Is this a rip-off or i just don't get it

violetmva

Few years ago i took a credit card from Adams. Never had problems, as i was paying it in full. Just before Christmas i forgot to make a payment, as we just move home and wanted to make it nice before the holidays. It just slipped my mind. I was fined for late payment on my next statement. As i lost my job i had to start making only the minimum payments on the card. And i was paying them - the amount shown at the end as a minimum. Well, because i didn't pay in full i guess the interest put was making the account going over the limit. So now i'm charged every time for overlimit charges.My question is doesn't the minimum payment requested by the card issuer, have to cover and make sure the account is in limit? I have a Barclaycard and never had problem of that sort when i was a making a minimum payment

moozie_2

Hi there

I am not sure if I got this right but, to me it seems possible that if you pay the minimum of a card that has exceeded its limit and interest plus charges are applied, then it could go over the limit.

Let's say a card has a limit of £2000 and you have spent £2200 on it. If the minimum is 3%, then £66 is paid. Even though the minimum payment is made, you'd still be over the limit of £2000 even without charges and interest. Obviously I don't know what your figures are so this is a big assumption.

I am not very good at this but I am sure someone more skilled/wise will e along to give their views.

climbgirl

The minimum payment is calculated as 5% of the amount owing on the card, it's got nothing to do with whether you're over your limit or not as far as I'm aware (please correct me if I'm wrong!)

It's not the bank's responsibilty to keep you within your limit by adjusting your minimum payment accordingly, it's yours. Unless there's something in your account terms and conditions that says otherwise?

lynzpower

You could always try to claim back your overcharges- as many people on here are already doing.

IM about to dig through my bank statements and see what I can get back - gotta be worth a stab!

Chortle_2

Usually, a card will make you pay back a % of the balance each month as a minimum payment (standard is 2 or 3%) and if you're over the limit, they normally add the total amount that you're over by, onto the minimum repayment, and expect that as well. So if your minimum repayment was £100 and you were £50 over your limit, you'd need to pay £150 that month.

Although, in some cases, the direct debit (if thats how you pay) only takes the normal % payment - so you'd need to 'manually' pay the extra. (If you don't, and they don't add it to the DD, you'll be stung with charges on top of charges, on top of charges, so watch out)

HTH

violetmva

Thank you all!
I was just wondering why Barclays always calculate the minimum so i don't go over the limit and Creation, which provides my Adams card doesn't. Aren't the rules the same for every provider? Or store cards are making everything possible to get more money from us? I know it's my fault for missing one payment, but when last month i payed, what i thought was enough to clear what was over the limit (the advisor who took the payment told me so), and now it started again.

climbgirl

violetmva wrote:

Thank you all!
I was just wondering why Barclays always calculate the minimum so i don't go over the limit and Creation, which provides my Adams card doesn't. Aren't the rules the same for every provider?

I think you'll find it's different for every account, you need to check the terms and conditions to make sure.

Bestthingsinlifearefree

The moral of the story is with credit cards, finance agreements e.g "interest fee" sofa deals or 0% interest credit card details.

You need to read the credit agreement with a magnifying glass and make sure you truly understand it.

Because if you slip up you will get hit with late payment penalties or find you get backdated interest or suddenly you have not qualified for 0% and are now paying 15%.

Some times I think these agreements are almost designed to help / make people slip up.

BUT: if you borrow the money / sign the contract the obligation / responsibility is on YOU to really know what you are getting into as all the detail is always hidden in the small print the onus is on YOU to find it with your magnifying glass !!!

CLAPTON

even if you have broken there terms and conditions they are not allowed to charge you punative charges ..only recover their costs
you may wish to read about it and reclaim unreasonable penalties


http://www.bankactiongroup.co.uk/