Debenhams Gold Card (Santander) is a SCAM

ACLMariners

Hello All,

First post, but angry so telling you how I feel. I feel this is a scam and, if you don't know this, you NEED TO KNOW IT.

I have had a Gold Card from Debenhams for around 2.5 years and I set up a direct debit just over a year ago. For the most part, I cleared off any balance before interest would accrue, but occassionally I would forget. Of course, I take full blame for that and that bit's my fault.

However, if you do not clear off the full balance of your credit card before the statement date, they apply interest on the full balance and not the part balance.

Scenario 1: Let's say you have a £200.00 balance on the first statement and you pay off the full balance of £200.00, then no interest will accrue on the second statement.

Scenario 2: Let's say you have a £200.00 balance on the first statement and you pay off part of the balance of £100.00, then you will be charged interest on on the second statement on the £200.00 and not the £100.00 balance remaining.

This interest (at 2.75% per month) on £200.00 is currently £5.49. On the £100.00 it is £2.75.

Scenario 3 (My own scenario): Let's say you have a £186.57 balance on the first statement and you pay off part of the balance of £186.46, then you will be charged interest on the second statement on the £186.57 and not the £0.11 balance remaining. The interest charged was £2.70 on a balance of 11 pence.

Phoning up to complain was just painful, but I got my £2.70 back.

ashleypride

And where is the scam exactly? This is how a credit card works. If you don't pay off in full they charge you the interest on the full amount. (The interest they are charging accrued between buying your items and paying it off - if you pay off in full then they don't charge interest during this period)

http://www.direct.gov.uk/en/YoungPeople/Money/DebtAndYou/DG_10027629

Phoning up to complain was just painful, but I got my £2.70 back.

There is nothing to complain about, they are charging interest on the terms you have agreed to. They gave you the money back out of goodwill.

whatyadoinsucka

ashleypride wrote: »

And where is the scam exactly? This is how a credit card works. If you don't pay off in full they charge you the interest on the full amount. (The interest they are charging accrued between buying your items and paying it off - if you pay off in full then they don't charge interest during this period)

http://www.direct.gov.uk/en/YoungPeople/Money/DebtAndYou/DG_10027629

Phoning up to complain was just painful, but I got my £2.70 back.

There is nothing to complain about, they are charging interest on the terms you have agreed to. They gave you the money back out of goodwill.

different credit cards work differently, you should always read the small print before signing for financial instruments..
The OP needs to pay off the balance in full, ringup or write to cancel the card and then cut up the card and move on.

Any

whatyadoinsucka wrote: »

different credit cards work differently, you should always read the small print before signing for financial instruments..
The OP needs to pay off the balance in full, ringup or write to cancel the card and then cut up the card and move on.

There might be cards that work differently, but I am yet to see one.

It is normal for the c/card company to apply interest to the full balance if you do not pay in full.

Agree, definitely people need to start reading the small print.

ashleypride

whatyadoinsucka wrote: »

different credit cards work differently,

Aside from introductory offers I haven't seen any cards that offer interest free periods without a full repayment.

whatyadoinsucka wrote: »

you should always read the small print before signing for financial instruments..

Yup.

whatyadoinsucka wrote: »

ringup or write to cancel the card and then cut up the card and move on.

As the bank gave money back in goodwill I'd say there a keeper. Oh but it's Santander so it's probably for the best

opinions4u

Interest is charged daily.

They charge you interest on the amount owing at the end of each day.

Try to think of this as an overdraft. It's not really any different - except they don't charge you interest if you clear the balance in full every month (whereas an overdraft would).

Scam is a ridiculously emotive word for this situation. While the rate of interest you mention is high, the actual way of calculating and applying that interest seems remarkably fair and reasonable.

ILW

opinions4u wrote: »

Interest is charged daily.

They charge you interest on the amount owing at the end of each day.

Try to think of this as an overdraft. It's not really any different - except they don't charge you interest if you clear the balance in full every month (whereas an overdraft would).

Scam is a ridiculously emotive word for this situation. While the rate of interest you mention is high, the actual way of calculating and applying that interest seems remarkably fair and reasonable.

Would rip-off be better, always catches my eye in a thread title.

Evilm

A polite phone call cleared that up for me when I had done the payment for about 10p lower than the balance. A polite "I'm sorry, please can you take a debit card payment to clear the underpayment and since it was a mistake could you please remove the charges?". It may have been that it was just because it was my first payment but I didn't have to complain or beg.

(From the next payment it was set to Direct Debit thank goodness!)

Fruit_and_Nut_Case

Debenhams Gold Card Summary Box

Interest free period on Purchases applies to the introductory rate period (if any). Otherwise, maximum 56 days on Purchases if you pay your balance in full and on time.

My emphasis.

What are the chances of the OP returning to thank everyone for their responses?

paulmcerlean

They have a cheek to charge interest at all. Bloody banks ripping us off.

bouncydog1

Would you lend money to somebody long term for no return? That's what a credit card is - a long term loan if the individual cannot afford to make repayments.

Far too many threads on here from individuals blaming the banks for their own money mismanagement. O.K. there are circumstances where individuals suffer a severe drop in income, but banks can be helpful if contacted straight away with a plan. What they don't like are customers that bury their heads in the sand hoping their debts will simply be written off.