No interset free period on the Balance transfer fee?!

maggotsquibb

I did a balance transfer of £2000 to a Tesco mastercard 2 months ago, to make use of the interest free period. However, I have received a statement today which says I will be charged interest of £27.47 next month, even though I have not used it for any new purchases. I phoned customer services and they total me that the transfer fee of £40 is only interest free for the first 3 months, than it acrues interest. There is no way of paying the £40 off without opaying off the £2000 first?!

Has anyone else come across this before, I am stunned! I think my only way out is to do another balance transfer...QUICKLY!!!

YorkshireBoy

Very strange. The interest (at their typical rate) on £40 is less than 50p per month.

The interest on £2,000 would be around £25. Is it possible that you've paid late and they've withdrawn the 0% rate and put you back on standard APR?

jonesMUFCforever

Something is wrong here.
You would not get charged £27.47 interest on a £40 transfer fee.

It would be pennies at most.
Can you recheck and post back. Are you sure that you have not made a late payment and that they have taken the 0% off you?

Bokkens

Welcome to MSE.
Double check the T&C's online and check that what you have been told is correct.
I would still phone them and grovel a little saying it wasn't made perfectly clear to you and you would like to pay the outstanding charge now so as to avoid any further interest charges.
If this doesn't work be prepared to BT to another card although this also has it's own problems with charges and extra BT fee's it may be worth staying put and paying of the debt asap.
Just log this in your memory cells and don't buy a damn thing from Tesco's.

maggotsquibb

Thank you all for your responses, I really appreciate your comments. I had a few problems with late fees with the 1st 2 months as I never received my first statement so didn't know when to pay and then the direct debit didn't go through in time. Anyway, I have been in touch with them about these issues and they have agreed to wave any late fees which would have been £12 each time. I am fully up to date with my minimum payments at this point.

I phoned customer services again this morning and spoke to someone else. After lots of um-ing and ah-ing, they are now saying they don't understand and think it is an error. They have basically told me to ignore it? This doesn't fill me with much confidence, so I think I will phone back a bit later and get a 3rd opinion just in case. Not the most professional service!