creditcard charged me for interests going over limit

dibs1975

i got a credit card before christmas, it only had a £250 limit to start. i spent up to £144.odd. i got my first statement and it said i had around £2.50 left to spend and the min payment was £8.odd. then my next statement turns up saying to pay nearly £29. i looked online and ive been charged for going over my limit. i rang them and they said it was because the interest had pushed it over. can they do this or can i fight it, as what i spent didnt go over my limit and i paid the miniman payment. thanks for any advice anyone can give me

YorkshireBoy

dibs1975 wrote: »

can they do this or can i fight it

Yes and no...in that order.

They told you what the next month's estimated interest was on your first statement, with some caveats...the most important being that they assumed you wouldn't make any further purchases.

Did you not understand that by making further purchases your interest would increase?

BTW, a £250 limit would indicate this is a credit-builder card. Why on earth are you carrying an interest bearing balance on there? You're supposed to be building a credit history, not assembling debt...presumably at circa 30% APR?

blacksta

Doesn't make sense, cause your minimum payment would have covered the likely interest. Unless you used the card again in between your payment clearing

dresdendave

Something doesn't add up here.

Your card had a £250 limit and you spent £144 and then made a minimum payment of £8. Then the next month's interest pushed you over the limit?

How much interest were you charged?

If you meant to say you spent £244 and then only made a minimum payment despite being so close to the limit, then that is the risk you take, virtually maxing out your card and then only making a minimum payment.

dibs1975

i meant to say i spend £244 on the card not £144, my mistake. i didnt use the card again because i knew i was near my limit. i was only going to pay the minimam payment for the first two statements as it was over christmas and this month, on the next statement i was going to start and pay extra off it.i thought the interest was not included on my limit or at least would be covered by the min payment. i've tried to talk to them on the phone but they keep fobbing me off with loads of jargon. one said i should have kept at least £25 to £30 below my limit for this reason. but when i signed up nobody on the phone from them said anything like that.

YorkshireBoy

Was any of the £244 taken as cash? Or termed a cash transaction, ie gambling deposit etc?

Which card is it?

dresdendave

I'm afraid you are just going to have to put this down to experience and learn from it. The card company have done nothing wrong, it's your responsibility to manage the card within it's limit.

The advice over the phone about always leaving about £30 available balance may have seemed a bit patronising but it's advice you should heed. As mentioned by a previous poster, this card probably has a very high APR, please try to pay the balance off ASAP.

dibs1975

it a vanquis, when i first was approved for the card they gave me a cash advance into my bank account. but that was included in my first statement when it said avaible balance £2.something. i'll have to dig it out from upstairs for exact amount. i did have a text on my phone off them saying the same but after paying first statement i deleted it.

dibs1975

but i wasnt told about leaving £20-£30 below limit until i question how i went over the limit.

YorkshireBoy

Did you use the card at all after the first statement date?

What was the statement balance?
What was the estimated interest figure?
What was the minimum payment amount and it's calculation method, ie 5%?

dibs1975

ill have to go and find the statement up stairs, might be a while trying to find it. everything upside down with christmas and 4 kids