credit card cash interest

eliza_Mc

Hi, Can anyone out there explain why . . . paid my Barclaycard off in full in May and since then have been logging complaints with their overseas customer services because they are still charging me interest but they couldnt tell me why - have not spent a penny on it since it was paid off (incidently 6 days before payment due date) - thanks to a user on this site I found a UK number and called it today and was told it was interest payable on a cash withdrawal I made in December!!! This is apparently called cash interest???? They have also been rate jacking me for over 12 months!!! Is there no end to this thieving!!!

[Deleted User]

Proabably residual interest. You need to check the statement after you paid off what you thought was the balance, to account for the remaining interest from between the statement date and when you paid it off.

You can be repriced no more than every 6 months (unless delinquent) and should have been given the opportunity to opt out.

p00hsticks

As zx81 says, once they've started to charge interest (either because it's a cash withdrawal as in your case, or because you've gone beyond the interest free period), you need to pay off the outstanding balance in full for two consecutive months in order to fully clear the balance ,as in the first month some additional interest builds up between the date billed and when you pay.

lisyloo

have not spent a penny on it since it was paid off (incidently 6 days before payment due date)

It's probably what's called residual interest.

You see they didn't have a crystal ball and know when you are going to pay so they cannot put your final interest total down (as they don't know the number of days until you pay).
The statement only goes up to the statement date, so anything inbetween that statement date and your future payment date is unaccounted for as they can't see into the future.

The way to get round it is to pay some extra.
You should have a rough idea of the amount by now, but overpay.
Your account may temporarily be in credit until your next purchase.

If you don't want to use the card anymore then get to the credit situation then make 1 purchase then pay it off.

We can run an example if you still don't understand it.
Then you'll be done.

But you need to overpay to take account of the interest between your statement and future payment date.

eliza_Mc

Thanks, but what do you mean by repriced and opting out?

eliza_Mc

Wish the overseas customer services people had told me that in June! Thanks for help

[Deleted User]

Reprice is getting a rate change (increase or decrease). You can refuse to accept the change if you close your account - which means paying it off and not using the card anymore.

lisyloo

Thanks, but what do you mean by repriced and opting out?

I think this means your interest rate can be increased as credit cards are a variable rate (not like a loan where payments are usually fixed for the term).

You can decide NOT to accept an interest rate increase, but you have to stop using the card. Effectively you are turning down the new offer.
They they have to let you have your existing debt on the old rate, but as you've declined, you can't have any more credit.

Budner

eliza_Mc wrote: »

Hi, Can anyone out there explain why . . . paid my Barclaycard off in full in May and since then have been logging complaints with their overseas customer services because they are still charging me interest but they couldnt tell me why - have not spent a penny on it since it was paid off (incidently 6 days before payment due date) - thanks to a user on this site I found a UK number and called it today and was told it was interest payable on a cash withdrawal I made in December!!! This is apparently called cash interest???? They have also been rate jacking me for over 12 months!!! Is there no end to this thieving!!!

Hardly thieving as it would have been outlines in their Terms and Conditions