0% Period Cancelled due to missed payment - Interest Charged

soliveruk1

Hi,


My wife applied for a 0% interest free credit card (15 months) in September 2014 to help with our outgoings. The best card at the time was from American Express. We completed the application and started spending on the card. We noticed that a missed payment charge appeared on the account so contacted Amex immediately. The advisor suggested the DD had not been set up correctly and kindly credited our account with a refund. The problem was resolved.


We have spent a lot on the card since, always making the minimum payment. The 0% period is due to expire so recently made plans to pay off the full amount. I noticed interest charges had been applied several times and contacted AmEx. They have said that as the DD had not been set up correctly in the first instance, the 0% period had been cancelled. This was not mentioned at the time although I'm sure it will appear in the small print of T&C's. The DD details were provided during the online application made via MSE website.


Anybody had a similar experience and do I stand any chance of getting the interest back? (It has stacked up to £800 so far.)


Thanks

[Deleted User]

You could phone and apologise and ask for so!e goodwill. But I think after such a long period, your chances are slim. Did you not check your statements?

uncreative

Unfortunately the 0% deal comes with some responsibility and conditions attached and missing payments is the key aspect here. Your only chance is to plead for some kind of goodwill gesture. Sorry to say it but you should really check your statements each month. If you had caught the first interest charge then you would have been more likely to get it reversed, effectively by going onto your "last chance".

We missed a payment on a 0% card due to the RBS/Natwest computer issue a while back and managed to get the 0% reinstated as we paid the amount a couple of days later but were told it was exceptional circumstances at the time.

If I were you I would also check your credit history to see if the late payment has been recorded on your credit file.

soliveruk1

Statements were sent to wife's email (rarely checked) and I periodically reviewed online. Obviously didn't see 'interest charged' until recently as although I'm at fault, in my mind it was interest free so didn't analyse. Expensive error but hoping for some good will,

Thanks for your thoughts.

chattychappy

Any explanation as to why the DD wasn't set up? Was this an error on Amex's part?

It is standard practice for these offers to get cancelled if you are late with a payment or go over limit. In fact, it's probably part of the business model that during the lifetime of these offers a proportion of people will mess up and end up paying full rate interest. DDs help the CCs - if people don't need to check their statements to make a manual payment ("DDs take out the worry of missing a payment!") then they are less likely to check them at all and notice something going wrong.

So first off, I would ask them as to why the DD wasn't set up since you gave them details during the application (assuming you really did!). This might have been a timing issue - but was this made clear to you?

Else I would appeal to their goodwill - people have had interest reversed in these cases, even some time after the event. Point at that the DD has operated correctly ever since.

I am sure there will come a time (not yet) when it's decided that it's "unfair" to remove these offers for a one-off mistake. It's a disguised form of penalty and the effect can be disproportionate to the cost to the lender of the original breach. So if you feel strongly and can't do a deal on the phone, then follow up with a written complaint along these lines. The CC may prefer to refund rather than risk a kerfuffle.

Missus_Hyde

chattychappy wrote: »

Any explanation as to why the DD wasn't set up? Was this an error on Amex's part?

Presumably, Amex had all the correct details to set up the DD? If so and the error was on their part for not setting up the DD correctly to enable them to collect the payment, then I'm afraid I wouldn't be appealing to them for a "goodwill" gesture, I would be on the phone reading them the riot act, for not operating their system correctly and then charging extra because of their mistake!! The fact that they had the means to take the payment and didn't is not the OP's fault if they hadn't set up their DD instruction correctly. (However, before giving them a b*****king, I would check my records carefully and make very sure that the error was on their part, not mine!! )

bigadaj

Missus_Hyde wrote: »

Presumably, Amex had all the correct details to set up the DD? If so and the error was on their part for not setting up the DD correctly to enable them to collect the payment, then I'm afraid I wouldn't be appealing to them for a "goodwill" gesture, I would be on the phone reading them the riot act, for not operating their system correctly and then charging extra because of their mistake!! The fact that they had the means to take the payment and didn't is not the OP's fault if they hadn't set up their DD instruction correctly. (However, before giving them a b*****king, I would check my records carefully and make very sure that the error was on their part, not mine!! )

Not really very useful, shouting at some customer service rep isn't really going to help anyone is it.

Best solution is probably for the OP to raise a formal complaint and then leave them to investigate. Not checking your statements for over a year doesn't really reflect well on anyone running a credit account, and means it is less easy to have sympathy even if this is the providers fault.

HelpfulTips

As previously mentioned it is part of the terms attached to balance transfers and promotional spending rates, however, many companies may surprise you. Although you should have checked your statements, it is best to contact the company and raise it as a complaint, remain polite and accept your error, and see what happens. They would almost certainly reinstate the offer, and many companies will actually refund all the interest paid. Hopefully you'll get the answer you want, best of luck

Missus_Hyde

bigadaj wrote: »

Not really very useful, shouting at some customer service rep isn't really going to help anyone is it.

Best solution is probably for the OP to raise a formal complaint and then leave them to investigate. Not checking your statements for over a year doesn't really reflect well on anyone running a credit account, and means it is less easy to have sympathy even if this is the providers fault.

Sorry, I don't agree!

Certainly make a formal complaint as well, but primarily if the fault lies with the CC company then it's up to them to sort it out and not just withdraw the 0% interest rate, especially as the OP brought the error to their attention as soon as they realised that the payment hadn't been taken and had been told by the "customer service rep" that the problem had been resolved.

bigadaj

Missus_Hyde wrote: »

Sorry, I don't agree!

Certainly make a formal complaint as well, but primarily if the fault lies with the CC company then it's up to them to sort it out and not just withdraw the 0% interest rate, especially as the OP brought the error to their attention as soon as they realised that the payment hadn't been taken and had been told by the "customer service rep" that the problem had been resolved.

Fair enough were all different.

The OP may have brought it to their attention initially but not checking your statements for over a year after that is shockingly poor, would hope that you would check them more frequently.

takman

The OP has been paying the card off every month for over a year happily paying the interest so I think it's unlikely that they can then dispute the charges and get much back.
If I ever have a 0% card I always get the balance to the nearest £10 by manual payment then if any interest or other charges are added it is very easy to see.