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B'card transfer fee question.
Steve1963
Posts: 44 Forumite
in Credit cards
Just got B'card statement. Recently cleared the balance and then transferred balance from another card to get a lifetime low rate. There was a 2.5% fee which I was fully aware of. The statement today shows the interest on the transfer but also interest on a standard balance. Now, I know the card was clear so what is this standard balance? Could it be that B'card have counted the transfer fee as separate transaction and are charging me interest at their standard rate? This will mean I am stuck with that until the transfer is paid off. I calculate that will add over £100 in interest by the time I pay it off.
Am I right? I can't contact B'card because the card is in my wifes name and she is away for a few days. When we do contact them, and if the situation is as I fear, is there anything I can do about it? Your thoughts and advice would be very welcome, as I am simmering with suppressed rage at the moment if B'card have done this.
Thanks
Steve
Am I right? I can't contact B'card because the card is in my wifes name and she is away for a few days. When we do contact them, and if the situation is as I fear, is there anything I can do about it? Your thoughts and advice would be very welcome, as I am simmering with suppressed rage at the moment if B'card have done this.
Thanks
Steve
0
Comments
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Yes you are being charged the standard interest rate on the fee. I had a balance transfer with them, was charged 6.9% for the balance transfer but was being charged 14.9% for the balance transfer fee of 2.5%. The balance transfer is also cleared off first, so you'll continue to pay the standard APR on the fee until your transfer balance is cleared.0
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Thanks for that. So is there any way to get around this? Seems very underhand and devious to me (credit card companies being devious and underhand-whatever next?). Between the fee and the interest on it is it really worth bothering with low rates? Or is this just B'card? I haven't noticed additional interest on the Lloyds card we also used to get a low interest rate.
Steve0 -
When you do a balance transfer work out how much the balance transfer fee is and credit this to the card first ie put the card in credit.
This should cancel any interest charge.0 -
I think you'll still find even by putting the account in credit, they may use that credit to clear some amount off your balance transfer 1st & not the balance transfer fee. Its all down to the way they distribute repayments across the whole balance, starting off with promotional rates 1st, standard rates next, followed finally by cash advance rates which are the highest.0
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So basically I've been stiffed by B'card :mad: I did have a credit balance when I did the transfer. This is definately not fair. I will contact them and ask if the standard balance can be paid first (nothing to lose by trying I guess). I'll let you know how I get on.
Steve0
This discussion has been closed.
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