another credit card con

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I have a harvy nichols card and allways pay it of in full exept for last month as the statement arrived late and i had to pay it the same day to avoid being late.I payed of £1486 off a balance of £1534 leaving a small ballance of £48.The statement arrived this month with an interest of £29.72 on it.When i rang up to find out why it was so high they told me that they charge interest on the full £1534 even if you pay nearly all of the money due.This is a new one to me and would like to know if this is legal as they are charging interest on money that has already been paid.Needles to say they are just quoteing me company policy and stonewalling me but its the last penny they will get from me.
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  • nad_
    nad_ Posts: 489 Forumite
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    I have a harvy nichols card and allways pay it of in full exept for last month as the statement arrived late and i had to pay it the same day to avoid being late.I payed of £1486 off a balance of £1534 leaving a small ballance of £48.The statement arrived this month with an interest of £29.72 on it.When i rang up to find out why it was so high they told me that they charge interest on the full £1534 even if you pay nearly all of the money due.This is a new one to me and would like to know if this is legal as they are charging interest on money that has already been paid.Needles to say they are just quoteing me company policy and stonewalling me but its the last penny they will get from me.

    i think if this never happened to you before then as a good will gesture they should take back the interest,and if i remember they do it only once every year(i think every card do as i had same problem with AMEX and they sort it out for me)give it a try
  • Thomas_Crown
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    You must pay off the whole of the balance by the due date or you pay interest on the whole balance shown on the statement. This is standard across all credit cards & has been for the last 28 years (possibly longer) as far as I am aware. You won't gain anything by changing to a different credit card provider. Perhaps you should have read the T&Cs when you received your card.
  • bengal-stripe
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    I payed of £1486 off a balance of £1534 leaving a small ballance of £48.

    You pay interest for every day the balance of £1534 is outstanding, once the payment is credited, you pay interest for the new outstanding balance, in this case £48.

    Your payment arrived some 20 or so days after the statement date. For these 20 days you pay interest on the entire amount outstanding.

    Nothing new about that. All credit cards work like that.
  • INT1
    INT1 Posts: 1,257 Forumite
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    Not really a con but just bad luck they won't give you any good will.

    i would set up a Direct Debit for the full amount as it appears you don't like to pay interest.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    edited 10 November 2010 at 12:01PM
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    This is a new one to me and would like to know if this is legal as they are charging interest on money that has already been paid.Needles to say they are just quoteing me company policy and stonewalling me but its the last penny they will get from me.

    I think you will find they are quoting the T+Cs that you signed up to. All credit cards work in the same way. It is completely legal.

    They aren't charging you interest on money that has already been paid. They are charging you interest between when you made the purchases and when payment reached them.

    Maybe you think it's the last penny they will get from you - but it's very likely you will have further interest to pay on your next couple of statements.

    I really don't know why you seem so upset. Sure it's come as a disappointment to you - but surely you can now see that it was your mistake? Will you now change the thread title so it doesn't say "another credit card con"?
  • nzseries1
    nzseries1 Posts: 2,240 Forumite
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    Yes, every single credit card that I'm aware of works in this way. Pay off the entire balance before the due date, and you won't be charge interest. 1p less, and you're charged interest on everything until it's paid off.
    You're spelling is effecting me so much. Im trying not to be phased by it but your all making me loose my mind on mass!! My head is loosing it's hair. I'm going to take myself off the electoral role like I should of done ages ago and move to the Caribean. I already brought my plane ticket, all be it a refundable 1.
  • peterbaker
    peterbaker Posts: 3,083 Forumite
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    Unlike the Ts&Cs apologists, I have every sympathy with the OP.

    One thing we have not had for the last 28 years is such outrageous interest rates for a start, and the other thing we have not had is the take it or leave it customer services attitude that immediately resorts to blaming the customer for not reading the Ts&Cs which no way are the same as they were 28 years ago because they change several times a year!

    It would not have hurt the card company as a goodwill gesture to refund that interest due to you being completely wrongfooted by the statement ariving late in the post.

    It is a sign of the times i.e. greedy uncaring card issuers that it seems not to have been offered.

    Ring them up again and put on your best "I wonder if you can help me?" voice and conveniently leave out the fact you called before.

