Stung by 0% transfer offer on existing CC

JosephWatkins

Hi, recently got a letter from mybank offering 0% for 1 year on balance transfers to my existing credit card, which I took them up on. I normally pay all of this credit card each month, so started paying off the total less the transferred-in balance. I then found that I am charged interest from the day of purchase for as long as I have any outstanding balance (0% or not).

Of course this was hidden in the small print, which I didn't read, and I feel a bit of a fool. I class this as mis-selling. The offer was completely inappropriate for me on a credit card that I use for all my purchases, and which I pay off in full each month.

To be fair, they have offered to repay the interest, and suggested I "get another card" for my purchases, until the 0% period is up. Crazy. I've now transferred the 0% out (so I'm down the arrangement fee) to another card.

I'm sure this is mentioned somewhere here, but couldn't see it

Cheers

Herbalus

This is why you never mix a BT with purchases. If you note that the T+Cs say you only get up 50-56 days interest if you pay the previous statement in full, it makes a lot more sense.

You didn't clear the full balance (because of your BT) so you didn't get an interest free period.

Well done on the refund though! Not many would be successful in that.

fozmcfc

As above, never mix purchases and balance transfers, unless both are for the same 0% period.

Seems some card companies, are pointing it out more prominently.

I have an offer on my Virgin card and the letter has it written clearly and not hidden away, something along the lines of "if you make purchases on the card, you will incur intrest charges, unless you clear the full balance, including the balanced transfer".

JosephWatkins

Yes, I remember reading that ages ago now.

The annoying thing is that I was blinded by the offer, sent directly to me, which certainly did not make it clear that if I took it up, I would be charged if I continued to use the card in the same way that I have done for, err..30 years. Maybe it's time I changed banks!

Cheers

rabbit_burrow

So the offer stated that it was 0% Balance Transfer, but the offer didn't make it clear that the 0% offer only applied to BT's and not card purchases?

I don't mean to come across wrong (text does not convey the tone, unfortunately), but I would say that the title of the offer was pretty clear. If it had said 0% on balance transfers and card purchases, then it would of course be unclear.

CLAPTON

JosephWatkins wrote: »

Yes, I remember reading that ages ago now.

The annoying thing is that I was blinded by the offer, sent directly to me, which certainly did not make it clear that if I took it up, I would be charged if I continued to use the card in the same way that I have done for, err..30 years. Maybe it's time I changed banks!

Cheers

you were sucked in by your own greed .. something for nothing

did you think they were offering the deal because you were a particularly worthy person?

time to learn that all 'good deals' have small print

by all means change bank but all such deals have the same small print

psychic_teabag

rabbit_burrow wrote: »

So the offer stated that it was 0% Balance Transfer, but the offer didn't make it clear that the 0% offer only applied to BT's and not card purchases?

I don't mean to come across wrong (text does not convey the tone, unfortunately), but I would say that the title of the offer was pretty clear. If it had said 0% on balance transfers and card purchases, then it would of course be unclear.

My reading is that OP realised that the 0% offer did not apply to new purchases, but assumed that he's still get the usual 40 days of interest-free period between purchase and payment date on statement. He was paying off the full amount of new purchases (ie the bit above the balance-transfer).

prowla

JosephWatkins wrote: »

Hi, recently got a letter from mybank offering 0% for 1 year on balance transfers to my existing credit card, which I took them up on. I normally pay all of this credit card each month, so started paying off the total less the transferred-in balance. I then found that I am charged interest from the day of purchase for as long as I have any outstanding balance (0% or not).

Of course this was hidden in the small print, which I didn't read, and I feel a bit of a fool. I class this as mis-selling. The offer was completely inappropriate for me on a credit card that I use for all my purchases, and which I pay off in full each month.

To be fair, they have offered to repay the interest, and suggested I "get another card" for my purchases, until the 0% period is up. Crazy. I've now transferred the 0% out (so I'm down the arrangement fee) to another card.

I'm sure this is mentioned somewhere here, but couldn't see it

Cheers

Yes, I had that with a Barclaycard some years back.
I just paid off the balance and cancelled the card.

fozmcfc

A number of people do fall foul of this.

Perhaps a way around it, would be that when a customer goes to do a transfer, it is made clear either online or over the phone, that any purchases already on the card or future purchases, will incur interest if you don't pay off the whole card balance, including the amount transferred.

Over the phone, it should be compulsory for advisors to tell customers this. Online it should be highlighted, with important read this above it and a tick box to confirm it has been read.

Yes there will be still be customers who don't read/listen or understand and ask for clarification, but it could cut down a number of customers falling for it.

JosephWatkins

CLAPTON wrote: »

you were sucked in my your own greed .. something for nothing

did you think they were offering the deal because you were a particularly worthy person?

time to learn that all 'good deals' have small print

by all means change bank but all such deals have the same small print

Well, that's one spin on it. Not a particularly helpful one though.

The thing I'm aggrieved about is not that I didn't get a good deal (it was similar to other balance transfer deals out there), but that I was suckered into a particularly bad deal by a bank I've used for many years.

JosephWatkins

fozmcfc wrote: »

A number of people do fall foul of this.

Perhaps a way around it, would be that when a customer goes to do a transfer, it is made clear either online or over the phone, that any purchases already on the card or future purchases, will incur interest if you don't pay off the whole card balance, including the amount transferred.

Over the phone, it should be compulsory for advisors to tell customers this. Online it should be highlighted, with important read this above it and a tick box to confirm it has been read.

Yes there will be still be customers who don't read/listen or understand and ask for clarification, but it could cut down a number of customers falling for it.

The person I spoke said that it would have been made clear on the phone, but I did it online, and yes, no doubt I missed reading the important bit, probably because it wasn't highlighted in red or somesuch.

I just don't think such an offer should even be made on a card that is obviously being used already for purchases.