withdrawals, money transfers, foreign currency (even through travel agents) or gambling/betting. If you're confident you've not used the card for any of these types of transactions then ask the card provider to highlight the transaction thats attracting the interest and provide a copy of the statement.

jamalfatty

Stardust77 wrote: »

I thought the point the op is trying to make is that he/she's never used the card for cash/gambling or any other cash withdrawal facility, only purchases, so why are they being charged cash interest, not why are they being charged interest full-stop?

Cash interest applies to things that some people may not be aware of and is a common question on here so they may have used it unwittingly for something classed as cash.

Going back to the OP, one thing that has always puzzled me - the OP said they have made an official complaint - how does a complaint become 'official' rather than just a bog-standard complaint?!

lisyloo

ow does a complaint become 'official' rather than just a bog-standard complaint?!

There is usually an official complaints process, often on the webiste.
You need to address your complaint to THAT department at THAT address.
It's important to do so because it goes to the right people.
Also you cannot take you complaint independently i.e. to the ombudsman, until you have exhausterd the proper complaints procedure.

A complaint would not be done properly if you sent it to an adress you found on the paperwork as opposed to the correct depertment and address.
If you do it properly there are usually set timescales in which they have to respond and you have the right to go independently for free.