Capital One Purchase Interest but No Purchases!

leew

Hi guys, hope someone can shed some light on this.

I seem to be getting charged purchase interest when i've not actually purchased any goods outside my interest free period

I did do a balance transfer when they offered a 12mth 0% period - see below but i haven't bought anything whatsoever as i knew my 0% on purchases was up.

Here is a list of the fees/transactions:

Current Balance £597.18
03 Jan 2010 03 Jan 2010 PURCHASE INTEREST £5.12 :mad:
01 Dec 2009 01 Dec 2009 PURCHASE INTEREST £4.65 :mad:

15 Sep 2009 BALANCE TRANSFER FEE £17.57
14 Sep 2009 BALANCE TRANSFER £585.65

Any ideas as to why the purchase interest?

Thanks.

Paul_Herring

Interest on the BT Fees?

leew

Paul_Herring wrote: »

Interest on the BT Fees?

Hi,

I don't think so - my purchase fee is 14.00% so it says so it doesn't add up.

I'm useless when it comes to little things like this :mad:

It's driving me bonkers!

td_007

Have you checked this direct with Cap One? What do they say?

PurpleJellyFish

It looks to me that you are being charged interest on the whole balance on the card. Are you sure that you had a zero balance when you did the BT? If so then you need to speak to Capital One and ask them to explain why there is interest on your statement.

cse

Cap One call interest charged on Balance Transfers "Purchase Interest" on statements, as well as interest charged on purchases. That said, if you're on a 0% BT promotion then you shouldn't be charged interest on the BT or the fee. Definitely worth querying with Cap One

sandravan

Get rid of them this is only the beginning, they will add and add and add and then justify it at the end. I had a card with them which I cut up and send back to them in 2007. They are now hounding me for £450 for interest, late payments, fees etc etc after I instructed them to close the account. They will take no notice of you and you life will become a nightmare. Close and get rid of them.

leew

Hi guys, thanks for the replys.

I've been on to them and they have said this

"Thank you for your message. I understand that you're concerned with the purchase interests that we've added to your account. Please note that your purchases have an interest free period of up to 56 days, if you repay your full balance before the payment due date on your statement each month. If your full payment doesn't reach your account by that date, we charge you interest. On your 1 December 2009 statement, your balance was £612.06. You sent us a payment for £20. As this was less than your full balance, we added interest. I hope I've clearly explained this for you" :mad:

Looks like they are charging me interest on the balance transfer :mad:

Paul_Herring

Form_Letter wrote:

Thank you for your message. I understand that you're concerned with the purchase interests that we've added to your account. Please note that your purchases have an interest free period of up to 56 days [...]I hope I've clearly explained this for you

Reply :
1) No, it's not clear and
2) Point out to them that there are no purchases in the balance - only a 0% balance transfer with associated fee, and
3) Demand an explanation on which particular items within the current balance are generating the interest.

newyearnewme_2

I had something similar with BofS and the purchase interest relates to interest on the BALANCE TRANSFER FEE as this is classed as a purchase and not a balance transfer! insane!:mad:

Paul_Herring

newyearnewme wrote: »

I had something similar with BofS and the purchase interest relates to interest on the BALANCE TRANSFER FEE as this is classed as a purchase and not a balance transfer! insane!:mad:

This is a well known 'trick' by now - only the BT itself is at 0%, the %age BT Fee is not at 0%.

A few CC's have the payment hierarchy set up such that the BT fee gets paid off before the BT itself, the majority have it the other way where payments go towards paying off the BT first, leaving the Fee to incur (compounded) interest until the BT is paid off.