Santander Credit Card

Keva1961

I have a Santander Credit Card and for several months I have noticed that despite not using the credit card my minimum payment has continually increased. On looking at the account statement more closely it appears that every time I make a payment on my account each month, this payment is treated as a "transaction" which means although I am paying off the account the interest Sanatnder are charging is increasing (not reducing) and my monthly payment they are requesting is increasing each month.

Should Santander be able to charge additional interest on a "transaction" when in actual fact the "transaction" is a payment towards paying off the account?

I have not spent anything on the card for 2 years or more but the monthly payment and interest continues to increase.

My other credit cards do not charge in this way!

[Deleted User]

They won't be charging interest on a payment. Transaction just means soone kind of movement on the account.

What minimum payment calculation are you on? Does your account predate the move to 1% plus fees and interest?

Keva1961

The MP States

" The minimum payment will be the sum of (i) the amount of any interest, payment protection insurance premiums, annual fee and default fees charged to your account plus (ii) 1.00% of the remaining balance shown on your statement plus (iii) the amount of any arrears which are payable immediately; subject to a minimum of £5.00 or the full balance if less than £5.00"

As regards predating the move to 1.00% when was that? I have had my Santander Credit Card for around 6 years.

[Deleted User]

The new min payment came in around 3 years ago. It was only required for new accounts, and it was up to inidividual lenders as to whether or not to change min payments for existing customers. You'll be on whatever is on your statements.

If you post your last few statement balances and min payments, we might be able to figure it out. The number of days between statements can also cause fluctuations in the min payment.