Interest on student credit card?

Selphie142

I started using my Lloyds TSB student credit card with a limit of £1000 at the end of November so I could get Christmas gifts and then pay it off in January when my loan came through. Stupidly I didn't make any payments; the guy in the bank told me it was interest free so I asumed that I'd be okay until January when I paid it all back then not use it again.

I had a phone call from the bank today to tell me I now owed them money; I had been charged £12 for a late payment putting me 74 pence over my credit card limit. Due to this I've been charged an extra £12 as well as £15.35 in interest. (Yet somehow I supposed to pay back just over £55 which is also confusing.)

Does anyone know why I've been charged interest on a no interest card? Also, where did the figure £15.35 come from?

Many many thanks in advance.

System

From Lloyds TSB site

• Up to 56 days interest-free* credit on purchases (from the date of transaction) if you pay your balance in full and on time each month.
• Credit Limit to help you cover unexpected costs.
• Representative 19.9% APR (variable).

You still have to make the minimum payments each month to avoid non-payment fees

Selphie142

So I have to pay interest because I've missed monthly payments?

System

Selphie142 wrote: »

So I have to pay interest because I've missed monthly payments?

No you have to pay interest because you didn't pay the balance off. The up to 56 days mean using your card the day after paying the previous balance off. You then have until the last day before your next statement must be paid (approx 56 days). That is the interest free period.
If you then pay the balance off at that point then it stays interest free. If you do not pay at all then not only are you now paying interest on the balance but have also incurred a late payment charge.
If you only pay some of it off then you pay interest on the remaining balance.

ETA
See this link from CAB. Probably explains things better than I have

Selphie142

I've never used my card before... and I've calculated that it's been 43 days since I first ever used it.

Also I was told that as I had a student account I could get an interest free student credit card so I natually assumed that it was interest free completely while I was a student like my overdraft. Definately my fault on the late payment charges; definately learnt from that.

Tch. I think this is gonna call for a trip out to the bank! Gonna have a talk with the staff there. Then get it paid off asap and cut it up and never use it again!

Thank you so much for your help; I really appreciate it.

tomjonesrules

Did you not read the paperwork that came with the card?

System

Selphie142 wrote: »

I've never used my card before... and I've calculated that it's been 43 days since I first ever used it..

The 56 days doesn't start from when you first used it.It is the MAXIMUM amount of time that it is possible to get interest free credit.

Selphie142

Thank you for all your help!!

Been into the bank today and spoke and explained my situation to the branch manager. I've now paid off the balance in full and the bank are refunding me the 2 late charges, the interest I paid and a goodwill of £50!

I've really learnt my lesson here - need to read all the terms and conditions properly and also be more aware of how these things work. It was definately a very expensive lesson learnt.