RBS 0% BT - Erm... not quite

Jigga

Hi Guys
Don’t worry, it’s not one of those, is this legal? I’ve been swindled threads, just thought it might be worth noting as I had overlooked this when I made the agreement and then found it in the terms and conditions on the initial letter when the issue became apparent to me.

All other 0% Balances Transfers (BTs) I have ever done previously have given me the 0% on the BT and the fee for the period. With my latest RBS 0% BT, I have no interest on the amount transferred, but they do charge standard rate interest on the BT fee from day one .


Oh well, it's still cheap credit, but not quite 0%.

jonesMUFCforever

This practise is becoming more widespread.
One way round it may have been to put the card in credit by the amunt of the BT fee. I know this work for me with MBNA don't know if it works with everybody.

Iand1

As Natwest are part of RBS, they have done the same to me.

Interest charge this month of....... 9p

Was gonna call them to have a moan, but for 9p, will not worry.

Now if it was £9..............

fozmcfc

Never come across that before, will definately look at that if I was to ever do a BT again.

Bit cheeky, particularly if you are transferring a large balance, something like £5000, the BT fee would be quite high and so the interest would definately build up, if any payments went towards the BT and not the BT fee first.

Jigga

My BT was £2,850. Fee was £85.50 (3%) and the interest for the first month £1.06.

The back of the letter with the offer has three items of ‘Important Information’. No. 2 is: ‘Please be aware that the balance transfer fee will attract interest from the date charged until paid off’.

However, the good news to come out of this is the allocation of payments:

1 – Interest of special offers
2 – Other interest, any fees and charges
3 – Special offers shown on your statement
4 – Purchases and BTs
5 – Advances and money transfers

You've always got to keep looking for the good..... or make a BT elsewhere if there is no good to be found

MsAnderson

How annoying, I asked this very question recently - do you pay interest on the BT fee. I think all answers came back as no. Flippin flip.

But as jonesMUFCforever suggests, if you overpay an amount to cover the fee before you do the BT, do you avoid the interest altogether, or will they offset that amount on the BT, leaving the fee outstanding in its entirety?

This is v disappointing.

Jigga

Hi MsAnderson. I had a look at your earlier post. The BT I have done is a letter offer on an RBS card that I have had for a couple of years whereas you appear to be a new cardholder so they may have different terms for you and hopefully no interest for the introductory period at all.

As indicated, I have done a lot of BTs, both as a new cardholder and from letter offers on existing cards and it has always been wholly and truly interest free for the specified period with the only cost being the BT fee. This is the first time I have come across interest on the fee.

[FONT=&quot]As Foz said, my thoughts are that it is a bit cheeky, but as so many people quite rightly say on this forum, it is up to the lenders what their terms are and it up to us to read and understand those terms prior to agreeing to them. [/FONT]