Query Credit Card "High to Low" Repayment Allocation

LJB290

I am currently trying to get to the bottom of a mystery with my credit card provider regarding my credit card interest rates and how payments have been allocated over the years. I think they might have been allocating repayments Low to High % instead of the other way round and wondered if anyone had any thoughts about my situation?

I am unable to see my statements online at the moment and am a little suspicious about this but apparently it is due to a new card being sent to me with a new number (not something I have requested).

To help explain, I have copied my letter to them below:

I refer to an email that I sent to the Customer Service team on Saturday 14/01/17 regarding a query on my credit card account.

As suggested in the return email from xxxxxxx, I phoned the Customer Service department today (16/01/17) to find out more information.
I was on the phone for almost an hour but unfortunately we were unable to sort out the query in this time. I have been promised a call within 5 days.

I do not currently have access to online statements as apparently a new card, with new number has been dispatched, therefore I am presently barred from seeing past statements.

I have been told that I currently have 3 rates of interest on my credit card account of 15.9%, 15.9% and 9.9%. I’m not sure why two of the rates are the same. My paper / online statements have never displayed the various interest rates on my account (hence the call to customer services on 14th January to find out).

I apparently have just £15.40 left to pay off my lowest rate at 9.9%. I think a mistake has been made with regards to payment allocations. The Credit Card Act 2010 clause states that allocation of repayments should be “high to low” so I would expect that the balance transfer at 9.9% would be at the same level (in £) as it was when I took the offer and the higher rates of interest should be allocated and paid off first.

As my query has been looked into on the phone so far, I wanted to put my requests in writing.

Please can you show me how you have distributed payments to my various interest rates since 2010?

I would be very interested to hear your thoughts about this.
It seems to be taking them a long time to look at what they have in front of them and they have blocked access to my online statements.

Thank you in advance.

[Deleted User]

While not impossible, it's highly unlikely they have allocated it incorrectly, as it is automated and not a manual process.

However, without details of the monthly sub balances, it's impossible to say.

Who is the provider?

LJB290

The provider is Nationwide.

The interest rates have never been shown on my statements which I think seems rather strange.
I don't remember exactly when I took the balance transfer offer at 9.9% (but now can't see my statements online). I'm pretty sure that this should still be at the same level (in £'s) as it was originally.
I don't know why I have two other rates of 15.9% - apparently one is the standard rate so I don't understand why there is another rate of 15.9%.

Surely my higher interest rates should be repaid first (high to low) therefore why do I have £15.40 at 9.9% and the rest of the balance (several thousand) at 15.9%?

I guess its just a waiting game to see what they come up with.....

Many thanks

[Deleted User]

You'll have multiple rates on a card - cash, purchases, BT, promos for each of those, sometimes multiple promos.

Some of these rates will be the same.

SuperAllyB

Is it possible that the bulk of your balance was on a 0% offer for a while, during which time all but £15.40 of your 9.9% balance was paid off, but now the amount that was at 0% has reverted to the standard rate of 15.9%.

LJB290

Good points, although I haven't ever had a 0% offer on this card - only the 9.9% offer on a balance transfer several years ago.

You are right about the 15.9% - it will be cash and purchases - that makes sense.

I will send my letter and hopefully they will be able to explain.....

many thanks for your replies