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Capital One charged me interest on a refund?
24skins
Posts: 1,773 Forumite
in Credit cards
I have a Capital One card that I used solely for internet transactions and pay the balance in full - give or take a few pence - each month. Last month's statement came to £110.99, I made a payment of £110 well within time.
During the time between statements I'd ordered an item which cost £8.99 - the item had been out of stock and the company refunded my credit card promptly. The credit was shown on last months statement.
When I looked at this months statement I had £2.61 interest, I've queried how I could have accrued over £2 of interest on a balance of 98p and Capital One claimed that the refund I received does not count as a payment and therefore my balance was actually £120 for interest calculation purposes and I should have paid this amount to avoid interest charges, regardless of the fact that my statement clearly says £111! Is this correct? If so it's a nonsense! Surely if that's the case they can keep charging me interest on the non-existent £9 forever more? The man on the phone claimed all the usual, it's in your terms and conditions etc, I've never heard of this before and wonder if anyone could shed any light...
During the time between statements I'd ordered an item which cost £8.99 - the item had been out of stock and the company refunded my credit card promptly. The credit was shown on last months statement.
When I looked at this months statement I had £2.61 interest, I've queried how I could have accrued over £2 of interest on a balance of 98p and Capital One claimed that the refund I received does not count as a payment and therefore my balance was actually £120 for interest calculation purposes and I should have paid this amount to avoid interest charges, regardless of the fact that my statement clearly says £111! Is this correct? If so it's a nonsense! Surely if that's the case they can keep charging me interest on the non-existent £9 forever more? The man on the phone claimed all the usual, it's in your terms and conditions etc, I've never heard of this before and wonder if anyone could shed any light...
Quid quid latine dictum sit, altum videtur
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Comments
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Last month's statement came to £110.99, I made a payment of £110 well within time.
Right, forget the refund that is not the issue here. You did not pay your statement balance in full, you were 99p short. Therefore you did not qualify for an interest free period and were charged interest in full on all your transactions from the date they were made to the date you sent in the payment.
You only get an interest free period if you pay the entire statement balance in full.
To be honest (and please don't be offended here) what you are doing is complete madness. You are paying almost the full balance but leaving it short by pennies. In doing so you are losing your interest free period. For the sake of 99p you would be much better off settling in full.0 -
NickX has hit the nail on the head. If you don't pay in full you pay interest on the entire statement balance.#145 Save £12k in 2016 Challenge: £12,062.62/£12,000.00 Beginning Balance: £5,027.78 CHALLENGE MET
#060 Save £12k in 2017 Challenge: £11,03.70/£12,000.00 Beginning Balance: £12,976.79 Shortfall: £996.30:eek:
This is the secret message.0 -
as above, not sure why eve if you didnt get intrest free that you would leave 99p o/s0
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