Credit Card Paid Off - Still Owe Money

danwith

I've been away from home for a couple of weeks and come home to find a letter from MBNA Credit Card saying I owe £33.17.

I was surprised as I thought I had paid off my Virgin Credit Card in June and I was certain I hadn't used it since. So I've been online to see where the amount has been charge from. I don't get paper bills from them so I went through the online statements and it appears they charged me £20.71 interest after paying amount off. Because I have been unaware of this I now owe £45.66 in late charges!

To say I'm a bit annoyed is an understatement, is there anyway around this or do I have to just accept this and pay the man?

Any advice appreciated.

fracturedsun

Credit cards always have a charge the next month after you clear off a balance to cover the residual interest. (You have to pay it off two months in a row for the interest to be zero). You aren't the first person to be confused by that.

You could try ringing them, if you explain politely they might be able to remove the late charges but they aren't under any obligation to (it's your responsibility to make sure it's completely paid off). If the interest is owed according to the T&Cs then obviously you have to pay that.

McKneff

Presumably after you paid it off and the put interest on it, you should have been notified of another statement the following month, it would be understandable if you did and you dismissed it because you 'thought' you had paid it off.

Give them a ring, be nice, if its your first transgression they may just waive it.

Look for a generic number if its an 0845/0870 number on saynoto0870.

Good luck and let us know how you got on.

danwith

Thanks for your replies, I accept that it's my fault it's just annoying that this stuff happens. I'm sure there are thousands of busy lives that fall into this trap and these companies make millions from it.

Anyway I've called them and told them my story, vented some of my annoyance, this got me as far as that they will eliminate one of the late charges (£12). However, the payment must be made by the 9th September and it takes 4 days for a payment by card to clear so there would be another late charge.

For this gesture to be of any benefit I'd have to pay (£33.17) via online bank hoping the payment will go through by tomorrow. So that's what I've done, bank says it'll be received in the next 2 hours.

I asked if any interest would be charged on that amount, been assured that there will be no more. So I'm done with them now and good riddance to them.

thenudeone

The solution, as always, is to set up a direct debit for the minimum payment, then you'll NEVER have any late payment charges or late payment markers.

Come people say you "lose control" this way, but if you're not checking your statements every month, you're obviously not in control of your finances anyway.

redpete

TheBig? wrote: »

Is the two months in a row the last payment then a months interest or two months of just interest.

It's just paying in full the balance amount shown on the statement two months in a row. It doesn't matter whether the balance includes new interest, new spending or unpaid amounts from the previous month.

Aqua had updated the account 06/09/12 saying I still had a balance of a £1, is this right or are they taking the !!!!?

Maybe they have a minimum amount that they deal in - so any interest added that is less than £1 will be rounded up to £1.

Lith

Why would you pay interest, if you paid the card off? that (text removed by MSE Forum Team) doesn't make sense, you don't pay anything long as the card has been paid off, anyway look's to me they're trying to pull a fast one well don't be surprised im with MBNA as well (had problems with them) lol

opinions4u

If you always clear the balance in full (and avoid cash type transactions) you will not pay interest.

If, one month, you pay less than the full balance interest will be charged from the date of each transaction you've made.

Interest will continue to be charged until you clear the debt in full. And then you will have an interest charge on the previous balance from statement date to settlement date. No further interest is charged when the second consecutive statement balance has been paid in full.

anyway look's to me they're trying to pull a fast one well don't be surprised im with MBNA as well (had problems with them) lol

No. It looks like you don't understand it.

Here is a link to a typical set of credit card T&Cs.

You will not pay interest on new purchases if:
• your previous statement was paid in full and on time; and
• you pay your current statement in full and on time.

[Deleted User]

When you ticked the box that said 'I have read and understood the term and conditions', I think you may have been fibbing...

exel1966

Damn, did I miss something.

The ForumTeam are getting very hot at the moment, editing and deleting posts. Shame they don't look at the real problems of trolls/newbies purposely posting highly contentious and emotive issues with particularly bad attitudes knowing they have the effect of winding up regular posters who post useful replies.

chattychappy

danwith wrote: »

So I'm done with them now and good riddance to them.

Strange attitude really. You broke the T+Cs and were charged the agreed penalty. They waived some of this when you called up. But you still have a sense of anger.

You blame (in part at least) falling into this "trap" on having a busy life. Might I suggest, you don't bother with CCs in the future?