Credit Card Cleared

jpwhittle

HI,
I have just managed to clear my natwest credit card, and have just recieved a bill statring that owe them interest on the money that i have paid off. They also tell me that this will contimue for another 3 months.

IS this legal???

Any help would be wonderful.

Moggles_2

Having made the minimum or a partial payment last month, residual interest (or trailing interest as it's sometimes known) would accrue on a daily basis from the date of your last statement to the day the funds were credited to your account.

If you were to settle the statemented balance in full for two consecutive months, you would have x days interest-free on purchases. This applies to all credit cards, not just the NatWest card

jpwhittle

SO even though i cleared the card, on the day that the balance was due, im still to be charged interest on zero balance?

Im sorry if this sound daft but iv never come across this on ther other cards that i cleared on that day they gave me a final balance and closed the card, this was wat was ment to happen with the natwest one but its not.

jakesuk

jpwhittle wrote: »

SO even though i cleared the card, on the day that the balance was due, im still to be charged interest on zero balance?

Im sorry if this sound daft but iv never come across this on ther other cards that i cleared on that day they gave me a final balance and closed the card, this was wat was ment to happen with the natwest one but its not.

Yes, because the interest is accruing on the outstanding balance in between the statement date and the payment date. That is the trailing interest.

From what I hear all cards are the same. Makes sense doesn't it?

jpwhittle

nope lol just annoyed that on abalance of zero i have to pay £10 for the next 3 months, so glad ive payed them all of i neve want to see anther credit card again, we have never had this before when we payed of the cards, just seems completly wrong i can accept one month but 3 seems just a litle out of order lol

jakesuk

jpwhittle wrote: »

nope lol just annoyed that on abalance of zero i have to pay £10 for the next 3 months, so glad ive payed them all of i neve want to see anther credit card again, we have never had this before when we payed of the cards, just seems completly wrong i can accept one month but 3 seems just a litle out of order lol

You shouldn't have to settle over 3 months. Should be settled if you pay in full in 2 consecutive months.

I would maybe consider ringing them up and asking a different person because it's not right. Maybe try to pay in full over the phone to settle the account.

jpwhittle

im waiting for the manager to ring me back but the bloke definatly said 3 months wich im not willing to pay. i wouldnt mind we have always payed our bills on time and over the minimum payment and this still find a way to chastise you when you pay in full. he said it says this on the back of my bil but ive read it loads and it definatly doesnt

TrickyDicky

jpwhittle wrote: »

im waiting for the manager to ring me back but the bloke definatly said 3 months wich im not willing to pay. i wouldnt mind we have always payed our bills on time and over the minimum payment and this still find a way to chastise you when you pay in full. he said it says this on the back of my bil but ive read it loads and it definatly doesnt

This is just interest on the balance before you paid it off. Then you have interest on the interest. So its perfectly legal and fair. If you just pay off the entire balance for 2 months in a row it will stop.