CC Interest Scam

pr00se

I never realised how difficult it was to clear interest on a credit card. I always pay my Capital One balance off in full. However recently I accidentally withdrew cash on it. Consequently there was an interest charge. I don't complain about that, it was my mistake; but it has become almost impossible to clear the interest. Despite numerous calls and e-mails to Capital One (and sending in extra payments and not using the card as they have advised), they continue to contrive to charge me interest. Frankly this is sharp practice. In my case the interest is trivial, but I can easily see how people can be caught in a cycle of ever increasing interest (at the ridiculous rate of 23.29%) on cash withdrawals. The practice should be investigated by the financial ombudsman.

izools

You were aware of the terms when you made the withdrawal.

If you don't like it then get a settlement figure, close the account, and go elsewhere.

No scam has occurred.

_Andy_

As usual, a thread with 'scam' or 'rip off' in the title with no merit.

duggie1982

The people that complain about making cash advance's. What do you think is going to happen

opinions4u

pr00se wrote: »

I never realised how difficult it was to clear interest on a credit card. I always pay my Capital One balance off in full. However recently I accidentally withdrew cash on it.

At this stage, you have to hold your hands up and say "I made a mistake, it's my fault".

Consequently there was an interest charge. I don't complain about that, it was my mistake; but it has become almost impossible to clear the interest. Despite numerous calls and e-mails to Capital One (and sending in extra payments and not using the card as they have advised), they continue to contrive to charge me interest.

You are charged interest as soon as you make the cash advance. When a statement is issued, you continue to be charged interest on it. When you send a payment, interest continues to accrue until the payment is received. If the payment does not include the accrued interest, a residual balance of interest will remain on the account and will, itself, accrue further interest.

Try to compare this debt to an overdraft. If you spent £1,000 on 1st September and, with interest, owed £1,015 on 1st October, and paid £1,015 off the debt on the 10th of October, would you expect that 10 days of interest to be waived?

Frankly this is sharp practice.

Frankly it isn't. Frankly, it suggests that you simply haven't thought through logically how interest works, because you've pre-wired yourself to believing "clear in full, no interest". As soon as you took cash, that pre-wired thought of yours became flawed.

You needed to overpay the full balance by more than you did AND stop using the card for a period of time.

The practice should be investigated by the financial ombudsman.

Well it's an option you have. Exhaust you company's complaints procedures and then take it to the FOS.

The problem you have is that you're not the first to misunderstand how interest on cash advances works. And when previous complaints have reached the FOS the rulings have gone the way of the card company.

If you can produce emails that have told you what to do, and can show that you followed them to the letter within appropriate timescales, you may be able to convince the FOS that you've been hard done to. Without that, you don't have a case.

danothy

Am I right in thinking that if you pay off the balance in full two months consecutively then you will clear the balance or do cash advances work differently?

CLAPTON

danothy wrote: »

Am I right in thinking that if you pay off the balance in full two months consecutively then you will clear the balance or do cash advances work differently?

you are correct
if one pays in full for two consecutive months then there is no further interest

chattychappy

Unhelpful poll anyway. You cannot answer by accepting the OP's premise that it is a scam.

OP, have you stopped beating your wife yet?