Beware NatWest Balance Transfer fee interest sting

geordietracy

Just to let members know that if you do a balance transfer to a NatWest credit card then not only do you pay a balance transfer fee, you will then be charged interest on that fee too!

Having already made money from you, they want to squeeze out that last extra drop of money in any way they can! No wonder banks have a bad name!

I have been a NatWest customer for over 25 years but am so disgusted with this latest tactic that I will be cancelling my credit card with them at the end of the balance transfer free interest period - after all I may as well get my money's worth by making them administer it, and pay for paper, ink and postage by printing out my statements for the next 12 months. They will also be losing out on my current account business, as I will be closing that too.

So much for helpful banking!

YorkshireBoy

So they tell you, in the T&Cs, that they'll charge interest on the fee.

Then when they do what they say they will do in the T&Cs you throw your toys out of the pram and close your current account (and make yourself a load of work in the process).

Would have been far better to have read the T&Cs, disagreed with them, and taken your credit card business elsewhere surely?

Speaking of T&Cs, here they are...

5 Calculation of interest

(b) Interest on fees and charges accrues at the purchases rate and is charged from application.

http://www.natwest.com/downloads/personal/nw_sample_tscs.pdf

geordietracy

Wouldn't they have been better to increase their balance transfer fee percentage to a slightly higher rate and be upfront, rather than hide it in their T&Cs to catch out busy people like myself who then miss it. it is the principle of the way it was done rather than the actual amount (which is actually very small in the scale of things) that is annoying.

And it is very easy to transfer current accounts nowadays anyway, so I'd prefer to deal with a more honest and upfront bank and allow them to earn money from me!

stephane_2

geordietracy wrote: »

Wouldn't they have been better to increase their balance transfer fee percentage to a slightly higher rate and be upfront, rather than hide it in their T&Cs to catch out busy people like myself who then miss it. it is the principle of the way it was done rather than the actual amount (which is actually very small in the scale of things) that is annoying.

And it is very easy to transfer current accounts nowadays anyway, so I'd prefer to deal with a more honest and upfront bank and allow them to earn money from me!

You'll find out that most bank do it....so make sure you read their T&C first....!! Or we'll see you again to rant about it.....

[Deleted User]

geordietracy wrote: »

So much for helpful banking!

So much for 'I confirm that I have read the terms and conditions.'

YorkshireBoy

geordietracy wrote: »

Wouldn't they have been better to increase their balance transfer fee percentage to a slightly higher rate and be upfront

No, because I and others would then pay more...because we know what to do to ensure no interest is payable on the fee. Interested? Want to know more?

rather than hide it in their T&Cs

It's only number 5, so most people would still be awake by then?

to catch out busy people like myself

Ah that old chestnut!

it is the principle

Principles usually cost something...be it time and/or money. You'll expend one or the other in changing current accounts.

the way it was done rather than the actual amount (which is actually very small in the scale of things)

You've reslised we're talking pennies then?...and even less if you know how to play the game (by reading the T&Cs).

And it is very easy to transfer current accounts nowadays anyway

Yes I know a bit about changing banks, but I'd never entrust the switching of DDs to a bank because I've read too many tales of woe on here.

so I'd prefer to deal with a more honest and upfront bank

When you find one, be sure to let us know where it is.

and allow them to earn money from me!

And they will...if you don't read and understand their T&Cs!

geordietracy

Have done balance transfers with other cards before - MBNA, Tesco Bank, Santander and including my Nat West card last year - on none of those occasions was I charged interest on the balance transfer fee. So T&Cs at Nat West have obviously changed, and yes, I obviously should have read them!

In the interests of plain English the T&C should be put in next to the wording of the % fee to be charged on the balance transfer - not in the small print over the page. Banks (and other businesses) make their money knowing people don't always read the small print, and then justify it by telling them they should have read all the T&Cs.

Nat West have lost money at the end of the day, and having read posts on other forums regarding their conduct with other customers, they obviously have no interest in the little people.

'If you make customers unhappy in the real world, they might each tell six friends. If you make customers unhappy on the Internet, they can each tell 6,000 friends.'
— Jeff Bezos, Founder, Amazon.com

chattychappy

geordietracy wrote: »

hide it in their T&Cs to catch out busy people like myself who then miss it.

I'm a busy person, but wasn't caught out.

As a "sting" it's not a very successful one, is it? Interest on the fee will be tiny, and since your first payment will be applied to it, interest will soon stop running. A small percentage on a small percentage for just one month.

geordietracy

Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, re-read Rule 1.

Customers may forget what you said but they'll never forget how you made them feel.
— Anon

If you don't take care of your customers, someone else will.
— Anon

[Deleted User]

geordietracy wrote: »

Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, re-read Rule 1.

Rule 1: The customer is very often confused, mistaken or just plain wrong

Rule 2: see rule 1.

This isn't the 1980's any more.

gwapenut

A fool and his/her money are soon parted -- Anon

YorkshireBoy, what's the trick to avoid the interest on the fee, please tell me so that I can sleep at night rather than spend ages repaying those lost pennies? Is it to make the first minimum payment as early as possible in the statement period?