Cash advance charge

hegx

Hi Everyone

** I am re-posting this as I think I posted it in the wrong place before. Sorry for repeating myself!! **

I need some advice about reclaiming a cash advance fee.
I purchased travel money online from MoneyCorp using my credit card. I chose to use my credit card for added security and for the 'advantage points' that my credit card offers.
Usually if there is a charge for credit card, the website will let you know ("+ £1.50 credit card surcharge", or at ATMs etc). However, it didn't. It did say that my bank may treat this as a cash advance, but being a bit naive, I didn't realise what this meant.
I purchased my travel money thinking all was well.

I have just checked my statement and the £603 worth of Euros I purchased has attracted a cash advance fee of £30.23!!
I called the credit card company straight away to see if they could waive or at least reduce this. Surprise surprise, they couldn't. Not only that, I was also informed that I would be charged interest daily at 29.8% until I had paid it off! Needless to say, I paid it off over the phone immediately!

I know it's my own fault, I should have looked into the charges more carefully, but is there anything I can do? £30+ is far too much to just hand over!

Sorry to rant, but I'm SO ANNOYED! I had the money in my debit account, I could have just used that. I pay my credit card in full every month without fail. I only use it for the 'points' which translate into money off vouchers. I've just undone all my money-saving hard work :'( I'm gutted, and I feel so stupid as I'm sure this would have been obvious to most people!

Hope someone can offer me some advice?

Thanks,
Helen

dunstonh

I know it's my own fault, I should have looked into the charges more carefully, but is there anything I can do? £30+ is far too much to just hand over!

They publish their figures (typically on the back of each monthly statement). So, as you say, it was your fault.

Sorry to rant, but I'm SO ANNOYED!

I can imagine you are but you need to look at yourself. If the firm doesnt want to offer a goodwill gesture (and you wouldnt expect to here) then you can complain to the FOS but the charge is published and fair and nothing wrong has been done so the FOS are not likely to do anything.

Wywth

hegx wrote: »

Hi Everyone

** I am re-posting this as I think I posted it in the wrong place before. Sorry for repeating myself!! **

I need some advice about reclaiming a cash advance fee.
I purchased travel money online from MoneyCorp using my credit card. I chose to use my credit card for added security and for the 'advantage points' that my credit card offers.
Usually if there is a charge for credit card, the website will let you know ("+ £1.50 credit card surcharge", or at ATMs etc). However, it didn't. It did say that my bank may treat this as a cash advance, but being a bit naive, I didn't realise what this meant.
I purchased my travel money thinking all was well.

I have just checked my statement and the £603 worth of Euros I purchased has attracted a cash advance fee of £30.23!!
I called the credit card company straight away to see if they could waive or at least reduce this. Surprise surprise, they couldn't. Not only that, I was also informed that I would be charged interest daily at 29.8% until I had paid it off! Needless to say, I paid it off over the phone immediately!

I know it's my own fault, I should have looked into the charges more carefully, but is there anything I can do? £30+ is far too much to just hand over!

Sorry to rant, but I'm SO ANNOYED! I had the money in my debit account, I could have just used that. I pay my credit card in full every month without fail. I only use it for the 'points' which translate into money off vouchers. I've just undone all my money-saving hard work :'( I'm gutted, and I feel so stupid as I'm sure this would have been obvious to most people!

Hope someone can offer me some advice?

Thanks,
Helen

Can I ask, why did you withdraw over £600 in foreign currency?

You talk about using the credit card for security reasons, but walking round with over £600 in cash doesn't seem very security concious to me.

I often travel abroad, but rarely take more than about £100 in cash, maybe £200 tops.
Some to possibly pay for a taxi on arrival. The odd Euro or two to tip the hotel porter.
A little bit for a beer (or coffee for the teetotallers) .

The rest goes on the credit card; the car hire fees, the hotel fees, the eating out fees, etc. So much more secure than carrying round a pocketful of cash.

Read Martin's Cheap Travel Money Guide for more info:
http://www.moneysavingexpert.com/travel/cheap-travel-money

hegx

Wywth wrote: »

Can I ask, why did you withdraw over £600 in foreign currency?

Ironically, because I didn't want to get ripped off with credit card charges / poor exchange rate!

I had a read through the travel tips but got a bit confused by it all. I understand cash and I feel confident hiding it on my person (the £600 is money for 2 of us to split also). I didn't have time to apply for one of the recommended credit cards so I figured it would just be easier for me.

Like I said, I'm still very naive and I'm still learning from my mistakes! I wo't be making the same mistake again will I?

Next time I travel I'll take the time to look into things better, and ask for advice in foresight rather than hindsight!

hegx

dunstonh wrote: »

They publish their figures (typically on the back of each monthly statement). So, as you say, it was your fault.



I can imagine you are but you need to look at yourself. If the firm doesnt want to offer a goodwill gesture (and you wouldnt expect to here) then you can complain to the FOS but the charge is published and fair and nothing wrong has been done so the FOS are not likely to do anything.

I think the main problem was I didn't really understand what a cash advance even was! I pay my CC bill in full every month, so I treat it the same as I would a debit card.

I'll probably be wasting my time to ask for a goodwill gesture (and don't really deserve one) but you don't get anything without trying do you? Should I write to them using a similar format to this?
(sorry, I was not allowed to post a proper link as I am a new user - but I was referring to the reclaim credit card charges letter template on the site)

I will explore the FOS route also.

Sigh, I'll learn. I won't do it again.

Thanks for your advice.

Wywth

hegx wrote: »

I think the main problem was I didn't really understand what a cash advance even was! I pay my CC bill in full every month, so I treat it the same as I would a debit card.

I'll probably be wasting my time to ask for a goodwill gesture (and don't really deserve one) but you don't get anything without trying do you? Should I write to them using a similar format to this?
(sorry, I was not allowed to post a proper link as I am a new user - but I was referring to the reclaim credit card charges letter template on the site)

I will explore the FOS route also.

Sigh, I'll learn. I won't do it again.

Thanks for your advice.

You could simply call the credit card provider and discuss the charges with them, but as dunstonh says, I wouldn't bank on getting any goodwill gesture in this instance, and the charges are fully detailed by the credit card provider.

A cash advance fee is, as the name suggests, a fee charged for advancing you cash from such a credit card. The terms of the credit card will also explain that where a cash advance is authorised, there is no interest free period that you usually get with a retail purchase transaction.

There is no cash advance fees or interest with a debit card because, ... well there is no cash advance. As you are aware, the transactions are debited from your bank account.

It is unfortunate that you don't appear to have understand the terms of the credit card yet, but you have agreed to them and it would have said not to agree to such a consumer credit agreement if you did not agree or understand those terms.

But your non understanding of the terms you agreed you did understand and accept is probably not a reason anyone will extend a goodwill gesture to you.

But as you say, give it a try if you want. What have you got to lose?

XLsior

i'd suggest you get a halifax clarity card. Perhaps would have nip this in the bud to begin with. Free cash withdrawals, no conversion charges and the added security of a credit card. only little niggle is the 12.9% interest from the next day . However the great conversion rate mastercard gives does offset you interest you may pay especially in comparison to high street rates and especially to all the advance fee's you have had to pay ...

However bad luck about the charges to begin with, however as the guys have said this is detailed quite clearly on the charges section on the back. ANYTHING that involves cash with usually incur an advance fee, currency, gambling transactions etc...