Santander calculating monthly total in strange way

spursfan323

Just started with my first ever CC - Santander 123, DD set up to pay the balance in full each month.

The first statement came by post with a monthly total of £532. However, the payment taken several weeks later was £471. I realised that (for some reason) they had applied a refund of an item returned a week after the statement date, back to this statement.

I'm now annoyed to receive the 2nd statement which states:

Balance b/f 532
Payments recd 471
Estimated interest £11.37

I feel the interest charge is a disgrace, as I had set up my DD to pay in full each month. I will call them to cancel it.

My question is - will this happen every month now for the future, assuming I return items? I don't want to have to fight it each month with Customer Services!

Thanks.

endure

The estimated interest is what you would pay if you only paid the minimum amount off your bill. If you pay in full you won't pay any interest.

Gromitt

Indeed, every CC company is forced to show "Estimated interest" to show how much you would be charged if you decided to carry a balance. Since you are paying in full by DD, you'll never carry a balance and so can ignore this part of the statement.

spursfan323

Ok, thanks for the help.

I had (erroneously) assumed that the interest charge was on the difference between what I had paid (471) and what the paper statement had totalled (532). Reassuring to know that is not the case.

Still, it is rather annoying that the amount taken does not agree to the statement total.

SnowTiger

spursfan323 wrote: »

Ok, thanks for the help.

I had (erroneously) assumed that the interest charge was on the difference between what I had paid (471) and what the paper statement had totalled (532). Reassuring to know that is not the case.

Still, it is rather annoying that the amount taken does not agree to the statement total.

Is it? You can make an additional payment, if you wish.

Annoying problem solved.

opinions4u

spursfan323 wrote: »

Still, it is rather annoying that the amount taken does not agree to the statement total.

Estimated interest is an industry agreed calculation that tells you what the interest charge will be if you pay the minimum payment at a specified point in time.

If you pay more or pay earlier the estimate will be higher than the actual interest charge.

If you clear the balance in full month after month you still get an estimated interest figure on your statement yet the reality is that no interest is charged.

I feel the interest charge is a disgrace

There is no disgrace. There is nothing to get annoyed about. It's simply a misunderstanding on your part.

CKhalvashi

As above.

I have 'estimated interest' calculated at around £2000 most months, yet don't pay a penny.

CK

molerat

spursfan323 wrote: »

Ok, thanks for the help.

I had (erroneously) assumed that the interest charge was on the difference between what I had paid (471) and what the paper statement had totalled (532). Reassuring to know that is not the case.

Still, it is rather annoying that the amount taken does not agree to the statement total.

It does agree, they have actually reduced the statement balance. Cap1 will deduct any refunds after statement date from the DD if paying in full. Next month's statement will "disagree" the other way round.