Rip of capitalone credit card

huddslad

I have a capitalone credit card and after checking my bill and reading the terms of conditions I have realised the credit card company is basically a legalised crook.

It says in the terms and condtions the following:-

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance.

If I clear the balance on my account say 3 days before the payment is due on the the 17th of the month then use the card the following day to buy goods of say 1000 pounds and dont pay the £1000 balance of before the end payment day on the 20th but pay it after on say the 25th then I will be charged interest on the full ballance for the month including the £1000 i spent on the 17th. Incredible day light robbery.

Are all credit cards the same.

molerat

Incorrect.
It is not a rip off.
If you do not clear the STATEMENT BALANCE in full you will be charged interest on all purchases on that statement and all further purchases from date of purchase.

All cards operate this way.

grumbler

huddslad wrote: »

...

It says in the terms and condtions the following:-

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance. ...

Is it that hard to quote the exact wording instead of retelling it incorrectly?

http://www.capitalone.com/media/doc/credit-cards/consumer-cards.pdf

How Can I Avoid Paying Interest Charges?
Each month you pay your “New Balance” in full by the due date, you will have a minimum grace period of 25 days with no interest charge on all new
1) purchases, 2) balance transfers, 3) special purchases, and 4) other charges. If you have been paying your account in full with no interest charges applied and you do not pay your next bill in full, prorated interest charges will be assessed. There is no grace period on cash advances, special transfers, or on any new transaction when there is an unpaid balance from a previous bill.
...
Interest Charges and Fees.
... In general, Interest Charges begin to accrue from the day a transaction occurs. However, we will not charge you interest on any new balances posted to the purchase Segment of your Account provided you have paid your previous balance in full by the due date.

EDIT: My apologies. It's not UK T&C. Thanks to molerat.

For UK T&C see https://www.capitalone.co.uk/creditcards/secure/application.jsf

Interest is charged from the date a transaction is debited to your account until repayment. However, no interest is payable on purchases if you pay in full the outstanding balance on your first statement by its payment due date. No interest is payable on purchases on subsequent statements if the outstanding balances on your current statement and the previous statement are paid in full by their respective payment due dates.

GingerBob_3

molerat wrote: »

Incorrect.
It is not a rip off.
If you do not clear the STATEMENT BALANCE in full you will be charged interest on all purchases on that statement and all further purchases from date of purchase.

All cards operate this way.

Correct, but it is a rip-off nevertheless.


Your best bet is to always pay off the full balance on the last possible date and take as much advantage as you can of BT offers. That way you're ripping them off.

huddslad

It is not hard at all and I quoted directly from my the terms on the statement, so your wrong on that score. I would attached an excert from my the terms on my statement if I could but these does not seem to be an attached file button. Sound like there are few people on this forum that work for the credit card companies to me. So far up the credit card companies backside.

grumbler

To post a picture you have to upload it to some other website, e.g. PhotoBucket, then use the button and the link to the picture.

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance

Even if this is the exact wording, your understanding/interpretation is incorrect.

If you don't pay the balance in full, you get charged interest on all transactions in the statement from the date of each transaction until it's paid off.

If I clear the balance on my account say 3 days before the payment is due on the the 17th of the month

Then no interest will be charged at all (assuming that the previous statement balance was zero or cleared in full and in time too).

then use the card the following day to buy goods of say 1000 pounds and dont pay the £1000 balance of before the end payment day on the 20th but pay it after on say the 25th then I will be charged interest on the full ballance for the month including the £1000 i spent on the 17th.

This is incorrect. No interest will be charged on £1000 either - unless you make new purchases and don't pay the next balance in full. Even in this case interest on £1000 will be charged for few days only.
Interest is charged only for the actual time of the borrowing and is waived if you pay balances in full. So you are getting up to ~55 days interest free credit on purchases.

Incredible day light robbery.

This is a bonus/benefit, not robbery. You should have asked here for a clarification instead of jumping to conclusions.
First you accused C1 of robbery.
Then you accused people of working for CC companies.
Neither of these accusations has any grounds. Is it not time to reconsider your attitude?

PeacefulWaters

huddslad wrote: »

It is not hard at all and I quoted directly from my the terms on the statement, so your wrong on that score. I would attached an excert from my the terms on my statement if I could but these does not seem to be an attached file button. Sound like there are few people on this forum that work for the credit card companies to me. So far up the credit card companies backside.

I've had lots of credit cards over the years.

90% of all my discretionary spending is by credit card.

I've never paid a penny in interest because I repay the balance on the statement in full before the due date. And I carry on spending once I've paid.

Your interpretation is wrong. Used sensibly a credit card is a fantastic budgeting tool that can cost you absolutely nothing.

SnowTiger

huddslad wrote: »

It is not hard at all and I quoted directly from my the terms on the statement, so your wrong on that score. I would attached an excert from my the terms on my statement if I could but these does not seem to be an attached file button. Sound like there are few people on this forum that work for the credit card companies to me. So far up the credit card companies backside.

I'm looking at my Capital One PDF statement and can't find this text you quoted on it:

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance.

The closest I can find is this:

If you do not pay off the full amount outstanding, we will allocate your payment to the outstanding balance in a specific order, which is set out in the allocation of payments section of the summary box on the reverse of the statement. The way in which payments are allocated can make a significant difference to the amount of interest you will pay until the balance is cleared completely.

I also can't find the text you quoted in the T&Cs, which are towards the bottom of this page. The T&Cs do contain this:

Standard purchases rate: an effective rate of 34.94% p.a. (variable), from the date of debiting a transaction to your account until repayment. No interest is payable if you pay in full the outstanding balance on your first statement by its payment due date. No interest is payable on subsequent statements if the outstanding balances on your current statement and the previous statement are paid in full by their respective payment due dates.

molerat

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance.

Last line in the "interest and charging information" box.

SnowTiger

if the account is not fully cleared interest will be charged on the total value of the statement not just the outstanding balance.

molerat wrote: »

Last line in the "interest and charging information" box.

Where?

molerat

Both my Cap1 World and Cap1 Luma have it on their statements. I don't have a box like above on my statements.