Credit card interest on zero balance??

chattychappy

pqrdef wrote: »

One of these days, trailing interest will be banned and they'll be told they've got to accept full settlement by the due date as if it were paid on the statement date,

"as if" - what create a fiction just because it suits you? A payment made on the due-by date isn't paid on the statement date, is it? Why should people who pay earlier subsidise those who pay later?

pqrdef wrote: »

like everybody else.

Er...precisely who else operates a credit facility on this basis?

pqrdef wrote: »

But dragging the banks into the real world is a long hard job.

Looks like dragging consumers who don't take responsibility for their borrowing decisions into the real world will take even longer.

dzug1

pqrdef wrote: »

One of these days, trailing interest will be banned and they'll be told they've got to accept full settlement by the due date as if it were paid on the statement date, like everybody else.

All that means is they'd calculate interest up to the due date anyway and shove that on the statement

leopold

Wow... All I did was ask what I thought was a perfectly legitimate question. I thought this was a forum for helping people and giving advice?

The first few replies got me thinking: It's been a long time since I last ran up a big credit card debt that took time to pay off and, once I'd made that last payment, the balance was clear and no more interest was charged. So I went to the banks and asked them about it. I've since had clarification from one of the banks, who responded to my query very quickly, explained it was daily interest and how it works, and then refunded the interest charged in full. Can't fault the customer service there! So for you guys who were helpful, thank you.

leopold

Deleted_User wrote: »

Wouldn't you charge interest to people who owed you money if you ran a bank?

Yes, I would. But then I wasn't suggesting banks do otherwise.

Now, are you going to be helpful or not?

leopold

chattychappy wrote: »

Why should people who pay earlier subsidise those who pay later?

Are you an MBNA customer? If it helps, I can send you a cheque for a proportional amount of the £3.21 interest that I was refunded. Don't spend it all at once

leopold

The_Boss wrote: »

When did your 0% deal on the two accounts end?

I didn't have a 0% deal on either card. I got an Abbey National-branded MBNA card when I joined their bank in 2007, and it was subsequently replaced by a Santander one when they took over. That's why I was surprised at the daily interest.

CLAPTON

leopold wrote: »

! So for you guys who were helpful, thank you.

As everyone has given you valuable (as you didn't know that) correct (as it's right) information about how interest is charged on the daily balance (very reasonable don't you think?) why don't you thank them then?

[Deleted User]

leopold wrote: »

Now, are you going to be helpful or not?

How much more help do you need?

Hominu

pqrdef wrote: »

One of these days, trailing interest will be banned and they'll be told they've got to accept full settlement by the due date as if it were paid on the statement date, like everybody else.

I don't know who this "everybody else" is, I certainly don't know anyone. Your basically saying that if I run up a balance over several months and then pay off the balance the day before the statement is due to be printed, I shouldn't pay any interest, but the day after, I should pay a months interest as its now printed on the statement.

Doesn't make sense. It's not logical.

They already say "Your next months estimated interest will be £xx.xx". Pay it off early and you pay less than that, simple as.

Hominu

leopold wrote: »

I didn't have a 0% deal on either card. I got an Abbey National-branded MBNA card when I joined their bank in 2007, and it was subsequently replaced by a Santander one when they took over. That's why I was surprised at the daily interest.

Even thought every credit card works in exactly the same way.

You borrow the money, you pay interest on it until you've paid it back. Can't get any simpler than that. However, since banks are nice and generous, they'll not charge interest if you pay off your statement in full each and every month.