Charging Interest after balance paid off?!

enchantica2

I paid off my credit card before the due date last month(£4k). Looking forward to a clear balance I have just got this month's statement but was shocked to see a £40 interest charge!! They said it was reclaimed interest from the date of my last statement to the date I paid the balance. I thought thats what due dates were for - not so they could add more interest! Is this right?? Any advice greatly appreciated.

chattychappy

This comes up time and time again. They are correct.

Due dates are simply the date by which they require the minimum payment.

A statement is generated and shows the balance at that date. Interest continues to accumulate. Some days later, your full payment reaches them. Then the balance is cleared - except for interest between when the statement was generated and your payment reached them. This interest - as you discovered - appears on the next statement. If you pay that off in full, then you won't get any more interest. It's sometimes called "trailing interest". You generally need to pay off two consecutive statements in full to see the back of interest.

bengal-stripe

It’s called “residual” or “trailing” interest and all credit cards work like that. Your interest, charged in the statement, only covers until the statement date. Interest is charged daily, so whether you payment arrives two or twenty days after the statement date, does make a difference.

Once you have paid two consecutive statements in full, there is no more trailing interest.

enchantica2

ARRRGGGHHH. After all these years paying them untold amounts of interest too!! I was lucky enough to be able to pay off my M&S card too, they didnt add on the interest this month (and it was a bigger bill!).
Thanks for your quick replies.

Fiddlestick

quick_cash_payday wrote: »

Write them a letter of complaint - it often does well

On what grounds?

Percy1983

Fiddlestick wrote: »

On what grounds?

That they charged you interest on the terms and conditions you signed up for...

...oh wait...

stephane_2

quick_cash_payday wrote: »

Write them a letter of complaint - it often does well

Absolute non sense.....

themull1

:rotfl::rotfl::rotfl::rotfl: