Morgan Stanley Credit Card Interest Is Charged On The Full Balance

cjw

Hi Everyone,

I thought I would inform you about how Morgan Stanley are calculating their interest on their credit cards, which I think no will realise. Last Christmas time my father got a Morgan Stanley credit card, as they were offering cash back on purchases. Can I also point out that my father always clears his bill each month, as he won’t pay the high interest rates. In July his bill came in and he saw 3 transactions that weren’t his, so he reported them to Morgan Stanley and they told him they would put the 3 transactions to 1 while they investigate these transactions. In the mean time my father paid what he owed to Morgan Stanley.

The next month he received his next bill and the 3 transactions hadn’t been taken off or put to one side, plus they added interest on. He phoned Morgan Stanley and just went through them, as he doesn’t give banks a second chance. They did remove the 3 transactions, which cancelled out the interest.

The best bit is to come. Something about the interest wasn’t adding up in my fathers head, because if the transactions totalled to £350 the interest charged was about £36. So as you can see the percentage was over 10% a month. My father phoned Morgan Stanley to enquire about their interest rates, but the person on the other end of the phone couldn’t understand his question and requested him to write in. This is what he did and received a reply. Basically Morgan Stanley start charging interest on the total amount that was on the first month and NOT on the remaining balance that you haven’t paid off. So what ever my father had spent in July Morgan Stanley had charged interest on the total amount.

My father is using Morgan Stanley credit just to get enough cash back so they will send him a cheque, after that he is closing his account as he doesn’t like being conned.

Please let the whole world know about this trick and maybe you can check this out with other credit card companies.

Regards,

CLAPTON

yes what you describe is true of all credit cards and is usually clearly stated in their terms and conditions.

the 'interest free ' only applies if you pay in full each month, if you dont even if by a very small amount then you are charged interest from the day you spend the money until you pay it off...

.

King_Of_Fools

I do not know of any credit card that is any different - you only get the interest free period if the whole balance is paid off in full by the due date.

So there is very little point in your father changing credit cards as they all do this!