LTSB mischarged interest - Confirming if I've done the right thing

taless

Hi,

Recently I've applied to change my LTSB Classic Mastercard to their new Airmiles Duo card.

Some background info. I have always paid my Classic MC in full each month by direct debit. My balance for this month was about £900, due date 15 Oct 07. I have paid a manual payment of £250 in early Oct, to allow me to continue my spending on the credit card without going over the limit.

My Airmiles Duo account was opened on the early hours of 15 Oct 07 - and all my balance on my LTSB Classic was transferred to it. My Direct Debit payment of about £650 hit the Mastercard account on 15 Oct as well, but it wasn't transferred to the Airmiles Duo card on 15 Oct 07. It was manually transferred to the Airmiles Duo on 16 Oct 07. As a result (as was told by the agent), I have been charged interest for the £650 in purchases.

Today, as I was checking my internet statements, I saw an interest of £21.23. I gave the Card Services a call. The call was fine, the agent understood my problem and said indeed it was the computer's fault, so she told me she has 'corrected' it.

I am posting this question because I have these questions:

1. I am actually a bit confused by how interests are charged. We pay interest on interest charges right? If the agent refunded £21.23 to me, does that solve the problem and stop all interest charges - or will I be left with some 'residual interest' - the time period when the interest was first applied to the time when the interest was 'refunded'?

2. It was completely a pleasant call. The agent understood my problem. My ties with Lloyds TSB will not have been affected as a result right?? I want a perfect banking relationship with them. (Was asking this as I heard about when customers reclaimed bank charges, though they were refunded, their relationship were completely strained. I hope this is not the case for me!)

Thanks a lot guys for your replies. I applied for the Airmiles Duo really to collect points, not to pay interest!!!

jonesMUFCforever

If you pay the balance off straight away then the bank were right in correcting their mistake and refunding the interest.
They have done this and if there is residual interest they will refund this as well.

Why it could not do this automatically is anyone's guess. How many people have paid up without questioning this?

Chris2000

LTSB forgot to take my minimum payment by DD last month. I had already paid the rest a couple of days earlier and as soon as I noticed the DD hadn't been taken I paid it manually, but this was after the due date so I got charged interest.

When i called, they had no problem refunding the interest and there is no residual interest on this month's statement.

taless

Thanks Ejones999 and Chris2000 for your replies!

Chris2000 wrote: »

LTSB forgot to take my minimum payment by DD last month. I had already paid the rest a couple of days earlier and as soon as I noticed the DD hadn't been taken I paid it manually, but this was after the due date so I got charged interest.

When i called, they had no problem refunding the interest and there is no residual interest on this month's statement.

Chris2000, just wondering - did you set up a Direct Debit for Minimum Payment or Full Payment? My understanding is if you've set up a DD for Minimum Payment, and you paid more than the Minimum Payment, the DD will not be taken?

jonesMUFCforever

The direct debit for minimum payment will be taken on the day stated on your statement even if you have paid the whole balance off in full a few days before.