Charged Interest for paying off!!!!!!

visjig

Hi All,

My Barclaycard credit card last month bill was £1146.80 which was due on 29th June.

On 21st June, I was nearing my credit limit so I paid £560.50 on 21st June. On 29th June, I again paid another £560.50. So the total that I paid comes to £1121.

My minimum direct debit payment of £25.80 was due to go out on the 29th June. But to my surprise the bank did not request that amount as I had paid some money towards the final payment on the 2st June. Resulting, I got charged interest on £25.80!!!!!

I phoned Barclaycard and they explained the situation which I thinks works towards the advantage of the banks themselves and nobody else. They though offered to give me the 50% of the interest charged back but nothing more!!!!!!

So just a warning to all of those out there who pay off money every month but sometimes pay it early from the due date thinking that the minimum direct debit would fill the rest.

slinga

I always thought that if you paid off in full each month then there was no interest payable to banks.

I've just had my Lloyds TSB Gold Master card statement and noticed they#'ve charged me interest on stuff I pay off in full of 0.945%

Is this the same with ALL C/Cs?

izools

visjig - it's not Barclaycard's fault that you didn't read the terms surrounding Direct Debits. Direct Debit payments are reduced in line with manual payments you've made to the account. If you want to make a payment mid-month, and want to clear the balance in full, make sure not to rely on the DD again.

slinga - some LTSB credit cards don't have an interest free period. I know that the Advance card charges 11.9% APR whether or not the balance is paid up in full. The Platinum still offers the 50+ interest free days like most other cards. I'm not sure about the Gold card, call up and ask them

TFD_2

Safe to say the OP would also have been unhappy if he'd assumed they would stop the DD when he overpaid, but they took it anyway.

Banks can't win either way.

chattychappy

DDs are meant to make people's lives easier - but often cause confusion like this.

peteridms

I Find D.D's far harder to control.. the some times take it early/late...sometimes not at all, and then twice in a week.
standing orders are my preference, and on line banking for the rest...

chattychappy

peteridms wrote: »

I Find D.D's far harder to control.. the some times take it early/late...sometimes not at all, and then twice in a week.
standing orders are my preference, and on line banking for the rest...

Here here - unfortunately threads like this are all too common.

CannyJock

peteridms wrote: »

I Find D.D's far harder to control.. the some times take it early/late...sometimes not at all, and then twice in a week.
standing orders are my preference, and on line banking for the rest...

Each to their own More problems reported by people without DD's than with though

Main thing is to stay on top of your finances whichever route you take - if someone doesn't understand how manual payments affects their DD each month, all they have to do is phone and ask.

izools

The only accounts I pay by direct debit are those that would charge if I used any other payment method - i.e. mobile phone, landline, broadband, energy.

I also pay my water by direct debit, not because they'd charge if I didn't, but south west water's retarted billing system doesn't allow payments to be taken in February and March when paying by SO. Ergo I use DD to ensure the lower monthly cost.

Everything else is paid by Standing Order.

HouseHuntr

visjig wrote: »

They though offered to give me the 50% of the interest charged back but nothing more!!!!!!
.

Card companies might refund charges for 1st timers but never refund interest when it's been legitimately and correctly applied! Sniff sniff!

Parchester

visjig - oh dear. Having fallen into a similar trap you have my deepest sympathy.

Your first big mistake was to believe Barclaycard when you read on your statement in plain English "Your minimum payment of £25.80 will be collected on or after 29th June". Banks are devious scumbags who will find a way to take more of your money by hook or by crook and arm their call centres with scripts referring to arcane terms and conditions preventing a full refund under any circumstances.

Your second mistake was to post on here thinking you were being helpful and providing advice to other moneysavers facing similar situations, whereas the real purpose of this forum is to provide a platform for smug smartass cretins who will just tell you that you are stupid for believing what it actually said on your statement and for not having read the 8 pages of incomprehensible conditions printed in light grey 4-point font.

Maybe some day these pedants will read the Etiquette guidelines at the head of this page and recall that the motto of the site is 'Consumer Revenge'. But I'm not holding my breath...