Lloyds TSB Balance Transfer Fee Refund Offer - How Quick?

Fingerbobs

Has anyone taken advantage of Lloyds TSB's Balance Transfer Fee Refund Offer, which effectively reduces the BT fee from 3% to 1%?

The web site says the refund will be credited within 60 days, but I'm just wondering how long they actually take in reality?

I'm now over 40 days after my balance transfers completed, and the refund has not appeared yet, so I'm starting to get slightly itchy

Thanks!

[Deleted User]

It'll probably depend on your statement date so give it the 60 days.

zerog

Mine took 2 working days.

Fingerbobs

Just in case anyone else was watching this thread, the refunds appeared on my account today - day 53 after completion of the original balance transfers.

So it does take them a while, but not quite the full 60 days.

Joylove

I thought this deal seemed a bit too good to be true. Why would Lloyds go to the bother of refunding some of the BT fee instead of just having a low balance transfer fee to begin with? Surely something must be in it for them? Well, as I guessed, this is what it says in small(ish) print when I added a balance that I wanted to transfer over: "We charge a 3% fee on each balance transfer you make and charge you interest on this fee."
So Lloyds charge interest on the fee itself. So they charge interest on the 3% fee for the lifetime of the balance? This is a new thing, is it not?
I rang up and asked about this, and the guy on the line said that interest was not charged on the fee. He is mistaken though. This is a rather underhand way of getting extra money out of customers is it not?

Fingerbobs

Joylove wrote: »

I thought this deal seemed a bit too good to be true. Why would Lloyds go to the bother of refunding some of the BT fee instead of just having a low balance transfer fee to begin with? Surely something must be in it for them? Well, as I guessed, this is what it says in small(ish) print when I added a balance that I wanted to transfer over: "We charge a 3% fee on each balance transfer you make and charge you interest on this fee."
So Lloyds charge interest on the fee itself. So they charge interest on the 3% fee for the lifetime of the balance? This is a new thing, is it not?
I rang up and asked about this, and the guy on the line said that interest was not charged on the fee. He is mistaken though. This is a rather underhand way of getting extra money out of customers is it not?

My understanding is that the small print is correct in that they charge interest on the Balance Transfer fee as well as the Balance Transfer itself, but that interest rate is 0% for the first x months. So During your introductory period, you pay no interest at all (provided you keep up with minimum payments etc.)

I've only had one statement so far, but that statement showed zero interest for the first month.

I think it's just rather confusing wording, rather than being underhanded in any way.

zerog

Basically it means the fee is added to your balance, rather than a fixed fee. (Are late payment etc fees fixed or do they attract interest too? Never had one so I don't know!)

YorkshireBoy

zerog wrote: »

(Are late payment etc fees fixed or do they attract interest too?)

Here's what Halifax say...

We will not charge interest on the charges in conditions 7.1 to 7.6 until the 29th day after the day we give you notice that these charges are payable. We will then charge you interest on those charges, but we will not charge interest on that interest.

http://www.halifax.co.uk/creditcards/low-rate-no-fee/clarity-card/terms/

...but I don't know if 'them's the rules' or Halifax's own policy?

So in a nutshell, they won't charge interest if you settle them promptly.

And if you don't settle promptly they will charge interest at the 'simple' rate, ie they won't compound the interest.

Fingerbobs

zerog wrote: »

(Are late payment etc fees fixed or do they attract interest too? Never had one so I don't know!)

Only time I've had a Late Payment fee was when the Nationwide failed to collect my Direct Debit in time many years ago. My memory is hazy, but I *think* they charged interest on the fee, but I got the whole lot refunded anyway as it was their fault.

EDIT: Actually, thinking about it, the interest was probably on the balance, which they thought hadn't been paid in time, so possibly there was no interest on the fee itself. I remember the next couple of statements after the mistake showed interest charges and immediate reversals.