M&S Money Rip Off

kenHS_2

I know I should know better but..... We did not pay off our M&S card in full last month. Just received our new statement and couldn't believe the interest charged.
If you do not pay off your balance in full then any purchases in the following month attract interest from the moment of purchase -no different from the big No No of getting cash on a credit card.

It won't be happening again because I won't be an m&S cardholder by next statement date!!

NickX

kenHS wrote: »

If you do not pay off your balance in full then any purchases in the following month attract interest from the moment of purchase -no different from the big No No of getting cash on a credit card.

Aside from a slightly reduced interest rate you are correct, not paying off purchases in full every month is very similar to making cash advances because interest accrues from the date of the transaction.

This is how the Credit Card providers make their money. You are best to rip them off by making your purchases at the start of the statement cycle and paying them off in full just before the Payment Due Date thereby getting nearly 2 months of credit interest free. See how they like it

td_007

kenHS wrote: »

If you do not pay off your balance in full then any purchases in the following month attract interest from the moment of purchase -no different from the big No No of getting cash on a credit card.

It won't be happening again because I won't be an m&S cardholder by next statement date!!

This is no different with any other credit card you take up - all of them will charge interest on purchases from the transaction date if you do not pay off the full balance (unless you have a 0% offer).

It is not a rip-off it is the t&c.

nzseries1

Every credit card is like this. Every single one. As others have said, it's spelled out very clearly in the terms and conditions.

I love my M&S card. They gave me 10 months interest free on purchases and I get M&S reward vouchers with my purchases... all of which does not cost me an extra penny.
Big thumbs up for M&S from me :beer:

kenHS_2

Just checkd my first direct card T&C's and it is different. They do not charge on the current month , m&s do. I understand the previous month and of course they will charge. Interestingly Both M&S and FD are HSBC cards !!

NickX

kenHS wrote: »

Just checkd my first direct card T&C's and it is different. They do not charge on the current month ,

Really ?? Please can you post the relevant line from the Terms and Conditions that state this ?

ILW

Looks like someone else has been "ripped off" by being charged what they agreed to when they took the card out.

kadiea

td_007 wrote: »

This is no different with any other credit card you take up - all of them will charge interest on purchases from the transaction date if you do not pay off the full balance (unless you have a 0% offer).

It is not a rip-off it is the t&c.

Exactly... Thats why it's a credit card. If you dont like how it works just use your debit card... you seem to be able to pay it off in full each month:rotfl:

kenHS_2

Re nickX (and others)

I think I have not explained clearly enough! The point is that last month we did not pay off the card balance in full. No problem paying interest on outstanding balances OR purchases But M&S charge you for any new purchases as well as the previous outstanding charges even if you pay off in full next month.

For Nick here is the T&C from First Direct.

"Interest
Interest will be charged daily at the applicable simple rate (which is used for calculation purposes) from the date each transaction is applied to the Account. Interest will be charged until the balance outstanding has been repaid in full and interest will be added to the Account monthly on your statement date. However, we will not charge interest on purchases if the balance outstanding shown on your statement is paid off by the payment due date. Interest remains payable on Cash Advances and on Special Balance Transfers (see Clause 1, Definitions). "

NickX

KenHS, thank you for posting the First Direct wording, but I think you will find that this is exactly what M&S have done in your case. You could try comparing the wording and I think you will find them very similar.

Basically the only way to get one over on the Card Providers (unless you are on a promotional rate) is to pay in full and ontime every month.

kenHS_2

Hi nickX
I'm not trying to get one over on any card co! But I was surprised ! I think the emphasis below is on "Every" and it IS different to fd

Here are the M&S Terms
Interest Free Period
After any introductory period, maximum 55 days for Purchases when you pay your balance in full and on time every month

Interest charging information
The periods over which interest is charged are as follows:
Purchases (other than those stated below)- if the balance is not repaid in full every month, interest on the outstanding balance is charged from the date the transaction is charged to the account until payment is received except during any introductory period.
Item stated below are 1 qualifying furniture Purchases, 2 Balance transfers 3 cash Advances