Capital One "zero percent" rip-off

paja05

[FONT=&quot]Hi - I'm new to this, so please bear with me.[/FONT]
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[FONT=&quot]I got a Capital One zero percent credit card which was due to expire on 2nd June this year. I paid off the balance about 10 days before the expiry date of the offer. However, I was charged £16.20 interest even though my statement showed the money was with them on 24th May. When I queried this, Capital one replied with....[/FONT]
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Thank you for asking us why interest has been charged on your account

Your introductory rate on balance transfers was expired on 2 June 2007. Your interest rate on balance transfers made after this is chargedat 14.93% p.a.

As your introductory rate expired on 2 June 2007, interest was charged on your statement.

I'm sorry for any inconvenience this may have caused. I hope I've clearly explained your interest rates for you.

I reiterated that they had received the outstanding balance on my account a few days before 2nd June, but they insisted that this was a legitimate interest fee. Their second response explained further:

[/FONT][FONT=&quot]We work out interest on balance transfers on a daily basis from the day that you transfer the balance. Because of this, it isn't possible to avoid paying interest on transferred balances. However, the earlier you pay your account, the less the interest will be.

The charge of £16.20 on your June 2007 statement is the interest we've charged between your statement being printed and your payment being received.

[/FONT][FONT=&quot]Can Capital one get away with this?

Thanks in advance for any responses.

Julie


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LittleVoice

paja05 wrote: »

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[FONT=&quot]. . . Your introductory rate on balance transfers was expired on 2 June 2007. Your interest rate on balance transfers made after this is chargedat 14.93% p.a.[/FONT]

[FONT=&quot]. . . [/FONT]

[/FONT][FONT=&quot]We work out interest on balance transfers on a daily basis from the day that you transfer the balance. Because of this, it isn't possible to avoid paying interest on transferred balances. However, the earlier you pay your account, the less the interest will be.[/FONT][FONT=&quot]

[FONT=&quot]The charge of £16.20 on your June 2007 statement is the interest we've charged between your statement being printed and your payment being received. . . .[/FONT]

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It seems extraordinary logic to me - unless you transferred any other balance after 2 June.

Or did you make purchases with the card which somehow replaced the 0% on balance transfers?

If the interest rate is 0% then the interest has to amount to £0.00. If it isn't possible to avoid paying interest, then you pay interest of £0.00. They seem to have operated on your 0% offer expiring on the date of your May statement rather than 2 June.

I think I would raise a formal complaint with them and unless they do repay the amount extracted from you, exhaust their complaints procedure and say you will take your complaint to the Financial Ombudsman.

Jennifer_Jane

Hi - this seems to be fairly usual. See this thread today as well: Barclaycard - Is This Legal or Just Sharp Practice?

Also, Martin says to always pay off a month before the end-date.

Jen

MarkyMarkD

What they are saying doesn't make any sense.

If your 0% rate expired on 2 June and the balance was fully cleared by that date, no interest is due.

Mozette

I had a cap one card with a 0% that expired not long ago. I BT'd it before the date the 0% expired and I wasn't charged any interest. I would take it up with them again.