Is it possible for a C/C company to take too much money from you?

Nine_Lives

I had a Tesco card which i recently paid off.

Let's say my credit allowance was £2500 for this example.
Let's say that i had spent £2300 on the card.

I looked to see if there were any pending transactions - there wasn't (there shouldn't have been either as i hadn't used the card in a while).

So i send a payment of £2300 to the card to pay it all off. I wait until this clears...

Credit allowance on my online account then shows as £2500 - the full amount.

This was a few weeks ago now, maybe 3 at a guess. I close the account.


Log into my bank account today (the one which paid the C/C via D/D each month) & i find a D/D payment of £43 to the card.

I really can't figure out why this payment would've been made as i thought i'd done enough to pay the card off in full.

Have i missed something?

meer53

Another transaction which has just debited ? Check your statement.

Nine_Lives

I can't check my online statement as i can no longer log into the account.

I'm not sure when the next paper statement is due.

The sum of £43 sounds like it's a minimum payment fee (they were around this figure towards the end of my time with Tesco). I would've thought that this would be scratched though - the moment i paid the card off in full?

noh

It's trailing interest.
Interest on the amount outstanding between your previous statement date and the day your payment was received.
That is assuming you had not been clearing your balance in the preceeding months.

Tixy

It will be interest. You will always have interest the month following clearing a balance (if you haven't been paying in full every month).

sorry noh, hadn't seen your reply.

Nine_Lives

I don't quite get that though & this is the reason why...

When i asked on MSE about credit cards (am still only relatively new to them & don't understand certain areas of C/C) i was told so long as i either pay off in full (no good with stoozing method then) or minimum, then i will pay NO interest. I asked this question specifically as i didn't want to incur interest charges. I'll only pay interest if i miss payments i was told.


So off i go, using the card & paying off the minimum each month, NEVER missing a payment.

I pay off the card (early it turns out) in full & then close.

But i've STILL got to pay interest?

I don't understand it - largely because it isn't consistent with what i've previously been told on MSE

Tixy

You will always pay interest on a credit card if you only pay the mininmum - unless you are on a 0% deal.

The only way not to pay interest is to pay in full before the due date every month.

seafarers_wife

you need to pay the credit card in full each month to have no interest.

i *think* on my credit card because ive not cleared the balance, i need to clear it in full 2 months running to have no interest to pay as its something about interst being a month behind.

noh

K_P83 wrote: »

I don't quite get that though & this is the reason why...

When i asked on MSE about credit cards (am still only relatively new to them & don't understand certain areas of C/C) i was told so long as i either pay off in full (no good with stoozing method then) or minimum, then i will pay NO interest. I asked this question specifically as i didn't want to incur interest charges. I'll only pay interest if i miss payments i was told...................

That is only true if the interest rate is 0%.
Was this a 0% balance?
If so I would suggest that you did not pay the balance back before the end of the interest free period therefore incurring interest.

Tixy

K_P83 wrote: »

When i asked on MSE about credit cards (am still only relatively new to them & don't understand certain areas of C/C) i was told so long as i either pay off in full (no good with stoozing method then) or minimum, then i will pay NO interest. I asked this question specifically as i didn't want to incur interest charges. I'll only pay interest if i miss payments i was told.

..
I don't understand it - largely because it isn't consistent with what i've previously been told on MSE

Is this the thread and advice you are referring to?
https://forums.moneysavingexpert.com/discussion/2225355

If so post 2 by Clapton does say you need to pay in full each month and not use your cards for any of those specific types of transactions to not incur interest.

noh

Ok
I have now found a previous thread of yours
https://forums.moneysavingexpert.com/discussion/3314122=


It seems this was a 0% on purchases card and you did pay the balance back before the end of the 0% period.
Therefore as long as there has been no other interest bearing transactions you should have had nothing further to pay after your £2300 payment.

It may be that the £43 was taken by DD because there was not enough time to cancel it when you made your final payment.

Ask Tesco CC for an explanation.