Halifax charge interest for money already repaid!!!

knightstyle

I wonder if someone can explain for me how they can do this.
Basically we are in France and now Nationwide charge for cash withdrawals etc. I got a Clarity card. Made three withdrawals, each just under £300 on 27,28,29th June. Rang my bank and got them to pay the full outstanding balance, cash and purchases, money credited to credit card account on 4th July. Just got statement and it shows £3.46 interest and an extra £3.88 interest for next month. Much more than the 0.033% they charge per day. Rang Halifax who say that interest is charged from withdrawal till statement date and beyond even though I had paid almost immediately in full!
So they charge interest for money I have repaid! And how come I will pay interest next month after paying of the full amount?
AAARRRGGGHHH

chanz4

you mentioned the word almost

knightstyle

Sorry, am I thick? Don't see that word and what does it have to do with my question?????

YorkshireBoy

knightstyle wrote: »

Sorry, am I thick? Don't see that word and what does it have to do with my question?????

You said you'd paid "almost immediately".

So you incurred (£3.46) interest on the balance during the period between finishing spending/withdrawing cash and your payment actually crediting your account.

Then, because you didn't pay the statement total in full you lost your up to 56 days interest free and will be hit with some residual interest the following month. Of course the £3.88 is an estimate and assumes you make only the minimum payment this time and you make it on the payment due date. You won't be doing that (will you?) so your 'actual' interest next month should be less.

Clear?

erdd2

knightstyle wrote: »

I wonder if someone can explain for me how they can do this.

They appear to be staffed by incompetents that do not address the customer issue preffering their own agenda which is for the most part, get the customer off the phone :mad:

Better to complain in writing but dont expect a sensible or logical response.

Azrael_1701

erdd2 wrote: »

They appear to be staffed by incompetents that do not address the customer issue preffering their own agenda which is for the most part, get the customer off the phone :mad:

Better to complain in writing but dont expect a sensible or logical response.

Excuse me, but would you care to explain how all of the consultants are 'incompetent'. I have worked in that position for the better part of three years, having to deal with peoples' insults and general slander on a daily basis, and I take great offence to your insinuation.

knightstyle

YorkshireBoy , Sorry but the money was repaid in full after just a few days. how does 0.033% per day, 12.9%PA come to that much on just under £900 for less than a week? Even the call centre admitted they are charging me interest on the full amount for several weeks AFTER I had repaid all the money. Surely that is just plain wrong??? Looked for the terms and conditions on line but could only get a brief version. Mine are in UK so please explain this to me in simple terms?
Oh and the statement is paid in full each month by DD yet they still want interest next month????

opinions4u

Made three withdrawals, each just under £300 on 27,28,29th June. Rang my bank and got them to pay the full outstanding balance, cash and purchases, money credited to credit card account on 4th July. Just got statement and it shows £3.46

So, on average, you owed £900 for 7 days. My very swift estimate of interest would be £2.00 to £2.50, but I've not seen your full statement and don't know what other transactions show on it. You don't say how much you expected to pay either.

Oh and the statement is paid in full each month by DD yet they still want interest next month????

Residual interest on the cash advances may trigger this, although I'm not convinced it should. More likely they are telling you the estimated interest if you don't pay in full, as they do every month.

If you complain you'll probably get your interest back and a bit more. While I'd suggest accepting this, perhaps getting them to explain more clearly why they've charged what they've charged is something to hold out for.

Likelihood is that they're right, but it would be nice to understand why.

Are you sure you rate is 12.9% and not 21.9%? That would increase my estimate to around the amount you've been charged.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

knightstyle

Thanks for working that out, yes my latest statement states 12.92%pa for cash advances. These are the first cash advances I have made on this card and I have never paid interest as always pay in full, very MSE.
So still wondering how they can charge £3.46 for June and £3.88 for July even the call centre admit they charge interest for cash advances for weeks after the money is repaid, can they really do this?

opinions4u

knightstyle wrote: »

So still wondering how they can charge £3.46 for June and £3.88 for July

Have they actually charged interest for July? How has this £3.88 been positioned with you? Estimated interest for next month is based on a number of assumptions - one of which is assuming you don't clear the balance in full.

even the call centre admit they charge interest for cash advances for weeks after the money is repaid, can they really do this?

They could do it if the T&Cs allowed them to. But they charge interest daily, so the reason given here is a bad guess rather than a fact.

One other thought: is the date of the transactions 3 days earlier than the date they've been accounted for on your statement?

Was the money sent to your credit card on 4th July and received later than that date?

jalexa

knightstyle wrote: »

So still wondering how they can charge £3.46 for June and £3.88 for July even the call centre admit they charge interest for cash advances for weeks after the money is repaid, can they really do this?

I think you need to look at the Terms and Conditions. Easily found online, or here..

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

What you are technically doing is crediting the account before the transactions appear on a statement, effectively overpaying the previous statement. Not "normally" allowed except in your case OK because there are subsequent transactions (which would normally first appear on the next statement).

I think the TandCs touch on that but it is not easily followed. It does not surprise me the call centre staff can't follow either.