Credit card interest put me over limit

Sueps

Hi,

Yes, it's the first statement, only borrowed the money on 15th September. I suspect the rules are different for business cards but the terms on the back of the statement are ambiguous.

I don't seem to have been given any way to pay any of the balance off before getting the statement.

The late scumbags have paid us now so I may be able to pay it all off and do the bank out of any further charges!

bris

Seems a bit strange that the interest was added before the minimum payment was due. So if you borrow the 3000 then make the payment before the due date, the interest would not put you over.

StuC75

blitzboy wrote: »

Are you sure it was your first statement? Seems unusual to have interest on the first one, you usually get up to 56 days before interest is applied (i.e. after the next statement date).:undecided

Cash Advances do not have an Interest Free Period (unless as part of a 0% Deal). In Hindsight the OP should have Allowed for Cash Advance + Handling Fee + The Interest Being Charged from Day.

I know on Mbna Allow you to transfer 95% of your available credit (That would be 2,850 on 3,000 Credit Limit) so that it preserves a buffer for such charges..

Has the OP spoken to the Card Company - with the right tone they may be helpfull (i.e. apologetic rather than 'all guns blazing' at first)... Particularly to ask why such an amount was allowed to go through??

blitzboy

StuC75 wrote: »

Cash Advances do not have an Interest Free Period (unless as part of a 0% Deal). In Hindsight the OP should have Allowed for Cash Advance + Handling Fee + The Interest Being Charged from Day.

Ah, didn't realise it was a cash advance. I assumed that by saying 'spending limit' they were making a purchase(s).

In that case it seems an odd and expensive way of borrowing in the first place :eek:

Sueps

Hi again,

It's a new business so has no overdraft.

Borrowing on the card was the only way to cover wages in a hurry when the promised deadline for the payment had passed and the scumbags said "oh sorry, it'll be another 2 weeks". I did some shouting but unfortunately we can't do without their business. I have written to some of their directors to complain about their treatment of us.

Thanks for all the help. Won't get caught again!

StuC75

Sueps wrote: »

Hi again,

It's a new business so has no overdraft.

Borrowing on the card was the only way to cover wages in a hurry when the promised deadline for the payment had passed and the scumbags said "oh sorry, it'll be another 2 weeks". I did some shouting but unfortunately we can't do without their business. I have written to some of their directors to complain about their treatment of us.

Thanks for all the help. Won't get caught again!

Do you have any agreements in place with this client? particularly with regards to payment terms and when monies are due after invoicing?

chattychappy

StuC75 wrote: »

Do you have any agreements in place with this client? particularly with regards to payment terms and when monies are due after invoicing?

Unfortunately my experience is that whatever you agree, some will simply ignore such agreements. Sure you can bill for interest and sue if you're keen. But they then won't do business with you again. Some organisations are simply too bureaucratic to do it any other way. They get stuff signed off once a week, they do cheque runs once a month blah blah blah.

Probably beyond the scope of this thread. But my only comment is it is often worth trying to maintain a friendly working relationship with the suppliers "bought ledger" (or whatever minion does cheques). No doubt their lives are miserable with people chasing all the time. (One firm I knew, they would only take phone calls on a Monday afternoon!) At least this way you can ensure you know the way they work and can bill/work accordingly. Also, they are more likely to "care" about you rather than the next man if you have some positive relationship with them.

All "new" "small" businesses are desperate for new customers and probably take risks they shouldn't on giving credit. It's nice a couple of years down the line when you're stronger and can start dictating terms or turning away customers that don't behave.

Sueps

The problem is that they are a very large company and can get away with anything they want. If we could do without their business it would be different. We are in the construction industry and they do lots of work in this area.

If we tell them they have broken their own contract (which we have to sign to get the work and is all in their favour) then we may lose their business completely.

They can invent delays to their heart's content and only do payment runs every 2 weeks, so if it misses a run for any reason (invented or not) then it's 2 weeks more! The government has advised that all payments in the construction industry be made within 30 days but they think they are big enough to ignore it.

I will see if any of the letters to directors get a response and we'll only work for them again if we have nothing else.