"cash" Interest payments on credit card fees - is this fair?

fathippy

My card provider - who I have been with for nearly 20 years now - has started to charge me "cash interest" payments on fees that they charge. What makes this all the more strange is that every time I ring up to query, they immediately remove them without even talking about it. This strikes me as an opportunistic attempt to nick some money in the hope that people dont notice.

I am one of those people who always pay off in full every month, so I never expect to see any interest. This is why it annoys me so much. The latest example is the yearly fee - they have put an entry in for the yearly fee together with an interest charge for a "cash withdrawal". Other examples have been the 3% fee for balance transfers - they have charged "cash interest" on that also.

Is this legal, or can I stop them from doing it going forward. It is getting to be a pain ringing in every time for them to tell me "dont worry we have deleted it" ?

[Deleted User]

It's legal if that's how the card operates, not if it doesn't. You need to clarify with them whether these charges are in line with the t&cs, or a system error that they need to fix. I'd suspect it's a system error, unless you're with one of the more shonky lenders. Or Santander.

Fruit_and_Nut_Case

fathippy wrote: »

interest charge for a "cash withdrawal"

Are you saying that you didn't make this cash withdrawal? AFAIK all CCs charge interest on cash withdrawals from the day that they are made. The also charge a "fee" for the privilege of making the withdrawal. Sorry if I misunderstand.

Paul_Herring

fathippy wrote: »

My card provider - who I have been with for nearly 20 years now[...]

I suggest you find another card provider if they're annoying you like this. You've been with them far too long anyway.

Other examples have been the 3% fee for balance transfers - they have charged "cash interest" on that also.

That one's quite common among cards however.

Voyager2002

Fruit_and_Nut_Case wrote: »

Are you saying that you didn't make this cash withdrawal? AFAIK all CCs charge interest on cash withdrawals from the day that they are made. The also charge a "fee" for the privilege of making the withdrawal. Sorry if I misunderstand.

No, he is saying that there are various fees (annual charge, fees for balance transfer) that he understands and accepts, but the card issuer treats these as cash advances and so they attract interest from the day on which they appear on his statement. It does sound like a system error, but it is curious that these mistakes are usually to the disadvantage of the customer.

fathippy

Fruit_and_Nut_Case wrote: »

Are you saying that you didn't make this cash withdrawal? AFAIK all CCs charge interest on cash withdrawals from the day that they are made. The also charge a "fee" for the privilege of making the withdrawal. Sorry if I misunderstand.

I may have not been clear enough on the OP. I have never done a cash withdrawal or not paid the balance off. What they are charging is the equivalent of the "cash withdrawal" interest on any charge that they themselves make on the account.

For example there is an annual charge, so they will debit that from the account and then treat that debit as if it were a "cash transaction". This seems outrageous.