Cash interest charges

keelo

Hi,
Can anyone comment here please? I checked my Capital One card account and see that I am still paying cash interest though I haven't even used the card for about 2 years as far as I remember. I got a new card which I never activated and I am trying to pay off the balance. I queried how much cash I had taken out and how much interest I have paid and got the following reply:
Thank you for your message. Please note that we work out interest on cash each day starting on the day that the cash withdrawal is added to your account. This means that borrowing cash isn't interest free. However, the earlier you repay it the less interest will be charged. To avoid paying cash interest, you will need to clear your balance in full by paying the settlement figure for your account. If you want us to send you the settlement figure, please let us know. Having checked your account, I can confirm that you made cash transactions with Royal Bank of Scotland for £20 on 3 August 2006, Royal Bank of Scotland for £30 on 2 December 2006 and (cash machine abroad) for £76.73 on 5 April 2007. Unfortunately, I’m unable to tell you the exact total cash interest we charged you on your account. However, I can confirm that we’ve charged you approximately £107.75 as cash interest. I hope that this information helps you. If you have any other queries, please send us a further secure message.
Isn't this a bit excessive? I asked about my APR and they said: Your rates are 30.09% p.a. on purchases, balance transfers and cash withdrawals. I originally got the card to help with my credit rating and so wish I did not!
Any views? Thanks

YorkshireBoy

keelo wrote: »

Any views?

Cash balances are always the last item to be repaid.
You'll need to either BT the debt away or clear the entire balance to stop the interest accruing.
Don't ever withdraw cash!...and certainly not if you already have a revolving balance.
Read, and understand, your T&Cs before making use of financial products.

CannyJock

keelo wrote: »

Isn't this a bit excessive? I asked about my APR and they said: Your rates are 30.09% p.a. on purchases, balance transfers and cash withdrawals. I originally got the card to help with my credit rating and so wish I did not!
Any views? Thanks

It's one of the reasons why we're advising people every day not to withdraw cash on their cards. The immediate interest together with the allocation of payments rules means you'll be stuffed with interest at some point.

You should overpay the card balance to clear it and create a negative balance to cover the interest not yet added (overpay by the estimated interest and add a bit on for good measure). This will turn off the interest and you'll get a nil or credit balance statement.

keelo

Thank you, lesson learnt of course! What is BT?

YorkshireBoy

keelo wrote: »

Thank you, lesson learnt of course! What is BT?

BT = balance transfer