Payment Allocation

sh2011

I have recently taken advantage of a 0% offer to consolidate my credit card balances onto one HSBC card.

I thought I read in the news somewhere that the rules about payment allocation have changed and credit card providers have to use payments to clear debts which attract a higher rate of interest (eg. Cash Advances) first.

My latest HSBC credit card statement has this under its Payment Allocation section:

"Your payment is allocated to promotional rate Balance Transfers, then purchases and standard rate Balance Transfers and lastly to Cash Advances"

I'm taking this to mean that my payments will be clearing my Promotional Balance transfer balance (at 0%) instead of the rest of my balance at my standard APR.

Can anyone advise me on my rights and the rules governing this?

Basically, how can I fight back?!

Thank you for your time.

[Deleted User]

Sounds like they're using old statement stationery. Phone up and check, but it will have changed by now. Possibly as late as late Jan though.

dazza.mk

Accoridng to the article HSBC changed in December

http://www.moneysavingexpert.com/news/cards/2011/01/credit-card-payment-trap-ends

sh2011

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Thanks

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tsstss7

I recently did a 0% BT and then realised that under the new scheme my 0% amount won't start to get paid off at all (as i have other monies owed on cards) until the higher rate kicks in which effectively means I could still be paying the higher rate on that amount for a fairly long period of time. As a consequence I am having to put aside money to pay off this bt when the 0% ends...not one of my finest moments. will be sticking to long term rates now ...way too complicated.