Halifax charge interest for money already repaid!!!

knightstyle

Thanks both of you but I am still no where nearer understanding. Cash withdrawn 27, 28, 29th June, rang Halifax on 30th to get outstanding balance and transferred full amount from my current account, money left 1st July and credited to Halifax credit card account on 4th July.
Yes, the £3.88 for next month is estimated but why would there be any interest???
Plus how do they get to £3.46 for June? I just don't get it.
Thanks for the terms which clearly state that any payments go straight to the highest interest outstanding money but do not mention charging after the money has been repaid.

jalexa

knightstyle wrote: »

...Yes, the £3.88 for next month is estimated but why would there be any interest???

Are you saying there are no purchase transactions after 4 July? (sorry if u already said)

pauljoecoe

I am using the /clarity card in this way at the moment. My son is using the card to withdraw cash in India. I log on to my account regulary and if I see a cash withdrawal I make a payment onto my card. Like you I hope that the interest charge will be minimal. I watch with interest! (No pun intended)

knightstyle

jalexa, Thanks for looking, yes there are lots but these are interest free as paid off in full by DD at the end of statement period.

knightstyle

pauljoecoe, Can you keep me informed please? Is there any way you could go to a branch and try to find out what they charge as the T&Cs are not clear.

jalexa

knightstyle wrote: »

jalexa, Thanks for looking, yes there are lots but these are interest free as paid off in full by DD at the end of statement period.

But that is the explanation for the "estimated" interest. Only a minimum payment is "assumed". (Statement does say if you look)

If you clear the statement balance by the due date there should be no actual interest. (in practice there may be a few pence residual (is that what it is called?) interest from the previous month's interest.

opinions4u

What date was your statement issued?

The annual rate is 12.20% before compounding, so dividing by 365 it gets a figure of 0.0034% a day (give or take). For me, assuming each withdrawal was exactly £300, the charges should be 10p per withdrawal per day. 80p on the first one plus 70p on the second one plus 60p on the third one = £2.10.

My best guess is that you also had a balance of around £400 - £500 of purchases on the card at the same time. Your payments against the cash advance have been applied pro-rata between cash balance and purchase balance. But this guess seems at odds with the T&Cs. So I'm still not totally convinced I'm right.

2.2 We use any payments you make to pay off transactions that appear on your statements starting with those on which we charge interest at the highest rate. We will then pay off transactions on which we charge interest at the next highest rate and so on down to the lowest rate of interest. If the payment is not enough to pay off all transactions at a particular interest rate, we will pay off transactions charged at that interest rate in the order:- cash advances, cheques, purchases, balance transfers and default sums. If you pay more than the amount due shown on your statement, we will use any remaining payment to pay off transactions that have not yet appeared on your statement in the same order as those that do appear on your statement. In this condition, "transaction" includes the amount of the purchase, cash advance, cheque, default sum or balance transfer plus any interest, fees or insurance payment charged as a result of that transaction.

On the plus side, you're at worst £1.38 out of pocket.

knightstyle

Thanks opinions4u that is what I roughly worked out, it just worries me that I have been charged £1.38 or so plus potentially £3.88 for no reason, I am always careful with the pennies, having been through really hard times in the past. Will post when Halifax get back and explain how they worked out their interest.
Out of interest for you all the first payment that month on 4th July to cover cash and purchases was £1,540 and the end period by DD on 18th July was £900.42.
We do all our regular spending here in France with this card, the cash is transferred to our French bank account for regular bills, tax, insurance, house tax etc. Don't get me going about French banks, how would you like to pay over 9€ a month for your debit card?
Anyway this system worked well for us for many years with the Nationwide but now use Halifax to try to avoid charges.

zagfles

For a start take no notice whatsoever of the "estimated interest" for next month - I get these every month on cards which I pay in full by DD and have never paid a penny in interest on. It's nanny state rubbish which the card companies are obliged to give and it's based on a number of assumptions which almost certainly won't apply in your case.

The actual interest charged is the only relevant thing - they seem to have charged you about 10-11 days interest, though it appears you should only have been charged 6 days. When you say you paid the "full outstanding balance" did that include any balance outstanding from the previous statement (eg which was waiting to be collected by DD?)

zagfles

knightstyle wrote: »

Thanks opinions4u that is what I roughly worked out, it just worries me that I have been charged £1.38 or so plus potentially £3.88 for no reason, I am always careful with the pennies, having been through really hard times in the past. Will post when Halifax get back and explain how they worked out their interest.
Out of interest for you all the first payment that month on 4th July to cover cash and purchases was £1,540 and the end period by DD on 18th July was £900.42.

So did your statement on about 23 June have a balance of about £900? Did the £1540 payment just cover spending and cash withdrawals since the statement?

If so that would explain it. Your £1540 payment would have gone towards the statement balance first, then the cash withdrawals since. So only £640 of the cash withdrawals would have been paid off, leaving £260 which wasn't paid off till 18 July

So you were charged ave 6 days on £900 which is about £1.91. Then 14 days on £260 which is about £1.29.

Which is pretty close to what your were charged.

Thing to remember is that statemented balances are always paid before items not yet on a statement. The fact that the statement is waiting to be collected by DD is irrelavent. The Clarity is the only card I don't pay by DD for this reason - it just confuses things...