Credit Card Interest Charges

Colinsmoney

I have a Lloyds/TSB VISA Credit Card and as at 01 February 2006 it was in credit of £0.01.

In February 2006 I charged a single bill (Annual rail fare to London) of £3207.20 to that credit card. In March 2006, before the due date, I paid off £3000.00, leaving a balance of £207.19.

Lloyds/TSB VISA sent me a bill stating that I owed them £207.19 plus interest of £59.38, totalling £266.57.:mad:

When I queried this, it seems I am charged not on the any remaining balance but on the initial bill of £3207.19!

If I was not able to pay (but I can and will) the remaining balance in full – £266.57, I will be charged interest on that £266.57! Unbelievable!

Surely any interest incurred should be calculated on the amount owed after any payment made.

This is an unjust licence for the banks to print money. No wonder there are so many people in debt.

On the 24 February 2006 Lloyds/TSB posted an annual profit of 3.82 billion – no wonder!

Is there anyone out there who also believes this is unjust?

Is there anyone out there knows of a person or an organisation that is challenging this unjust tax on the poor?

Who can I rally to?

Join the revoloution and Lets get them.

bethyblue612

Sadly, ALL credit cards operate the same way - you only get your 'up to 56 days' interest free credit if you pay the FULL amount of the statement by the due date.
Even if you'd paid the full amount less 1p (say!), they would still have charged you the £59 interest.

Sorry, but that's the way it works.

Rafter

No, it isn't fair, but as there is no law governing how interest is calculated, the banks will use such creative calculations to a) maximise profits and b) enable them to offer juicy introductory offers and free cards to people who do pay in full.

The question is, would you rather there were no introductory deals and you had to pay an annual fee of say £20 so that the interest calculation was fair or would you rather keep the deals but have them funded by nasty calculation tricks like this?

My view? Everyone should get the interest free period funded by the charge made to retailers and then the interest from that point should be based on outstanding balance including payments made. Much fairer, much more transparent, but very expensive for the banks and something the regulator doesn't seem to want to do for fear of 'harming competition'!

R.

Colinsmoney

The majority of banks, less those that employ blokes in HongKong nmaed leeson seem to do pretty well. Maybe they could afford to cut thier margins.

Thats why I have copied my rant to my MP and Gordon Brown!

At least it gets it off the chest and i have been given a lesson by those bankers.

Colinsmoney

Rafter

Good for you.

Worth complaining to your local trading standards office too.

The more consumer complaints the office of fair trading gets about the interest calculation, the more likely they are to curb the worst excesses.

R.