Paid off balance, interest still added.

Confucius_2

I recently used some investments to pay off an existing credit card debt of over £7000. The money reached my CC company on March 9th (it was due by March 15th) yet on the statement, dated 21st March, interest has been added (I have recently registered with this CC company's online service allowing me access before the paper statement arrives).

Now I have not, in the past, made full payments to my card - my bad, but no point in berating me for it, that's just the way it was.

The CC company explained that the interest added on March 21st was carried over because the balance had not previously been paid off on a monthly basis, I understand this, however... My point of view is that having received a statement in February, and having paid the balance off in full before the latest payment date I should not be subject to any further interest, how, also, am I to know the additional amount of interest due if I was not aware that it would be added anyway - after all, it took a week from the statement date for it to land on my doorstep!

I realise that I could have registered for their online service earlier, but on the other hand why should those using the paper-based service be discriminated against?

Anyway, has anyone any 'top tips' for getting my CC company to cancel what they see as outstanding interest, or debt, and I see as a money making scam on their part? I should add that I intend to cancel the card anyway in the next few days. I would of course not want to put my credit rating in jeopardy.

tom188

Why should they cancel the interest?

Interest is charged on a daily basis.

I presume you paid the balance shown on the February 21st statement - this is a snapshot of your account at this date.

You paid on March 9th.

Therefore interest was accrued between Feb 21st and March 9th on the £7000, which was put on your March 21st statement - why would you expect this period to be interest free.

Only if the £7000 had hit the account on Feb 21st would you not be charged further interest.

You will also find you will be charged interest on next months statement as well unless you overpay the balance by enough to stop it being accrued.

jamesd

What you're seeing is completely normal and expected. To avoid a repeat, take the balance on the most recent statement and add interest on that balance at the cash rate until the day you expect your payment to arrive at the credit card company.

desk_jockey

From June HALIFAX will charge 50p interest in any month where the interest payable is less than 50p.

***account closed***

King_Of_Fools

Confucius wrote: »

The CC company explained that the interest added on March 21st was carried over because the balance had not previously been paid off on a monthly basis, I understand this, however... My point of view is that having received a statement in February, and having paid the balance off in full before the latest payment date I should not be subject to any further interest, how, also, am I to know the additional amount of interest due if I was not aware that it would be added anyway - after all, it took a week from the statement date for it to land on my doorstep!

Interest is charged in arrears not in advance because you CC company cannot work out when you are going to pay off the whole amount.

The interest on your February statement will be interest up-to 21st February. Any interest payable between then and 21st March will appear on your March statement.

If you pay off this month's statement in full you will not be liable to any further interest.