Lloyds Credit Card Wrong Interest / Error

spiderhoof_2

I have a Lloyds platinum credit card with the balance reducing month on month. However from Jan to Feb 2011 the interest was up higher while the balance was lower. I received no notice of a rate change and anyway the rate was fixed for 6 months from December 2010 as I did a balance transfer onto the card at that time.

I wrote in with a complaint, recorded delivery, about 9 weeks ago. So far I've heard nothing. What should I do now?

Also does anyone know what the fixed rate for balance transfers being offered at that time was as I'm sure it was supposed to be 0.4% apr but they charge a lot more than that.

Cheers - Spiderhoof

[Deleted User]

You need to check what rate you're being charged - look at your statements. If you're still uncertain, then calculate the interest, remembering that there's different number of days in different months, which is why interest can be higher some months.

jonesMUFCforever

I have not heard of a 0.4% balance transfer rate - 0% with interest being charged on the balance transfer yes - or 6.9%

opinions4u

spiderhoof wrote: »

I have a Lloyds platinum credit card with the balance reducing month on month. However from Jan to Feb 2011 the interest was up higher while the balance was lower.

What were the statement periods (exact dates)? How much were the balances (when the statements were issued for now, including the previous 2, but may need transactions to reconcile numbers completely)? What is the actual interest charged for each period?

I received no notice of a rate change and anyway the rate was fixed for 6 months from December 2010 as I did a balance transfer onto the card at that time.

Do your statements tell you what rate is being charged? Tell us - even if it's only the monthly rate.

I wrote in with a complaint, recorded delivery, about 9 weeks ago. So far I've heard nothing. What should I do now?

Ask the post office for proof of delivery. What address did you send it to?

Also does anyone know what the fixed rate for balance transfers being offered at that time was as I'm sure it was supposed to be 0.4% apr but they charge a lot more than that.

Different cards, different rates, different times. Ring them to find out.

More detail will make the guessing game easier!

Fruit_and_Nut_Case

spiderhoof wrote: »

However from Jan to Feb 2011 the interest was up higher while the balance was lower.

Have you taken into account that January and March had 31 days and February only 28? That's approximately 10% difference. Interest is calculated daily.

spiderhoof_2

Hi Guys thank you very much for your help.

The balance transfer was actually done on 8-Sep-2010. The statement date is 19 Sep and says 1.240% for purchases, 2.075% for cash at the head of the statement. Then in the statements lines it says:-

Balance Transfer 08/09/10
Outstanding Balance £5638.08
Monthly Interest Rate 0.403% 8.51

A similar three lines appear in October and November but are then missing from December onwards. December statement head says monthly rate of interest is 0.482% for purchases and 0.482% for cash. The balance brought into December is 6963.79 and 0.482% of that is about £5 less than the interest they have charged (£39.03)? I would think that even with days in the month adjustments this figure seems wrong. For Jan & Feb the statement head states 5.9% pa variable. For Mar & May it says 27.90% pa for cash and 15.90% other and June says 5.9% pa again. There is no April statment and the next statement is dated 2-May. From March onwards they began adding a £12 late payment fee. I think this is because I joined cccs in December so their payments started arriving on the 25th - late as far as they're concerned. In May I got £126 interest but I think that also covers April as the statement date was changed to get rid of the £12 late fee.

The balance going into Jan was £7002.82 with interest of 32.17 going into Feb it was 7034.99 with interest of 34.04 so I suppose the balance didnt actually fall - sorry I got that wrong - effectively no payment was made in that month as a consequence of joining cccs as they hold money until 25th of month.

Basically they made money from the balance transfer fees and then they've gotten rid of the balance transfer interest rate because I joined cccs and decided to add late payment fees and bump the interest rate up as well. They've then ignored my letter of complaint. It doesn't seem to me that they've been 'sympathetic' as the lending code requires. I have proof of delivery of my complaint on 11-Apr from post office web site. It went to..

Lloyds TSB
Card Services, Customer Accounts Dept.
Brighton
BN1 4BE

Since they've ignored my complaint what should my next step be? Can I just make a small claims court demand for the return of balance transfer fees or interest citing non-compliance with the lending code? I've phoned them plenty of times and I will phone them again if it will help but I'm sure they won't do anything unless I have another course of action up my sleeve so I can tell them what's coming if they dont play fair.

Thank for all your help! Cheers - Rich

opinions4u

A lot of words there.

It sounds like you paid late so they removed the low rate deal, as per terms and conditions.