Current Balance vs Balance on Statement Date

Vortigern

seabass90 wrote: »

I just phoned Lloyds who told me I need to pay the full (£400ish) amount to avoid having to pay any interest

I think you have been mis-informed by Lloyds. I would pay the online current balance minus any purchases you made after the statement date.

Or pay the statement balance minus the refunded amounts. This should be the same sum as above. Work it out for yourself.

You may, however, prefer to play safe and believe what Lloyds told you.

Superscrooge

seabass90 wrote: »

Just incase anyone else stumbles across this thread looking for answers, I just phoned Lloyds who told me I need to pay the full (£400ish) amount to avoid having to pay any interest, but confirmed I will then be in credit at some point. To be fair they've said that when this happens, I can phone them and they can essentially move the credit over to my debit card which is good.. although this all seems a bit of effort, think i'll stick to my debit account for shopping purchases in the future!

I think the bank has given the best answer. Just pay the balance on the statement to avoid interest payments and then when the refunds are credited to your account your next months bill will be lower than it otherwise would have been.

Unless you have a 0% or other low interest deal, borrowing on credit cards is very expensive.

planteria

Vortigern wrote: »

Or pay the statement balance minus the refunded amounts. This should be the same sum as above. Work it out for yourself..

or just pay by Direct Debit.. you might need a small float in your current account if you are getting refunds which take a while, but you can rely on the card provider to take the right amount by DirectDebit and therefore not have to worry about it.

KJSmith

Vortigern wrote: »

I think you have been mis-informed by Lloyds.

He/she hasn't. You would have to pay the statement balance in full to avoid interest.

anamenottaken

This is where LBG may act differently from some other banks.

I have a Halifax card and a Barclaycard account, both with DDs to pay in full.

The Halifax account seems to operate in the same way as Lloyds are suggesting - they take the full amount even when refunds have been credited to the account before the DD would be actioned.

Barclaycard, on the other hand, seem to deduct refunds before calling the DD.

Vortigern

On the 8th December, when the statement was produced, the OP owed Lloyds £423.

On the 26th December after some refunds had been processed, the balance owing is only £294.

Why should the OP pay more than he owes?

If he pays £423 the account will be in credit, which may be against the terms and conditions.

If he was paying by DD, the DD amount would be reduced to just clear the outstanding balance, and not put the account in credit.

Unfortunately it's too late to make this payment by DD, but it would be better to use DD in future.

grumbler

Vortigern wrote: »

On the 8th December, when the statement was produced, the OP owed Lloyds £423.

On the 26th December after some refunds had been processed, the balance owing is only £294.

Why should the OP pay more than he owes?

Because not all CC terms follow common sense and can be be explained by simple logic.

If he pays £423 the account will be in credit, which may be against the terms and conditions.

If he was paying by DD, the DD amount would be reduced to just clear the outstanding balance, and not put the account in credit.

As said above, it's not the case for all CCs. Some still take the full statement amount that can put a CC in credit.

Unfortunately it's too late to make this payment by DD, but it would be better to use DD in future.

Absolutely, but unless you know how exactly this particular provider operates you have to be prepared to the full statement balance taken by the DD.

TadleyBaggie

grumbler wrote: »

Some still take the full statement amount that can put a CC in credit.

Sainsburys did this to me. Had a balance of £1427, so did a £1400 balance transfer plus a debit card payment of £40. Two weeks later Sainsburys took the full £1427 putting me almost £1000 in credit.

MDMD

TadleyBaggie wrote: »

Sainsburys did this to me. Had a balance of £1427, so did a £1400 balance transfer plus a debit card payment of £40. Two weeks later Sainsburys took the full £1427 putting me almost £1000 in credit.

I had the opposite happen on my Halifax Clarity, had a bill of 400 or so, did a balance transfer to my Santander 123 for the interest free period and Halifax treated it as a payment in full (as the actual balance transfer was higher than statement bal) so took nothing (full payment DD set up). It cost me £5 as the DD was one of my DDs for the Halifax current account reward psyment.....:mad:My fault as got timing wrong but now have an extra DD on the account just in case.

redpete

Vortigern wrote: »

Why should the OP pay more than he owes?

Because of the way that some credit cards work. Lloyds have told the OP that this is how they work, I know from experience that this is the way that Tesco work. Their systems expect the full statement balance to be paid to avoid interest regardless of subsequent refunds.