Capital One balance transfer interest warning!

Minerva_2

I just thought that I would share my experience as a warning!

I transferred £2,000 :eek: on to a Capital One Credit card, never spent on it and managed to pay it all off just before the one year 0% interest rate expired.

This month, when I received my credit card statement, rather than the £0.00 balance I was expecting, there was a balance transfer interest charge of £1.07, not a lot, but I couldn't understand why, as I had paid off all of my credit card balance the previous month, before the "due by date".

When I telephoned Capital One to query the charge they told me that I had been charged interest on the TOTAL amount of the balance transfer, £2,000 and that £1.07 was one day's interest on the £2,000, as the 0% deal ended on 31st January and they received my payment on 1st February!

According to my credit card statement, the payment was not due until 5th February 2007, but I had posted it early, if not I would have paid £5.35 in interest, although my balanced had in fact all been cleared!

This may seem a bit nit-picking, but I just thought that I would let you all know how careful you have to be with these 0% deals.

Minerva

jonnyb

Congratulations on not using the word illegal, like many posters do.

I'm sure Yorkshire Boy will come along soon with a copy of the T&C's for your deal - the guy is a genius.

There have been lots of similar posts to yours in the past; many other people have not realised that the end of the 0% deal very often does not co-incide with the monthly payment you have to make.

Minerva_2

No, I certainly wasn't implying that there was anything illegal about it, I just wrongly assumed that the end of the 0% deal would coincide with the monthly payment date! That will teach me not to read all the small print!

But I will learn from my mistake and hope that others do too!

Minerva

jojo1978_3

It sounds like your 0% deal ended at some point in January-not the 31st, they wouldn't have charged interest on the full amount that you originally transferred, just the amount that was left owing on your last statement. Did you get a reminder letter or a meassage on your statement a couple of months ago, that advised when the 0% was due to expire?
I know Capital one made a mistake recently and forgot to notify customers when it was due to expire. Might be worth checking, because if you never got the reminder, they were writing out to advise that they would refund the additional interest.

Mozette

Thanks for this! I've got a 0% deal with Capital One, so I'll make sure I get it sorted before this happens. Cheers!

Minerva_2

No jojo1978, the 0% deal definately ended on 31st January 2007 and they charged me interest on the whole of the balance transfer, albeit only for one day. I had cleared my balance completely and was feeling very pleased!

I will check my previous statement to see if they did remind me that it was due to expire though.

Minerva

mountainofdebt

I think some credit cards do put a reminder on the statements in the run up to a deal ending.

The things I would check first before kicking up a fuss is:

1) what date was the account opened - many deals are from when the account was opened and not when the BT was made.

2) when did the payment (clearing the account) reach the account.

As has previously been mentioned if the due date was after the 12 month anniversary of the account being opened then I think interest would be payable but I would argue only on the balance at the 12 month anniversary date and when you finally paid it off.

Have you still got your terms and conditions leaflet explaining the relevant dates?