Halifax charge interest for money already repaid!!!

knightstyle

Thanks zagfles, The full balance was paid off on 20th June by DD as usual, the £1540 was the spending and the 3 cash advances from then to 30th June, and no interest was paid on this account till these transactions.

zagfles

knightstyle wrote: »

Thanks zagfles, The full balance was paid off on 20th June by DD as usual, the £1540 was the spending and the 3 cash advances from then to 30th June, and no interest was paid on this account till these transactions.

The DD on 20 June would have paid off the previous statement balance, not the total outstanding balance, unless there was no spending between your previous statement and 20 June.

I think you're getting confused. You get a statement, 25 days later the statement balance is paid by DD.

If, in between these dates, you do some spending/cash withdrawals, you can't pay them off without paying your entire statement balance off first. The T&Cs state that any payment goes towards items on a statement before items not on a statement.

I don't know what would happen to the DD if you paid off the entire balance plus spending since, they might take it anyway or they might not. If you're going to pay cash withdrawals off early to save interest, as is sensible, it doesn't really make sense to have a DD, just make all payments manually.

knightstyle

Thanks again, surely if I ring up and ask how much is outstanding and then pay that amount I pay the cash advances and the purchases? Also when I phoned Halifax stated that any money paid into the account would pay off the cash advances first, before any purchases as they pay off the highest interest first and purchases are interest free. Have had an email from Gavin at Halifax and am waiting for him to explain how they work out the interest.

YorkshireBoy

knightstyle wrote: »

surely if I ring up and ask how much is outstanding and then pay that amount I pay the cash advances and the purchases?

Yes you do...but not the interest that's accrued on the cash advances (and purchases if you didn't clear the last two statements in full by their respective due dates) because the CSA won't have that information in front of them.

And even if they did have the information they wouldn't know how long your payment would take to clear onto your account so there would still be further accrued interest to be charged to the account on your next statement.

zagfles

knightstyle wrote: »

Thanks again, surely if I ring up and ask how much is outstanding and then pay that amount I pay the cash advances and the purchases?

What was the actualamount outstanding at that time? It seems it must have been more than the £1540 you paid because otherwise where did the £900 come from you paid by DD on 18 July? I doubt it was spending after 4 July as that would be too soon to be collected.

Also when I phoned Halifax stated that any money paid into the account would pay off the cash advances first, before any purchases as they pay off the highest interest first and purchases are interest free. Have had an email from Gavin at Halifax and am waiting for him to explain how they work out the interest.

As I said before, stuff on a statement is always paid off before stuff not on a statement. Cash advances on a statement are paid before purchases on a statement, and cash advances not on a statement are paid before purchases not on a statement. But statemented stuff is always paid before any non statemented stuff.

It has to work like that. Otherwise if you got a statement for £500, then spent/withdrew £200 a few days later, then paid off the full statement of £500 a few days later, if the payments went to stuff not on the statement first you then haven't paid off the full statement balance and would be charged interest!

justad36

I was reading this post with interest as i've just applied for a HC CC. I applied with a view to using the card abroad for cash withdrawals as I travel a lot. My question is, if I deposit some money in to my HC CC account BEFORE I withdraw any money, would I be charged any interest on it. Also, would I be allowed to do that?

Thanks in anticipation

knightstyle

Amazed to see this thread I started pop up again! After several conversations with Halifax it seems that when you pay money in advance it is returned within a few days, But if you credit the account the money will go to pay off the highest interest bits, i.e. the cash withdrawals. So I will now make a payment from my bank about 3 working days before making overseas cash withdrawals, that should minimise the interest. Still waiting for their reply as to how they worked out my interest I was referring to earlier in the post.

opinions4u

knightstyle wrote: »

After several conversations with Halifax it seems that when you pay money in advance it is returned within a few days

What do you/they mean by "returned"?

But if you credit the account the money will go to pay off the highest interest bits, i.e. the cash withdrawals.

Although on a Clarity card, the rate is the same for purchases and cash advances.

So I will now make a payment from my bank about 3 working days before making overseas cash withdrawals, that should minimise the interest.

Good plan.

Still waiting for their reply as to how they worked out my interest I was referring to earlier in the post.

Make sure you share it. Because I'm intrigued!

justad36 wrote: »

if I deposit some money in to my HC CC account BEFORE I withdraw any money, would I be charged any interest on it.

If the credit is processed before the withdrawal is made, no.

Also, would I be allowed to do that?

Officially, no, it's against the terms and conditions. But I suspect you'd get away with it for modest amounts - but it runs the risk of your card being frozen when you need it the most!

justad36

wow!! Thank you all for such a prompt reply. I think I'll go down the route to withdraw cash and then pay it off on the same day via my HSBC current a/c - I believe the money gets credited on the same day - I'm sure someone will correct me if I'm wrong.

jennifernil

The Claity Card does not accept Faster Payments yet, so it would take 3 days at least to credit your account.