Virgin card interest

gwilli68

I have a virgin credit card. I was one day late in paying the balance off - very annoying but it happened. Anyway, I was then charged £12 late fee. Late in the month I was charged £44 interest. Both seem excessive but ok, it was my fault. However, at the end of the following month, I have again been charged £10 interest.

I have just phoned to understand why and they said it is all due to the payment being made one day late in February. He insisted this was correct but it seems crazy to me. Can they really charge 2 months interest in 2 consecutive months, because one payment was made one day late?

Tixy

Yes. Its known as trailing interest.
When you don't pay off the card the first month you lose the 54days interest free period and so are charged interest from the purchase (or last statement) up to the first statement date. The second month you pay interest from the date of the previous months statement to the date that actually paid the balance.