Is there a way around my error?

chexum

thenudeone wrote: »

This clearly goes against the spirit (if not the letter) of the payment allocation rules.

Some time ago I would have been of the same opinion. However, the more I think about it, the more sense the reference to the statement makes. That's the only official, reliable document that shows the state of the account at regular intervals, however long are those in internet terms.

If I purchase something today, on a 0% balance transfer card, should I be able to argue my way out of any interest by paying it off with faster payments just now? Even if the bank doesn't even know about an imprinted (offline) transaction executed today? If not, why not?

Why should I wait for it to register on the online list of transactions? Perhaps I don't want to wait, because there's a few days delay in processing payments, but there's no way I can be sure when the transaction would appear, I just want to pay *that* one off today, as it was a mistake. It would be "unfair" for me to incur charges on a 0% BT card, right?

thenudeone

chexum wrote: »

It would be "unfair" for me to incur charges on a 0% BT card, right?

No-one is asking a bank to hold on to a payment just in case another higher rate transaction (which they don't know about) appears later. They should just apply payments to whatever transactions are on the account.

That rule would be very clear, easy to understand, and is already clearly defined for interest charging purposes.

newgirlhere99

Just thought Id update on this situation.

I rang Halifax and stated my case to them. They took a few days to get back to me but they did reallocate my payment to the purchase transaction and refunded the interest charged. So a good result.
Thanks for all the helpful comments.

newgirlhere99

Still, its not a risk that I would take. And I can't understand why the OP would make an extra payment of £1850 to a card charging no interest.

Comment by Jammi above

I made the extra payment as I will pay the balance by the end of interest free period....what's not to understand??

fozmcfc

It is still not wise to spend on a card which you have a 0% BT on anyway, as interest will still be charged if the balance including the 0% BT amount isn't cleared at the end of the month.

chattychappy

fozmcfc wrote: »

It is still not wise to spend on a card which you have a 0% BT on anyway, as interest will still be charged if the balance including the 0% BT amount isn't cleared at the end of the month.

If apart from your promotional balance you are not paying interest anywhere and are paying off purchases in full each month, then yes - those purchases should go onto another card. (A few mathematical exceptions..)

Else it is usually better to put purchases onto the BT card so that all of your repayment is allocated to purchases first.

opinions4u

newgirlhere99 wrote: »

Just thought Id update on this situation.

I rang Halifax and stated my case to them. They took a few days to get back to me but they did reallocate my payment to the purchase transaction and refunded the interest charged. So a good result.
Thanks for all the helpful comments.

I'd just like to say thanks for coming back and updating the thread.

It's frustrating when people don't.

Glad you got it resolved and glad they listened and thought it through.

Jammi

newgirlhere99 wrote: »

Still, its not a risk that I would take. And I can't understand why the OP would make an extra payment of £1850 to a card charging no interest.

Comment by Jammi above

I made the extra payment as I will pay the balance by the end of interest free period....what's not to understand??

I'll explain in simple terms.

If I (and most people on this forum) had an credit card debt incurring no interest until may 2012, I'd open an instant access savings account, at 3% interest, and deposit the £1850 there. In May when the interest free period ends, the savings would have accumulated an interest of about £30. I'll pay the credit card company £1850 and keep the £30.

newgirlhere99

Jammi wrote: »

I'll explain in simple terms.

If I (and most people on this forum) had an credit card debt incurring no interest until may 2012, I'd open an instant access savings account, at 3% interest, and deposit the £1850 there. In May when the interest free period ends, the savings would have accumulated an interest of about £30. I'll pay the credit card company £1850 and keep the £30.

Im aware that some people do that, my personal choice is to see the balance reducing asap.

However, Im grateful for the very helpful comments from most forum users, unlike the unhelpul, sarcastic comment above. I dont want to turn this into turntaking of comments, thank you. But please note what I've said as it's offputting to new posters to come across sarcasm and rudeness.