New minimum interest payment

waterbaby

I have got a statement from Sainsburys saying that from June there will be a minimum interest payment of 50p each month. So if I pay off in full, which I do, I will still pay 50p. I will cancel it and use my other one instead, of course, but I am wondering if this is a one off or an emerging trend to counteract the loss of profit from reducing late charges etc. Have other cards done this?

Tustastic

Hello waterbaby, thanks for posting this. It sounds quite confusing - could you post the exact wording from Sainsbury's please?

waterbaby

Yes, it says:

"In 2005 we added a clause stating that we would make a minimum interest charge of 50p in any month where the interest payable was less than 50p, however due to system restrictions this was never introduced. This will now be implemented from the date of your June statement."

YorkshireBoy

waterbaby wrote: »

"In 2005 we added a clause stating that we would make a minimum interest charge of 50p in any month where the interest payable was less than 50p, however due to system restrictions this was never introduced. This will now be implemented from the date of your June statement."

There's your answer then. If you pay in full, there will be no interest payable. If there's no interest payable, there's nothing to round up to 50p.

Tustastic

Sounds like Sainsbury's doesn't want people who pay off in full every month as customers. As you say, wonder if it is a new trend?

waterbaby

YorkshireBoy wrote: »

There's your answer then. If you pay in full, there will no interest payable. If there's no interest payable, there's nothing to round up to 50p.

Surely I will have £0.00 interest to pay - which is less than 50p, hence I will pay 50p?

YorkshireBoy

waterbaby wrote: »

Surely I will have £0.00 interest to pay - which is less than 50p, hence I will pay 50p?

OK, lets look at your T&C's...

5.2 If in any month you incur interest and this is less than 50p, we will make a charge of 50p which will be added to your account in place of the interest.

http://www.sainsburysbank.co.uk/credit_cards/cca_importantinfo_std_orp.shtml

...still think you'll pay the 50p?

RTNI

waterbaby wrote: »

Surely I will have £0.00 interest to pay - which is less than 50p, hence I will pay 50p?

If you are due to have interest added to your account, and the amount is less than 50p, then you will be charged 50p.

If your balance is made up only of purchases (no cash adv or BT's outside of a 0% rate), you have paid the bill in full last month, and pay this bill in full you will not be charged interest.

RT

waterbaby

YorkshireBoy wrote: »

OK, lets look at your T&C's......still think you'll pay the 50p?

:T

OK, I see. I wasn't trying to say you were wrong. Just wanted to be sure.

King_Of_Fools

Most cards seem to have this clause nowadays although the minimum interest amount varies.