Warning: 0% promotional rates can be retracted on late payment

Mark1983

Hi guys,

I tend to read more than post here but something happened to me the other day that made me want to post a brief warning. I tried to have a look to see if anyone else had posted this but sorry if I missed it.

I recently discovered that if you make a late payment with this card, they will remove your 0% deal and start taking interest immediately. The t&c entry is as follows:

We will also apply the standard rate (or cash rate if applicable) to Promotional Balances before the end of their promotional periods if you do not make at least your minimum payment by the payment due date or if you exceed your credit limit at any time.

Now I hadn't realised this until it happened to me. Luckily because the late payment was only partially my fault, I was able to get the 0% reinstated, but I was shocked by this practice. If I hadn't been able to get this reinstated we would have been in serious trouble paying over £40 interest a month and there's no way we could have just cleared the card (short of a balance transfer).

I think people's attention should be drawn to this kind of t&c clearly when they take out the card, and am worried for anyone who misses this and is put in a very difficult position by suddenly becoming liable for a LOT of interest.

Just wanted to post this in case there is anyone who doesn't know this. Not sure if Martin has posted a warning in his credit card articles - had a quick skim but couldn't see anything (though I've probably missed it completely!).

Cheers,

Mark.

LongDongDave

Mark1983 wrote:

I recently discovered that if you make a late payment with this card, they will remove your 0% deal and start taking interest immediately. The t&c entry is as follows:

We will also apply the standard rate (or cash rate if applicable) to Promotional Balances before the end of their promotional periods if you do not make at least your minimum payment by the payment due date or if you exceed your credit limit at any time.

This applies to any "special" or LOB rate the CC company offers, not just the 0% deals. Normally tucked away in the T&C, instead of bold type at the top. Best to set up a DD then you should be OK. I used to get myself in a right mess remembering to pay 4 or 5 CC bills every month.

grumbler

Pay at least the minimum repayments. 0% debt is still debt, so always ensure you can afford the repayments. If you don’t meet the minimum monthly repayment you may be fined and lose any special offer deals. The easiest way is via Direct Debit, and the more you repay the better

Martin, Balance Transfers article - see the link in the blue box above ...

TrickyDicky

I had a similar thing with skycard this month.

They screwed up my DD last month so it came up as a late payment and associated fees. Thats was sorted and money refunded. Then this month they charged me interest. But it was reinstated and interest refunded after a phone call.