Trickery! New Interest Charges on 0%

Hjfrdmd

I have recently moved my balance of just under £5000 to a cc with RBS. As I expected, I was charged a handling fee of approximately £150. When I received my first statement, I was confused as to why I had a "interest charge" of £1.78 on my account, so I called them. Apparently, because they cannot charge interest on my balance, they charge interest on the fee until it is cleared! I pay £50 a month off my card, so I will have at least 3 months of interest, possibly 4 once they add the charges on! Outrageous!!!

Atidi

Hjfrdmd wrote: »

I have recently moved my balance of just under £5000 to a cc with RBS. As I expected, I was charged a handling fee of approximately £150. When I received my first statement, I was confused as to why I had a "interest charge" of £1.78 on my account, so I called them. Apparently, because they cannot charge interest on my balance, they charge interest on the fee until it is cleared! I pay £50 a month off my card, so I will have at least 3 months of interest, possibly 4 once they add the charges on! Outrageous!!!

Yes, if the card offers you 0% for balance transfers, it only applies to the balance transfer, not any additional fees or transactions that occur on the account.

You should have been advised of the fee when you applied for the BT.

By adding the fee to the £5k BT (and assuming no other transactions were on the account) then your balance would have been £5150 plus any applicable interest.

Your minimum payment would have been any interest plus 1% of the outstanding balance (£51.50) so if you only paid £50, you might get a late payment fee as well!

Your bill should have indicated the amount of interest you would incur if you only paid the minimum payment on the account (and didn't have any other additional transactions during the month)

I don't suppose you could post a pic of your bill could you so we can all see what it says, could you? :cool:
(Obscure personally identifiable information first)