cleared card balance, but still charged interest

wowclothes

Hi,

My august virgin credit card balance was £300.
The due date was 04 september.

The credit card company received full payment + the provisional balance amount (for next months statement, listed online) on the 21st August (according to their online system).

Therefore after 22nd August my balance was zero.

On 24th August I bought goods for £140, but also had a purchase refund of £170, therefore £30 in credit.

What I don't understand is why on 4th september the credit card company took out a £25 minimum payment from my current account, and then charged me £3 interest on the 5th september.

Due to the refund from a purchase I was already £30 in credit, but them taking the £25 out made me £55 in credit.

Their representative said the interest charge was something to do with interest accruing from the day of purchase.

I am really confused about this, as wouldn't that mean that you would never know how much to pay off the full balance, as interest is apparently being added in the period between purchase, and the due date.

Can someone much brighter than me explain how I managed to pay interest / is their explanation right.

Many thanks

Craig

[Deleted User]

Basically, they sent you your statement in August telling you what you owed on that day. You didn't pay the balance until 21 August, so they are now charging you the interest accrued between the statement and the payment date.

Also, refunds don't count towards the min payment, hence you still being asked for a min payment.

Eydon

Also, Virgin always take your direct debit regardless of any interim payments (which is why they took it even though you were already in credit). All MBNA cards work this way.

If you don't want the DD to be taken you need to phone them and tell them.

wowclothes

Makes more sense now, however still not entirely sure about why they took a 'minimum payment' of £25 on 4th september, when I had already paid £300 between the statement been issued in early august, and the due date. Their system confirms payment of £300 on 21st August, and the due date of 4th September.

Actually paid £56 more than the statement balance on 21st Aug. This was to cover what would appear on the next statement.

wowclothes

Thanks Eydon,

You replied while I was typing and I did not notice your post. Thanks also to ZX81.

Naf

As with many things, the moment your bill is produced, the amount owing is sent to the DD system, and that amount will be claimed regardless of any payments made between.

thenudeone

All MBNA statements clearly state that the DD will ALWAYS be taken regardless of any other payments made.

They may be able to stop the DD (if you've already paid the balance in full, for example) if you ask them and give them enough time.

molerat

thenudeone wrote: »

All MBNA statements clearly state that the DD will ALWAYS be taken regardless of any other payments made.

Not correct. From my MBNA statement -

Minimum Payment This is calculated in accordance with clause 2 of your terms and conditions. Refunds and credits will not count towards your minimum payment unless they pay off your balance in full.

blacksta

BaclaryCard dont take the regular dd payment if you have settled the balance allowing at least 5 days before DD Instruction is sent out

bengal-stripe

thenudeone wrote: »

All MBNA statements clearly state that the DD will ALWAYS be taken regardless of any other payments made.

Correct!

From MBNA statement (front page)

The full/minimum payment of £xxx will be collected from your nominated bank by Direct Debit on or after yy/zz/12.

Please remember: your regular Direct Debit will be always be taken, regardless of any additional payments you choose to make.

molerat wrote: »

Not correct.

"Molerat" do you have a DD (either minimum or full) in place?

I presume, people without a DD in place do not get this message on their statements,
after all, it's not their concern.

molerat

Just double checked my statement, I have a full balance DD in place.
The quote from the front page is correct.
My quote from the last page is also correct.