Bill Deferred Finance Charges

CloudStrife84

Hi there,

I'm hoping someone can help! I have a Vanquis card which I recently transferred a balance from to another card with a better interest rate (but not the whole balance), When my next statement has come through I can see the usual interest charge which was £13 and they've added this bill deferred charge which was just over £15!

I've seen these on my statement in the past but they've usually only been a few pound so figured it was something legit. I've read one forum on this subject that has said that these charges are correct and another that states that there is an error on Vanquis's system which causes this and that I would only have to ring them to get it refunded. Is anyone able to clarify this please?

If this is some kind of error then I may have to request copies of all of my statements to get all of these charges refunded as it'll probably add up! £15 seems really steep in any case when the interest is only £13.

Thanks in advance for your help!

grumbler

It's hard to believe that 'deferred' is the only information you have.
All charges must be explained explicitly in the statements or notices of charges.

jonesMUFCforever

Why would you have to request copies of statements - surely you keep the ones sent to you?
I wonder if thes relate to either overlimit or late payments?
If so don't waste your time - they are legitimate charges.

CloudStrife84

Hi, thank for replying. Sorry I wasn't very clear, the charge is called Bill Deferred Finance Charge, Vanquis do it quite a lot apparently but i'm not sure if it's correct.

CloudStrife84

I don't have copies of statements as i'm paper free and the online statements on go back a 6 months. It definately not late payment fees, i've never missed one payment.

grumbler

If you google for "Bill Deferred Finance Charge" you'll see that this is how Vanquis call the interest on the previous statement transactions.
The interest is calculated on daily basis, but isn't added to the current statement and is waived if you pay the statement balance in full before the due date. If you don't pay the balance in full it is added to the next statement as 'deferred'.

>> Help with understanding my vanquis account please ...

SnowTiger

CloudStrife84 wrote: »

Hi there,

I'm hoping someone can help! I have a Vanquis card which I recently transferred a balance from to another card with a better interest rate (but not the whole balance), When my next statement has come through I can see the usual interest charge which was £13 and they've added this bill deferred charge which was just over £15!

I've seen these on my statement in the past but they've usually only been a few pound so figured it was something legit. I've read one forum on this subject that has said that these charges are correct and another that states that there is an error on Vanquis's system which causes this and that I would only have to ring them to get it refunded. Is anyone able to clarify this please?

If this is some kind of error then I may have to request copies of all of my statements to get all of these charges refunded as it'll probably add up! £15 seems really steep in any case when the interest is only £13.

Thanks in advance for your help!

Interest accrues on purchases from the date they appear on your statement.

However, if you pay your statement balance in full, that interest is waived.

If your previous statement balance was zero and, say £300, of purchases appeared on your next statement, Vanquis wouldn't know whether you would pay it in full or not, therefore don't charge any interest.

If you don't pay it in full, the interest that accrued appears on your next statement as deferred interest. Plus an interest charge for the previous month.

This is how almost all credit cards work. Vanquis is, I think, unique in listing the deferred interest separately. Other card issuers lump the deferred interest and interest together.

If you've been carrying a balance on your card for a while, then clearing it, then carrying a balance again, I would expect to see deferred interest appear on several of your statements.