Minimum monthly DD payment not covering interst charges

pennypinching_2

I have an A&L CC and I pay a minimum DD payment each month which is automatically calculated by A&L and taken from my current account.
I used the card in April which took it to about £30 off the limit.

Now I hardly ever open my statements as its too depressing as I only pay the minimum payment (which is all I can afford) so the balance never reduces.

I opened a statement recently to find that I had been charged as Ive gone over my agreed limit. When I used the card in April I made sure I was under my limit.

I rang the A&L to find out that in April their interest charges had taken me over my limit so I had been charged. I can purhaps understand that I was charged in April but they told me I had been charged every month since as the minimum payment isnt covering the interest. My argument to them was that surely the minimum payment they are taking each month isnt enough.

Anyone out there who can advise. I cant put my hand on the statement but Im sure its approx. £300 that I have been charged since April and I havent used the card since then.

jamalfatty

The minimum payment is worked out in a very specific way as per your T&C's, now it assumes that you wont breach your agreement and thus incur penalty fee's. If you do though, these wont be taken into consideration when the minimum payment is worked out, so effectively you will be over-limit every month.
I suspect that when you mentioned you spent very close to your limit in April but did not take into account the interest to go on.
This will be a perpetual problem unless you increase your DD or make a one-off payment to bring you under your limit.

pennypinching_2

Thanks for that. No I didnt take in to account in April the interest and I can see what you are saying. I wish I could find the statement because Im sure they must put the interest on just before they take payment. I also offered to make a payment over the phone with a debit card which they wouldnt allow me to do, there are no local branches and I dont have a cheque book so Im a bit stuck.

jamalfatty

pennypinching wrote: »

Thanks for that. No I didnt take in to account in April the interest and I can see what you are saying. I wish I could find the statement because Im sure they must put the interest on just before they take payment. I also offered to make a payment over the phone with a debit card which they wouldnt allow me to do, there are no local branches and I dont have a cheque book so Im a bit stuck.

Other way round, your payment is collected, and then about 5 days later your next statement is produced and the interest is calculated and applied to your account that day.

You obviously have internet access, pay online?

pennypinching_2

Never thought about paying on line...thanks for that!