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SR1
SR1 Posts: 147 Forumite
Hi my husband has a natwest card, which is paid off in full each month. However this month I have paid the wrong amount, the balance was £1,895.21 and I paid £1,820. I was expecting a small amount of interest but they have charged £36.20
Also,he stupidly pays the payment protection on it which I keep telling him he doesn't need, last month it has cost him £15, this month £21. What is this for , seems a total ripoff?

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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    They've charged you interest on the money (the full balance on a daily basis) you'e borrowed, as you didn't clear in full. This is standard on all cards. There will also be a small amount of trailing interest on your next statement.

    PPI is to protect your min payments in the event of accident, sickness etc. It's not generally considered good value. Cancel it if you don't need it.
  • StuC75
    StuC75 Posts: 2,065 Forumite
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    Unless the previous balance is paid in full then interest is charged on the full amount for those days (36.20 paid on the full 1,895 rather than just the £75 short paid).. This will also roll into next month too, so would be best to arrange that payment asap..

    Payment Protection, is exactly that... if he doesnt want it then ask for it removing..
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    SR1 wrote: »
    Hi my husband has a natwest card, which is paid off in full each month. However this month I have paid the wrong amount, the balance was £1,895.21 and I paid £1,820. I was expecting a small amount of interest but they have charged £36.20
    Standard procedure. Your purchases attract interest from day one. If you pay in full they waive this interest.

    If you ALWAYS pay in full, and always will, then consider setting up a direct debit. No scope for error with the payment total then.
    Also,he stupidly pays the payment protection on it which I keep telling him he doesn't need, last month it has cost him £15, this month £21. What is this for , seems a total ripoff?
    If you know he doesn't need it you must know what it's for?

    I've lost track of current prices, but it used to cost around 79p per £100 of statement balance...which is near enough £15 on £1,895.21. Is this month's statement balance a little higher than last month's? If so, that would explain why the 'premium' has increased.
  • SR1
    SR1 Posts: 147 Forumite
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    Thank you ,I am going to cut it up I think, hate them
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
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    SR1 wrote: »
    Thank you ,I am going to cut it up I think, hate them

    That won't close the account.
  • R_P_W
    R_P_W Posts: 1,505 Forumite
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    SR1 wrote: »
    Thank you ,I am going to cut it up I think, hate them

    Or just use it and pay the correct amount each month?
  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    SR1 wrote: »
    Thank you ,I am going to cut it up I think, hate them
    Something of an over-reaction for your error.
  • brendon
    brendon Posts: 514 Forumite
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    To give it some perspective, if this mistake happened just once per year, it works about 2% interest you've paid. That's still an incredibly good rate to borrow at.
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