Advice please. Interest exceed minimum payment this month

davidbb

This month I noticed that my interest charges on my credit card were actually higher than the minimum payment.
No purchases have been made on the card in recent months, however we were on a 0% offer which has subsequently ended.

Clearly the interest has now kicked in, that is not in question. But I believe the law on minimum payments is 1% plus any interest and/or charges. This would mean the credit card company should have adjusted accordingly to avoid this very situation. My minimum payment seems to have increased for next month which is, clearly one month late.

If possible could someone point me in the direction of the relevant legal documents, I believe the minimum payment rules came in around 2011.

I'd like to confirm whether the company acted illegally or whether it was legal but irresponsible.

Thanks in advance.

PeacefulWaters

Did you hold the card before 2011?

StopIt

If the minimum payment has indeed increased to the correct level now, it looks like an IT systems error.


Contact the credit card company in question, before any of the legal stuff as they may just sort this out with a simple phone call without legal threats etc.


I don't think when you took the card out is a factor here, as credit card companies have to update their T&Cs as the law changes, as my CC company has notified me of exactly that this week.

[Deleted User]

StopIt wrote: »

I don't think when you took the card out is a factor here, as credit card companies have to update their T&Cs as the law changes, as my CC company has notified me of exactly that this week.

That's true in most cases, but the minimum payment change only applied to accounts opened after the BIS changes came into effect.

It was considered that it could be too much of a payment shock to older accounts.

StopIt

Deleted_User wrote: »

That's true in most cases, but the minimum payment change only applied to accounts opened after the BIS changes came into effect.

It was considered that it could be too much of a payment shock to older accounts.

Duly noted!

davidbb

Opened October 2011 so after the laws. I need the specific legislation so ideally i can quote it when I contact them. I'm certainly not looking to chase them in the courts, however I am looking to nudge them in the direction of compensation. If they are as I believe in the wrong then there could be an argument for breach of contract.

StopIt

http://www.theukcardsassociation.org.uk/wm_documents/Good%20news%20for%20credit%20card.pdf


If it works


Also https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/the-costs-and-charges-of-credit-cards/


However, as stated, if this was an IT systems error, and has been corrected automatically, I'd hold off from the "you've broken the law rah rah" and simply ask for the difference back, and maybe a token sum for the inconvenience.

chattychappy

davidbb wrote: »

If they are as I believe in the wrong then there could be an argument for breach of contract.

What do your T+Cs say on minimum payments? If you talk about breach of contract, then you must look at the T+Cs.

I can tell you now, that you won't be entitled to anything. You were always free to pay more than the minimum. What have you actually "lost" because of this situation?? Even if they have done something wrong, you must show that you lost money as a result.

But the compensation culture is your friend. If you make enough noise, they might well give you something to go away.

Nebulous2

Does that show on the the same month's statement? eg does it say interest this month £20 Minimum payment £15 to arrive by?

The minimum payment taken this month is for last month's statement and reflects last months interest.

jonesMUFCforever

Nebulous2 wrote: »

Does that show on the the same month's statement? eg does it say interest this month £20 Minimum payment £15 to arrive by?

The minimum payment taken this month is for last month's statement and reflects last months interest.

Exactly right IMO and next month will show the proper amount.

OP why have you not switched the debt to another card?