Outrageous Credit Card Charges

yjo

Just a quick thread to see if credit card companies are allowed to charge what I reckon are outrageous rates.

Basically I took money out of my credit card account (£2400) and put it in my current account in a funds tranfer. They stung me with a 2% Cash Advance Fee and now theyre charging me approximately £32 PER DAY in interest because it was a cash transfer.

Is this legal, it seems abit much from my point of view.

I would appreciate any advice

Thanks

Voyager2002

So your interest charge is more than 1,000 pounds per month? Which card is this?

Anyway, if it is in the T and Cs that you signed then yes, it is legal.

sicker

yjo, I hope you meant £32 monthly or something is terribly wrong.

John

CLAPTON

assuming you meant £32 per month then this is about normal.

Drawing cash from a credit card is very expensive as not only do you pay a fee (2% in your case), but interest accrues from the day you withdraw and the cash interest rate is very high and if you have other spending on the card you will find that your purchases are paid off first and the high interest rate cash is paid off last.

exel1966

yjo wrote: »

Just a quick thread to see if credit card companies are allowed to charge what I reckon are outrageous rates.

Basically I took money out of my credit card account (£2400) and put it in my current account in a funds tranfer. They stung me with a 2% Cash Advance Fee and now theyre charging me approximately £32 PER DAY in interest because it was a cash transfer.

Is this legal, it seems abit much from my point of view.

I would appreciate any advice

Thanks

Yes it's perfectly legal and you signed the credit agreement agreeing to it !!
I suggest you take a few minutes to read the T&C's.

You've just learnt the first major lesson when owning a credit card. NEVER EVER make a cash withdrawl as you'll be charged interest from the moment you have the cash in your hand regardless of when you pay it back.
Did you need all that money at one time or has it sat in your current account for a while ?
You might want to consider obtaining another card (if your credit status permits) at 0% on transfers and transfer the balance, but whatever you do DON'T use it for anything else otherwise you'll get yourself even more in debt !

Gordon_the_Moron

Most credit cards charge over 20% APR for cash advances, they also charge a fee for the transaction as well, ridiculous but leads to one simple rule. Also, if you make purchases as well (lower APR) you can't pay off the cash advance first as the payments always go to the balance attracting the lowest interest rate first (unless it is a Nationwide card, as far as I know they are the only exception and they still charge a fee and an interest rate around the 20% mark on the cash)

NEVER EVER EVER EVER WITHDRAW CASH ON A CREDIT CARD

If you did mean £32 per day something is very very very wrong and you need to contact the card company immediately!

Da Moron