Santander 'unfair' interest

adindas

Dandelion1 wrote: »

No, we weren't late paying. Because we had not completely repaid the balance by the specified date ( underpaid by the amount of the minimum payment), we were charged interest on the whole balance for the month from the previous statement date to the date we paid the 'partial'payment. If the minimum payment had also been paid or we had paid our partial payment within 5 days of the due date of the D min payment we would not have been charged interest.

Did you read molerat post carefully ??
When is the interest free period end ? When is the payment / minimum payment due date ?? What is the date of the statement ?? Did you make the full payment before or after the date of the interest free period end ??

As stated above it is different with the due date of minimum payment will be taken as well as statement date.

The best approach without wasting too much time to read the T&C or to do some calculation is to clear the WHOLE balance using FPO, ignoring minimum payment about a week before the interest free period end. It will guarantee that you will not pay a penny interest. You agree and sign the T&C, Learn it and move forward.

Alternatevely try to write apologetic, polite but firm in stating the point that it was clearly your intention to pay in full and ask (don't demand) for a refund. If this happens the first time they might refund the interest as a gesture of goodwill.

In comment to fairness, keep in mind fairness works both ways. Nobody likes to pay interest, but calling unfair after you have benefited interest free during the interest free period. and now they are acting to what you have agreed in the T&C you call it unfair ???

[Deleted User]

Dandelion1 wrote: »

I like the idea of complaining to the FOS so that Santander don't make any money out of us though.

Although perhaps unfair on other Santander customers who will end up paying for it.

Anthorn

My response is short but not so sweet. You agreed to it so it cannot be unfair.

chattychappy

All very annoying, but I agree. You're on the hook for this.

DDs are sold as making life easier. Unfortunately they do add a layer of complexity and people often trip up. Typical scenarios people have encountered include:

1) DDs get set up, but not in time for the next payment due. Hence people get late fees/reported to CRAs/promo deals removed. (But often reinstated on request.)

2) DDs expire if they are not used for a while (?13 months).

3) Interaction with manual payments is complicated and varies depending on when the manual payment is made, the balance outstanding, the particular CC involved.

4) There can be problems when you move your current account with DDs failing during the changeover period.

5) In the case of fraud on a CC, unless you catch it in time, you can end up with a larger-than-expected amount being DDd out of your current account which might cause other payments to fail. Not having a DD acts as a firebreak.

6) If you're paying interest, a DD will be taken around the time of the "due by" date, even if you have cash available in your current account earlier. This means you are unnecessarily paying interest. Better to pay manually as soon as you have the funds available rather than letting events take their course on DD day.

Personally I avoid them.

frank777

Dandelion1 - my Santander credit card Agreement indicates :huh:

17 Payments and interest
17.1 You must make at least the minimum monthly payment each month, to be received by us by the payment due date shown in your statement. Payments will reduce your balance only when they are credited to your Account. Your statement will give you guidance on when to make payments by different methods so that they reach us and can be added to your Account on time. We will treat any payment you make (or part of it) as paying off any arrears on the Account first before treating it as the minimum monthly payment due on the Account.

In plain English? ''if you don't pay the full outstanding amount, the minimum monthly will be taken''

Anthorn - ''my response is short but not so sweet. You agreed to it so it cannot be unfair''