Credit Card Charges

myrtle1987

Please bear with me, this is the first time I have tried this.
I was astounded by my visit to my Bank today.a couple of months ago I transferred my Balance from Capital one to Lloyds TSB Platinum card. The deal was for 9mths interest free. However, when looking at my online balance today I discovered an interest charge of 17p referred to as a merchantise interest charge. The amount did not worry me as much as why it was charged in the first place. So off I trotted to my bank and explained the the guy what my problem was. After a lengthy phone call to his contact at the CC dept I was told it was interest accrued on the balance transfer fee and it would be continued to be charged for the 9mths. This only amounted to a couple of pounds but it was the principal.The Manager who I spoke to was also astonished by this charge as he didn't know it existed but he did arrange for it to be refunded. It seems we really have to be one step ahead all the time. I wonder what they will think of next to make money out of us???
Has anyone else come across this little gem??

benf90

When Lloyds TSB have sent me through offers trying to get me to do BTs etc they always have an asterix next to where it says what percentage the BT fee will be, then at the bottom it's stated that they charge interest on the BT fee.

Egg used to charge interest on BT fees for the 0% anniversary offers, they changed it back in February though so they no longer charge interest on it. I think its fairly common practice though for the BT fee to be treated as a separate 'charge' and not treated as part of the balance that's being transferred.

jonesMUFCforever

The trick is to put your card in credit BEFORE doing the transfer by the amount of the balance transfer fee.
It worked for me when I last did one with A&L (MBNA).

YorkshireBoy

ejones999 wrote: »

The trick is to put your card in credit BEFORE doing the transfer by the amount of the balance transfer fee.
It worked for me when I last did one with A&L (MBNA).

There's no need to go to such lengths with MBNA run cards EJ, because MBNA say...

2d We will charge interest on handling fees, and on interest you already owe, at the rate which applies to the relevant transaction.

...ie, a 0% offer BT fee will attract interest at 0%.

jonesMUFCforever

I thought that from September that they were introducing this charge on the balance transfer fee??
Might have mis read it?

YorkshireBoy

ejones999 wrote: »

I thought that from September that they were introducing this charge on the balance transfer fee??

Can't say I've seen it on my Virgin statements/notices of variation etc, and the quote above was from the Virgin website tonight.

Also, due to the MBNA order of payments, your BT fee is repaid first (with your first payment) so doesn't stick around long enough to accrue interest anyway.