Credit Card Con

Shiny.Side.Up

Connedman2009 wrote: »

Obviously some people just read what they want to read and ignore everthing else. Please note that I always clear the full amount each and every month. If you are offered 0% interest for six months then even to the simplest mind that means 0% interest for six months. There was a handling charge of 2.5% added to the initial amount so the loan was never entirely free anyway. To my mind therefore it is still a con because it is not FREE!

Some people also only read what you put.

You said in your original post that was interest free with a 2.5% handling charge. It will have said in the small print a 2.5% handling charge and if you had rung up and asked them before taking the offer on, guess what they would have said?

Altogether now... "2.5% handling charge".

I -really- don't see what your problem is. The loan is clearly stated as INTEREST free - And did you get your INTEREST free? Yes you did. Did you pay the 2.5% handling charge, as stated in the fine print? Yes you did.

You don't get money for nothing, so sit down and shadd'up.

Typhoon2000

Barclays aren't charigng you interest on your Interest free loan/cheque, the interst you are paying is for you subsequent card purchases. Whilst previously you could get up to 56days or whatevever intertest free card purchases if you cleared your balance in full, now that you have this loan and you are not clearing your balance in full every month the CC company is charging you interst on your card transactions (not the interest free cheque transaction).

td_007

Unfortunately you have been caught out by the payment hierarchy that card companies employ to their advantage. So while they shouted out the interest free loan to you they just whispered to you about the payment hierarchy.

The govt says it plans to ban this setup but only time will tell...

LeeSouthEast

It's for this reason you should never use a credit card for spending that you have an active 0% balance transfer on. You will pay interest on ALL purchases UNTIL you've paid off the entire transferred balance.

CannyJock

Connedman2009 wrote: »

Obviously some people just read what they want to read and ignore everthing else. Please note that I always clear the full amount each and every month. If you are offered 0% interest for six months then even to the simplest mind that means 0% interest for six months. There was a handling charge of 2.5% added to the initial amount so the loan was never entirely free anyway. To my mind therefore it is still a con because it is not FREE!

In this instance it's your understanding that's wrong. You misunderstood the allocation of payment part of the T&C's and misunderstood there was a fee involved.

For what it's worth, think about all of the "interest free" offers you see in furniture shops. The price they charge actually includes interest at roughly 17% APR. By loading it into the advertised price, the finance company get the money they want and the retailer gets the money they want.

Don't feel too bad about finding out the hard way how things really work, every day is a day in school

Connedman2009

To the people saying I did not understand the way the CC Company take the money thank you I can see that now and it was a bit silly on my part. Having always paid off the debt in full each month I have never fallen into the trap that many others have with regard to CC debt. However I still think that it is a con albeit a clever one as the system is not spelled out in large bold plain clear english right at the start as is the dubious offer. If it had been I would not have entertained it at all. Hiding behind the small print is still a pretty shady business at best but hey what should we expect from the bunch of ***s that have wrecked the economy and have been bailed out with taxpayers hard earned cash.

~Brock~

Connedman2009 wrote: »

Hiding behind the small print is still a pretty shady business at best but hey what should we expect from the bunch of ***s that have wrecked the economy and have been bailed out with taxpayers hard earned cash.

It is mildly ironic that your 'complaint' is concerning a company that hasn't had a single penny of taxpayers cash.

CLAPTON

Connedman2009 wrote: »

To the people saying I did not understand the way the CC Company take the money thank you I can see that now and it was a bit silly on my part. Having always paid off the debt in full each month I have never fallen into the trap that many others have with regard to CC debt. However I still think that it is a con albeit a clever one as the system is not spelled out in large bold plain clear english right at the start as is the dubious offer. If it had been I would not have entertained it at all. Hiding behind the small print is still a pretty shady business at best but hey what should we expect from the bunch of ***s that have wrecked the economy and have been bailed out with taxpayers hard earned cash.

surely, as you can pay in full anyway, then you haven't lost much anyway ?

CLAPTON

danielanthony wrote: »

This is obvious, surely? You always end up paying the lowest interest attracting sum off first. Credit Card companies are there to make a profit, how else do you think they can afford to employ people to listen to you complain needlessly?

not so obvious.. nationwide don't do it that way

CannyJock

CLAPTON wrote: »

not so obvious.. nationwide don't do it that way

And isn't there some discussion about new rules meaning positive payment allocation will become standard?