0% Credit Cards Are Evil

cjw

Hi Guys,

Is this a bit sharp pratice?

Last October my father went to book a cruise at Thomas Cook, but when he came to pay the deposit they asked if he wanted to take out their credit card and he would earn their travel money thing everytime he spent on his CC. So he applied and got it. It also came with 0% interest free on purchases for this first 3 months.

My father is a man like myself who pays his CC off every month completely, as he won't pay the interest.

Anyway the first month the deposit was on his CC, so he paid it when it was due, no problem.

In thee 3rd month the balance of the cruise was due and it was debited on his CC. So far so good. His cut off point was the 19th Jan and the payment had to reach the company by the 4th Feb. So like before he phoned the company up on the 1st Feb to pay his balance, but found the system had changed and was now fully automated. He proceeded and entered his debit card details and amount, but it kept coming back saying please enter a different amount. By the 4th attemped he gave up and paid by his online bank account. On the 4th Feb he phoned the CC company to make sure that they had received his payment, but hadn't. So he explained the problem he had using their automated system and they said that they couldn't take more than £3000 from a debit card per day due to laurdering reasons. He had an argument with them, because he would be charged £12 for late payment and that there was nothing to tell him in the paper work about the £3000 limit. In the end they admitted that they cannot publish the fact there is a £3000 payment limit due laurdering reasons and put a credit of £12 on his account. Okay, fine.

Today however, he receives his new CC statement, fines the £12 debit and credit on it, but he fines a £24 interest charge. He phones the CC company and asked about the £24 charge. To cut the long story short, its this 3 month 0% interest free on purchases.

Here's the problem, his cut off period is the 19th or the month, payment isn't due until the 4th of the following month. BUT the 0% interest free period ended on the (I think) 8th Jan and because there was a balance on the card by that day and wasn't cleared by that date, they charged him interest. They confirmed that the end date for the 0% interest free period does not match the normal statement payment due date and they do not inform you in advanced.

My father has gone through the T&C's and everything he has received and there is not a start date or end date for the 0% interest free period. More importantly he wasn't using the free period and had no plans to, but it automatically clicks in as soon as you use the card.

We feel this is very sharp pratice and for not informing you in advance about the end date for the interest free period is totally shafty!

He is waiting for them to phone him back, but if they don't drop the charge, he will take them to task!

Has anyone come across this problem?:mad:

:money:Martin - when you are on GMTV telling people to get & use these interest free period credit cards, please point out about the 2 dates don't match.

Cheers

lisyloo

Has anyone come across this problem?

Yes I've never been told the account opening date either.
I've got round it by picking up the telephone and asking "please can ou tell me when my introductory period starts/ends"

please point out about the 2 dates don't match

Did anybody ever tell you they matched??
Or was this your/your dad's assumption?
Personally I've never seen that stated anywhere and I think you/he assumed it without checking.

I do agree with you that they are not transparent, and it's not obvious.
But I don't think that excuses just guessing or making assumptions.
If you have a query it's not that hard to pick up the phone and ask.

Any

The heading of this thread is completely missleading.

0% credit cards are not evil at all. You just have to know how to use them. Cars are not evil just because you can't drive either.

Taking credit card from non-financial based organisation is stupid in the first place, they tend to have slightly different rules or make their own rules in general.

Typhoon2000

If you dad had paid his credit card in fulll by the due date instead of paying late there would have been no interest to pay, irrespective of when the 0% deal ended.

ste_coxy

I think it might be due to the card being paid "late" - credit card companies are within their rights to withdraw any offer of 0% when this occurs. This should be state in the T&C's

cjw

Hi Guys,

Thanks for the replies. As my father only applied for the credit card just to get back some Thomas Cook money and for no other reason, what you have said said is a bit unfair. He had no interest in the 0% interest free period and as far as he was concerned, he was paying off the full amount each month. Therefore, he had no reasons of concern to think about the free period or even pick up the phone to ask anything because he was paying the full amount each month. Also there is nothing to say otherwise. So guessing or making assumptions is not the case, as we did not know this was how it work.

So I stand by what I have said. I do think these 0% credit cards are missleading and sharp pratice. It should be made clear about the end date of the offer and how it work and point out to people that pays their bill in full each month that they may be liable for paying interest.

It is alright when you know how the system works, but for people that don't this is when it bad.

Typhoon2000 - You would had noted that the end date for the offer was well before the monthly bill date was due hense the reason they have charged him interest.

Cheers

neas

indeed i have a credit card and pay in full every month with direct debit... i dont bother with these 0% interest cons... just use mine for credit rating and points

lisyloo

but for people that don't this is when it bad.

Your Dad needs to read his contracts and understand them.
If he doesn't understand it he shouldn't sign up.

Simple as that.

_Andy_

neas wrote: »

indeed i have a credit card and pay in full every month with direct debit... i dont bother with these 0% interest cons... just use mine for credit rating and points

How is an agreement which has 0% interest for a period and then a variable one (clearly stated in the credit agreement) be a 'con'?

Any

cjw wrote: »

It is alright when you know how the system works, but for people that don't this is when it bad.

Sorry - this is the whole point - don't get involved with something you don't understand and are not willing to come to understand!

It is the same like buying a car and then blaming car salesman that he didn't tell you there is requirement of having driving licence!

Saying that, all my credit cards clearly state - 0% offer until your March 09 statement date...

IMO - Thomas Cook is holiday specialist, why would you take your first credit card from them? I am an accountant, would you ask me to repair your car?

You cannot dismiss 0% cards in general because there is one that you got caught by.

DGJsaver

Thomas cook may brand the card but its ran by a bank , not the Thoms Cook credit card dept....