    If they say "We have already told you that this is correct" then grit your teeth and smile and say "Yes but forgive me but I don't think your colleague quite understood" ... and then relate the terribly unlucky story about always paying in full and on time - you can see that from my record, can't you? - and then most inexplicably the statement arrived very late and left me no time at all to pay it before the deadline. You can see that can't you? As I spend most of my income with you, you can see exactly what has happened and I would be most grateful if you could put it right for me....

    If the colleague does not the offer to do so, then again in your most polite voice you say how terribly unsettling it is and you wonder if you might have a word with the supervisor to explain how this £30 additional charge really is rather vexing for a loyal customer like you ....

    Still biting your lip? Don't make it bleed now :p

    Anyway, best of luck with that ... hopefully another call without questioning legality and convincing the person that you are their nicest customer might get your thirty quid back.

    If you succeed, then once you can see the refund, you then have the option of the third call where you tell them where they can now stick your card :D
  • chattychappy
    chattychappy Posts: 7,302 Forumite
    edited 10 November 2010 at 5:39PM
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    But we're not talking about some minor catch in T+Cs. We're talking about the fundamental charging structure and this is pretty clear not just from the T+Cs. Eg in the summary box you are quoted interest rates for purchases. You are told that no interest will be charged if the balance is paid off in full.

    This aspect of the T+Cs doesn't change every 5 minutes. The only change I can remember in the years of having credit cards is that in the past some of them charged interest from statement date, not date of transaction. So even in this case the OP would still have faced an interest charge.

    Of course people in call centres should be polite etc - but why should they cave in just because someone is upset. And of course - assuming they don't cave in, they have to justify their position and this can only be by reference to what has been agreed and their policy on applying discretion.

    Perhaps commercially it would have been worthwhile making a goodwill gesture. We have no idea of the attitude of the OP on the phone, but he has titled this thread "another credit card con" and talked of not giving them another penny. It seems his mind is pretty made up - it's all a con. Well if he thinks that way, the CC company will probably think they are better off without him.

    We certainly know from other threads that CC companies often do make goodwill gestures. Perhaps if he has the approach you suggest - then it might work. But I think the OP does needs to adopt more than just the veneer of change, for his own sake if nothing else.
  • peterbaker
    peterbaker Posts: 3,083 Forumite
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    Financial Services should not be a game of snakes and ladders. It should reflect the finest styles of business and quality of business relationships. Unfortunately, ever since financial services companies decided to use lo cost call centres as the sharp end of their business, and with that headed further and further east (last I heard it was the Philippines), such sentiments have gone well and truly west and out of the door. Terms and conditions used to be manageable and worth reading. Now they are almost conniving and are full of traps for the unwary whether you have read them or not.

    So if you don't mind, this 35 year plus financial services customer ventures to suggest that the OP's thread title is probably more accurate than not.

    In particular I'd like to know why was the statement delivered late? How many more thousand from the same card issuer were in fact sent out late?

    What is this thing which isn't a veneer that the OP needs to adopt exactly, chattychappy? Surely you would not be suggesting that he might turn himself into another of the 'better if we didn't baa too much for want of attracting too much attention to ourselves' sheep that get herded from one hard place to the next rock at the whims of wolves that inhabit this ever more uncaring branch of commerce?

    Or are you perhaps suggesting the OP might try hard to be saintly in the face of it all because the call centre staff knoweth not what they do, but they knoweth their supervisor will telleth thee exactly the same as they themselves just remindeth thee straight from the mouth of thine Ts&Cs and that the company tryeth hard and doth treat all under their care the same without favour or prejudice to one nor the other, and to do any different would be most unfair on others of the flock who strayeth not from the pastures bounded by the Ts&Cs, and lo, suggestion of goodwill unto thine own section of mankind i.e. yours truly, suitably refunded pounds, no-one else's for the use of, might even risketh an abomination unto the Masters of the Universe ?

    Right ...
  • mjm3346
    mjm3346 Posts: 46,943 Forumite
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    Not a con, perfectly legal and nothing new.

    The full amount outstanding was not paid so the date the statement arrived does not make much of a difference as there would still have been interest charges.
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