Barclaycard Interest Rates ?....Illegal ?

Droffats

CpdButWhy wrote: »

Not necessarily all... only the largest one before March

Although still, I am not sure.

Are they supposed to

a: charge a flat-rate interest based on the original transaction size while the transaction is not fully paid off, or

b: just interest based on the remaining balance for transactions that are outside of their possible 0% period?

I`m not sure, but it looks like they are operating some sort of "compound" interest charging system, because the figures just do not add up using the 1.873% figure they show on statements...

redpete

Droffats wrote: »

I`m not sure, but it looks like they are operating some sort of "compound" interest charging system, because the figures just do not add up using the 1.873% figure they show on statements...

It won't be compounding interest that explains any difference between what you expect and what they've charged.

The only way for anyone here to check your numbers is if you give us the daily balances and relevant dates.

So on Dec 6th the balance was £12124.79 and on Dec 23rd you paid £6000.

If there were no other transactions then I would expect about £184 interest to be added on Jan 7th.

If there are no other transactions then I would call them and ask why it is different from this and not be put off until you can talk to someone about the real numbers.

Droffats

Thanks for all your advice, everybody. I eventually managed to speak to someone at their Call Centre (not in UK....) about it. Basically, they were about as helpful as a chocolate fireguard, but they DID say that they were going to send me a full breakdown of the interest charges + how they worked them out in the post.....I wait with baited breath !
It did seem though, that what their "representative" was hinting at is that they charge interest "daily"...ie. then "interest on the interest"....which, to my way of thinking, MUST be a bit "under-hand" to say the least ?......Surely this would not be in line with their advertised and printed "apr" rates ???

chattychappy

If they really did charge interest daily such that it compounded daily, then the APR would reflect this.

But I expect they meant calculated daily. It should only compound after it's been applied.