Interest on full statement balance

chattychappy

Most of mine seem to - and when the balance is mixed, listing each balance separately.

But in any case, they are meant to notify you in writing (which can be on the statement) in advance of a promo ending. As it happens, Sainsbury's have just done that with my 0% on purchases promo which ends April 14th.

blink18

Voyager2002 wrote: »

You can only involve the Ombudsman once you have made a complaint and it has been rejected.

that's simply not true

Nearlyold

blink18 wrote: »

that's simply not true

It's more true than not - if you go to the Ombudsman before complaining to the company the Ombudsman will simply pass your complaint to the company for them to deal with.
Once your complaint is with the company the Ombudsman will look at the complaint when you have had a final response if you are not satisfied or after 8 weeks if you have had no response

grumbler

blink18 wrote: »

that's simply not true

What exactly? Once or rejected?

Just replace 'rejected' with 'you are unhappy' and it will be 100% true:

how to complain

1. talk to the business first

First, give the business you’re unhappy with a chance to put things right. They have up to eight weeks to give you an answer.
If you’d like us to contact them for you, just get in touch.
2. tell us if you're unhappy?

If the business doesn't answer within eight weeks – or you’re unhappy with what they say – get in touch with us.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

[Deleted User]

chattychappy wrote: »

Well the OP hasn't been back.

He only posted a day ago!

tonyb47

Yes - sorry for not having been back, been away for the bank holiday!

I'm not sure I completely explained the situation properly:

1. I transferred a balance at a rate of 0% which expired 29 February
2. Balance on statement date of 24 February : £1,995
3. Payment received on account 28 February : £730 (outstanding balance £1,265)
4. Payment received on account 7 March : £1,200 (outstanding balance £65)

None of this applied to purchases or the "56 day thing". What I'm saying is that when the balance transfer rate of 0% expired (29 Feb), the balance on my account was £1,265. The balance remained at £1,265 for a week (give or take) when it was reduced to £65. If interest is calculated on a daily basis, I would expect to be charged interest at 29.9% APR on £1,265 for 1 week then 29.9% on £65 for the remaining 3 weeks to the statement date. I have, however, been charged interest on the full £1,995 for 4 weeks (by my rough calculations).

I'm not for a moment suggesting I shouldn't have been charged interest at all - they have a business to run!

I'll be honest, I haven't read the terms and conditions I signed up to, but I genuinely thought interest charged on a daily basis would mean just that. I understand how credit cards work in the main (with purchases and payment dates) and it may be that it's just an expensive lesson learnt, but (coming from a strong financial background, which I'm sure some may find amusing - please save your key tapping, I've made the jokes to myself already :-)) I find it difficult to see how they can justify how this works.

If this is the way it works and the world and law is happy with it, then I'll be twice shy next time, just wondered if it was right.

Thanks for everyone's input and thanks in advance for any further information.

zagfles

tonyb47 wrote: »

Yes - sorry for not having been back, been away for the bank holiday!

I'm not sure I completely explained the situation properly:

1. I transferred a balance at a rate of 0% which expired 29 February
2. Balance on statement date of 24 February : £1,995
3. Payment received on account 28 February : £730 (outstanding balance £1,265)
4. Payment received on account 7 March : £1,200 (outstanding balance £65)

None of this applied to purchases or the "56 day thing".

What do you mean by this? Did you spend on the card after the statement date of 24 Feb? If you did you will normally be charged interest on that spending from the transaction date to the next statement date, especially as it appears you didn't pay the balance in full.

You won't have been charged interest on money you no longer owe, that would be very unusual.

grumbler

tonyb47 wrote: »

1. I transferred a balance at a rate of 0% which expired 29 February
2. Balance on statement date of 24 February : £1,995
3. Payment received on account 28 February : £730 (outstanding balance £1,265)
4. Payment received on account 7 March : £1,200 (outstanding balance £65)

.... What I'm saying is that when the balance transfer rate of 0% expired (29 Feb), the balance on my account was £1,265. The balance remained at £1,265 for a week (give or take) when it was reduced to £65. If interest is calculated on a daily basis, I would expect to be charged interest at 29.9% APR on £1,265 for 1 week then 29.9% on £65 for the remaining 3 weeks to the statement date....

I'll be honest, I haven't read the terms and conditions I signed up to, but I genuinely thought interest charged on a daily basis would mean just that.

If you are absolutely sure that 0% expired on the 29th, then you expectations were correct and the interest should have been less that £10.

Check the facts and complain again. If they fob you off again with "it's part of their terms and conditions", ask what T&C and what part exactly. Then, if needed, complain in writing.

zagfles wrote: »

What do you mean by this?

That the prevailing interpretation of the OP was incorrect.

zagfles

grumbler wrote: »

If you are absolutely sure that 0% expired on the 29th, then you expectations were correct and the interest should have been less that £10.

Check the facts and complain again. If they fob you off again with "it's part of their terms and conditions", ask what T&C and what part exactly. Then, if needed, complain in writing.
That the prevailing interpretation of the OP was incorrect.

It seems incredibly unlikely that the bank were charging interest money no longer owed. Which is why I asked the OP to clarify that he did not spend anything on the card after the Feb statement.

People do sometimes mistakely assume a credit card balance is what was on the last statement minus payments made, and purchases only appear on the balance at the next statement. Not true - purchases are part of the balance as soon as they're made.

chattychappy

Yep. But bear in mind my experience above - on taking up the offer, the operator typed the wrong date into the system.