Pay off my NW card monthly but been charged interest.

Bored_Housewife

My husband and I have had Natwest mastercards for years.

We use it and pay the balance off in full each month.

The statement date is 24 of the month, we pay on 28 with a direct payment that reaches the account on the same day. Always in full.

In August i withdraw cash while abroad. It amounted to 163.92 the interest that month was 2.29.

In September the interest was 0.35p, which I understand is the interest on the 163.92 for the dates between 24 and 28 of the month.

This morning I have checked my online statement and see that I have been charged 34.67 interest.

No further cash had been withdrawn on the card since 6 August 2009.

Have I missed something?

Robert_Sterling

Have you missed something
You can telephone the Nationwide and ask them
Pleas let us know what they say.

bingy_burge

why draw cash out on credit card are you mad!! That will be remaining interest as its calculated monthly on cash advances.

Why didnt you use your debit cards?

TFD_2

bingy_burge wrote: »

why draw cash out on credit card are you mad!! That will be remaining interest as its calculated monthly on cash advances.

Why didnt you use your debit cards?

The interest won't be 20% of the cash withdrawl in 2 months, so an unhelpful post!

If the account is paid in full each month, then after the small interest charge 2 months later is paid, then that should be the end of it. From the limited information you've given, it does sound like it could be an error.

TFD_2

Robert_Sterling wrote: »

Have you missed something
You can telephone the Nationwide and ask them
Pleas let us know what they say.

I'd ring NatWest myself, they're more likely to be able to help

ACG

Hi,

This is how it works - i had o explain this hundreds of times when i worked for NW/RBS/Tesco/Mint credit cards....

You withdrew cash on the 6th August (I think) interest was charged from this day up until the day you paid off in full (which was the 28th August), your statement was printed on the 24th August. So your september statement has 4 days worth of interest on (24th-28th).

As you pay your statement a month in arrears (which is how it works) they cant calculate the interest for next month before the statement is printed because although you have a DD and possibly a perfect record with them they dont actually know the DD will clear and whether or not you make change the payment date etc.

I was never one to hide behind T&C's and always preferred to explain how it worked so that people never did it again you will find half of the advisors cant actually explain how it works and may just offer to refund it rather than debate it, but it will cost you more in a phone call and contrary to popular belief... its not the principle! - It is totally valid charge on the account. Its called residual interest, and as an advisor/supervisor and then manager, would only ever refund it if people understood it so they wouldnt do it again.

TFD_2

ACG wrote: »

Hi,

This is how it works - i had o explain this hundreds of times when i worked for NW/RBS/Tesco/Mint credit cards....

You withdrew cash on the 6th August (I think) interest was charged from this day up until the day you paid off in full (which was the 28th August), your statement was printed on the 24th August. So your september statement has 4 days worth of interest on (24th-28th).

As you pay your statement a month in arrears (which is how it works) they cant calculate the interest for next month before the statement is printed because although you have a DD and possibly a perfect record with them they dont actually know the DD will clear and whether or not you make change the payment date etc.

I was never one to hide behind T&C's and always preferred to explain how it worked so that people never did it again you will find half of the advisors cant actually explain how it works and may just offer to refund it rather than debate it, but it will cost you more in a phone call and contrary to popular belief... its not the principle! - It is totally valid charge on the account. Its called residual interest, and as an advisor/supervisor and then manager, would only ever refund it if people understood it so they wouldnt do it again.

How does that explain £35 interest on a £160 withdrawl?

Robert_Sterling

TFD wrote: »

I'd ring NatWest myself, they're more likely to be able to help

Very nicely put.

jonesMUFCforever

TFD wrote: »

How does that explain £35 interest on a £160 withdrawl?

Its not £35 interest on a £160 withdrawl but a month's interest on the whole amount outstanding on that statement.

TFD_2

jonesMUFCforever wrote: »

Its not £35 interest on a £160 withdrawl but a month's interest on the whole amount outstanding on that statement.

But if you pay the statement balance in full, you would not pay interest on purchases, regardless of residual interest, surely?

jonesMUFCforever

But if money has been taken out on the card it is not classed as a purchase.