Halifax interest charging

david4sarah

Last month I cleared off my Halifax Clarity credit card (I paid off about £300 before the due date). I was happy as this meant it was a zero balance and I could cancel the card.
However, today I received a statement through the post saying that I had interest of about £2.40.
How can they charge me interest on a zero balance?
If I pay off other cards I have, I don't get charged any further interest, so why do Halifax do it?

Anyone out there had any experience with this as I am loathed to pay the interest to Halifax when I cleared it all off.

Thanks
David

jonesMUFCforever

The interest accrued from the date of your statement until you paid.
Was your account fully cleared for 2 previous months?

YorkshireBoy

david4sarah wrote: »

How can they charge me interest on a zero balance?

It's residual interest (because you didn't pay the last statement in full by the due date), and is common to all cards (so you're mistaken that your other cards haven't charged it previously).

Condition 3.5 (and, loosely, condition 3.6) of your T&Cs will explain further...

http://www.halifax.co.uk/creditcards/conditions_7728.asp

david4sarah

So I get a statement that says I owe £300 and it is due by 31/12/10. I pay £300 before Christmas and then I am charged interest?
Surely if you get a bill and pay in full, you don't get another bill for a residual amount.

Jammi

david4sarah wrote: »

So I get a statement that says I owe £300 and it is due by 31/12/10. I pay £300 before Christmas and then I am charged interest?
Surely if you get a bill and pay in full, you don't get another bill for a residual amount.

What your statement did not show- and could not have shown- is the interest charged on your transactions, as interest accrues on a daily basis. As previous posters have pointed out, you dont get charged interest on purchases provided you pay the balance in full by the due date, otherwise interest is charged from the date of the transaction. You also don't get interest free periods on cash withdrawals and balance transfers. If you had paid previous bills in full and made no cash withdrawals/balance transfers you would not have been charged interest.

Basil1234

quick question david i have halifax cc but i have if i get made unemployed protection on it which i pay money for not thinking of that at all? and if not have you phoned them up for explaining at all would seem to be the logical thing to do and ask for no?

jonesMUFCforever

Basil1234 wrote: »

quick question david i have halifax cc but i have if i get made unemployed protection on it which i pay money for not thinking of that at all? and if not have you phoned them up for explaining at all would seem to be the logical thing to do and ask for no?

Pardon? I have no idea what your point is here.

fozmcfc

The key question you haven't answered is "Was your account fully cleared for 2 previous months?"

If not say your statement day was 5th December and you pay it off by the 23rd, you will be charged interest from 5th December until the 23rd December.

For instance:

£500 purchase made in October,

November statement arrives owe £500

Pay off £200 by the due date in November

Opening balance on my statement date 5th December is £300

That £300 is then accuring interest until I pay it say on the 23rd December, so my January statement will have a few pounds interest accured between the 5th and 23rd December.