Credit Card Interest Alert!

redparaman

Rupert_Bear wrote: »

Pleased for you that the interest charges were refunded but no one in any company has the right to go against company policy.

It is not treating customers equally.

As with most call centres the response was scripted and recorded so I doubt the operator was not following normal practice. My whole point is that 2k was paid before payment due date and before charges applied. It was the fact that the total interest was charged despite the majority of the outstanding amount being paid! When are all customers treated equally?

Hax

redparaman wrote: »

It was the fact that the total interest was charged despite the majority of the outstanding amount being paid! When are all customers treated equally?

I think you'll find that the Terms and Conditions state that interest is charged from the date the transaction was made.

It will also state that interest is only waived if the balance is paid in full.

You didn't pay in full, therefore, the interest wasn't waived and got charged on the full amount up until you paid the £2000 at which point the remainder of the balance will have continued to accrue interest.

redpete

You think of it as being penalised by paying interest on money that you have paid within the date requested. How about considering all the other months where you have benefited from them waiving the interest on money you have borrowed because you did pay on or before the required date?

What will happen next month when you also get charged interest because you haven't had 2 consecutive months of paying before the due date? Will they refund you that as well?

Fiddlestick

redparaman wrote: »

My whole point is that 2k was paid before payment due date and before charges applied. It was the fact that the total interest was charged despite the majority of the outstanding amount being paid! When are all customers treated equally?

Interest accrues daily but is only *applied* at the statement date.

chattychappy

The T+Cs set out how charges are calculated and applied. Maybe you don't like the method, but redparaman, - do you now see that the interest was correctly charged?

danielwhitehouse

Holy cow, good spot. The devil is indeed in the detail! I got offered a credit card the other day that was 40%! Can you believe that? Sorry, what's the base rate again? not on..

[Deleted User]

Why isn't it on?

Hax

Deleted_User wrote: »

Why isn't it on?

My thoughts too - the interest rate reflects the applicants creditworthiness. If it's high then you're too much of a risk for that particular lender - maybe you should check your credit report if you think the rate is "bad" - you may have bad history lurking.

Base rate has little (if anything!) to do with (most) credit rates - mortgages seem to be the exception in that they base their rates on base rate + X%.

redparaman

redpete wrote: »

You think of it as being penalised by paying interest on money that you have paid within the date requested. How about considering all the other months where you have benefited from them waiving the interest on money you have borrowed because you did pay on or before the required date?

What will happen next month when you also get charged interest because you haven't had 2 consecutive months of paying before the due date? Will they refund you that as well?

That wont apply as there is a 0 balance outstanding as its been paid off before the payment date due!

Malky

What other posters have said alright is correct. Perhaps you should have paid the whole £2081 rather than part of.