Capital One Minimum Payment Changing

John1993_2

dotdash79 wrote: »

Perhaps when companies make these changes they should show real world examples on how this will work compared to the past way.

There is only so much hand-holding that a company should be expected to do, and this really goes beyond that. They've given the figures to allow an exact calculation, what more do you need?

I can guarantee if they provided worked examples that people would be on here saying "The example said £84, but my minimum is £255. Why the difference?!?!"

Hominu

John1993 wrote: »

There is only so much hand-holding that a company should be expected to do, and this really goes beyond that. They've given the figures to allow an exact calculation, what more do you need?

Well, obviously they should provide personalised illustrations of expected costs. So it would be "Your last bill had a minimum payment of £xxx. Under these new rules, your minimum payment would have been £xxx, a difference of £xxx."

callum9999

Spendit_Sue wrote: »

You are so right, Dotdash, but these companies seem to revel in their customers confusion! Of course it can often result in customers having to telephone the company to find out more - and, of course, the company pockets the cash from these calls!!

They aren't "revelling" in your confusion... I honestly do not understand how they could have explained that change any simpler. We all miss the obvious sometimes (me included - so I'm not criticising you specifically) but thats primary school maths at most. It's not unreasonable for them to expect you to be able to work it out. Not to mention if you couldn't do so you could just pick up a phone and they'd gladly work it out for you.

iancrt

If you are just paying a card off at minimum payment you will pay more monthly, but less interest overall.

Previously 3% of balance after interest (36% annual):
7000 + 3% = 7210. min payment 3% of this = 216.3. new balance 6993.70

New 1% balance + interest:
interest: 3% of 7000 = 210. 1% of 7000 = 70. min payment is 280. new balance 6930.

so basically they are making us pay more, but the 'more' will come straight off the capital.

I would guess if you are not happy you could freeze the card and continue to pay it off at the old method as it is a change of terms.

(all % rounded for ease of example)