Interest and PP more than minimum repayment

callansdad

Hi all i need just a little bit of advice before i take this further

I have a balance on my Royal Bank Scotland Credit Card (slap my wrist)

Things have been a bit tight the past few months so ive just been paying the minimum monthly payments.

My question is ... on my statement i have just recieved .. the interest and the payment protection payment add up to about 75p more than the minimum repayment.

I know its just 75p but surely there must be rules they have to adhere to regarding the minimum payment being more than the interest charge?

I know that by paying the minimum payment all the time it can take many years to pay off a balance but if the interest and pp charge are continually more than min payment you would never pay it off.

Any advice please

grumbler

PP is not an interest charge. This is the same as any purchase. Minimum payment is calculated from you statement balance without any regard to purchases you made with this card.

P.S. After reading YB's post below I see that I was probably wrong and mimimum payment does include PP.

YorkshireBoy

RBS minimum payments are "rounded down to the nearest pound", which will explain why there's the 75p discrepancy.

Rafter

grumbler,

depends on the terms and conditions. Payment protection can be treated as just another purchase and therefore the minimum payment could just be interest and the bill would never be paid off. Arguement being you could put any other insurance on the card as a standard purchase.

YB is probably right that in this case it is just RBS rounding down.

R.