Extra interest charged

theresa1a

Hi

I wonder if anyone can help? What I need to know is, is it legal for credit card companies to charge interest after you have paid the balance in full?

My husband decided to pay off his credit card balance of over a £1000.00 on the 29.6.09 before the due by date. He has just received a statement charging him £14.24. He rang the company and was told it was interest accrued between the 18th and 29th June.

Is this right?

Any advice gratefully received.

Theresa

McKneff

they are spot on I'm afraid.
there is a time frame between the statement going out and the payment going in so interest is due on that. Sorry

nzseries1

If your statement is produced on 18th June, and you pay off the full amount on the 29th of June, there is still interest to pay between the 18th of June and the 29th, which you will have to pay next month.

To avoid "trailing interest" (as it's known), you have to pay in full twice in a row.

Moggles_2

AFAIK, all credit cards charge trailing interest (or residual interest as it's sometimes known), if you decide to pay off your statement balance in full, having made the minimum or a partial payment the previous month.