Settling bill but still hit with interest - Illegal?

Pauvre_Tom

I find that, despite settling a credit card bill in full and within the deadline for payment, the company has whacked on over £70 in interest for this month. This is illegal, surely?

Noz

why? what was the interest charged for, more information required

magyar

Did you pay the previous bill on time? Some credit cards don't pile the interest on until the second month.

Bossyboots

With my card (and also some others), if you don't pay off a bill in full by the end of the month, you lose your interest free period on all the purchases on that statement and future purchases until you have paid off your account in full. Because you are earning interest from day one of a purchase until the date it is paid off, interest will end up carrying over from one month to the next. You can clear this by paying off in full two bills in succession and then regain the interest free period for month three.

jonesMUFCforever

Or where it says on the bottom of the statement the estimated interest for next month will be £x.xx - add this amount to your payment.

realaledrinker

Pauvre_Tom wrote:

I find that, despite settling a credit card bill in full and within the deadline for payment, the company has whacked on over £70 in interest for this month. This is illegal, surely?

Have you read your card's T&Cs?

The most overused and abused word on this board - 'illegal'!

magyar

realaledrinker wrote:

Have you read your card's T&Cs?

The most overused and abused word on this board - 'illegal'!

Well said!

nomoneytoday

Pauvre_Tom wrote:

I find that, despite settling a credit card bill in full and within the deadline for payment, the company has whacked on over £70 in interest for this month. This is illegal, surely?

It's not illegal to charge for a service you have used / requested.
You borrowed a sum of money from the credit card company, and they have charged interest based on their T&C...

Pauvre_Tom

Previous balance paid off in full and on time. Next statement included all of that, including a zero spend on the card, but still the company stuck on interest. It seems to me, therefore, that I should have no further interest to pay....

tom188

You paid the bill based on the previous statemented balance.
Between the time the statement is produced and the time you pay you will have continued to be charged interest, which was capitalised on the next statement.
Eg statement balance 1000 paid 01/01
paid off on 11/01
Then thats 10 days when interest is still accumulating.
When does it appear? on the next statement.

So yes what they have done is correct, else they would be providing you with an interest free window each month, which is not in their interest.

King_Of_Fools

Pauvre_Tom wrote:

Previous balance paid off in full and on time. Next statement included all of that, including a zero spend on the card, but still the company stuck on interest. It seems to me, therefore, that I should have no further interest to pay....

However, there is still the interest to pay on the balance from the time the previous bill was printed to the time it was paid off. If you pay this amount off in full and on time for this month then there will be no further interest to pay.