Santander Interest Calcualtion

backpacker07

Hi,

I have a question about the method Santander use to calculate interest on their credit cards

I have a Santander credit card which had a statement balance of £5000 at the end of August, due to making a typo when entering the payment details I was £90 short paying the balance in full. I paid the £90 off 18 days after the due date and the entire balance was cleared.

I expected to be charged interest on the £90 I had not paid but have just checked my statement and found an interest charge of £168.76. I phone Santander and was told that if you do not pay off the balance in full they charge you interest on the whole balance not just the bit you haven't paid off.

Has anyone encountered this situation before and has anyone had any success in getting Santander to refund the interest charges

Any help would be much appreciated

Thanks

grumbler

backpacker07 wrote: »

I have a Santander credit card which had a statement balance of £5000 at the end of August, due to making a typo when entering the payment details I was £90 short paying the balance in full. I paid the £90 off 18 days after the due date and the entire balance was cleared.

I expected to be charged interest on the £90 I had not paid but have just checked my statement and found an interest charge of £168.76. I phone Santander and was told that if you do not pay off the balance in full they charge you interest on the whole balance not just the bit you haven't paid off.

You pay the interest on each purchase since the transaction date till the payment date. Then you pay 18 days interest on the remaining £90.
Also, you have lost interest-free period on your next billing month purchases.

pvt

grumbler wrote: »

Also, you have lost interest-free period on your next billing month purchases.

Why?

So long as he pays the statement balance in full next month, they will be interest free.

grumbler

Terms and Conditions

4.5 To decide whether to charge interest on Purchases we will look at how you managed your a ccount in the previous month:
■ If you paid your a ccount balance on your last statement in full by the payment date, we will assume you will do so the following month and so will not include interest on any new Purchases in your next statement. If you then pay the balance on that statement in full, no interest will be charged on those Purchases . If you do not, we will charge interest on those Purchases from the date they are added to your a ccount and will add this to your next statement.
■ If you did not pay the a ccount balance in full by the previous payment date we will charge interest on the amount of all Purchases from the date they are added to your a ccount and will add this to your next statement.

It's the same for all CCs

thenudeone

All CCs work exactly the same way.

If you don't pay the FULL BALANCE off by the due date, there is no interest free period on purchases.

You will still be charged interest on those purchases even if you pay next month's statement in full, so the sooner you pay the full balance next month, the better. You don't need to wait until the due date (about three weeks or so later).

After paying the balance in full for two consecutive months, the next statement will not show any interest charges.