NATWEST CARD 0% on balance transfer ripoff

Frankthesurf

I took out a natwest credit card which offered a 0% on balance transfer and 3 months free interest on purchases.
I transferred a balance from my other cards (which they charged me a fee for)
I used the 3 month interest free on purchases with the intention of paying off at the end of the 3 months HOWEVER
it turns out that YOU CANNOT PAY OFF THIS OUTSTANDING AMOUNT to just leave the amount balance transferred!!!!
This means that any amount you PAY OFF GOES AGAINST THE BALANCE TRANSFER.
Consequently interest is charged every month.
When I took the card out (over the phone) I was not advised of this and on contacting nat west they just say I should have read the terms & conditions
Anyone help??
Cheers
Frank

caver

If you check the T&C's for the card you will see that the lowest interest will be paid off first and as the purchase rate changes from 0% - goto rate after 3 months you would start being charged interest on the purchase balance. All credit cards adopt this policy. Might be an idea to apply for another card and transfer the balance at 0% so that you won't be paying any interest.

Clariman

This is absolutely standard practice with credit cards. Having a 0% on Purchases period which is less than the BT period should always ring alarm bells. Never spend on a 0% BT card unless the 0% on purchases period is for the same length.

It is so important to read credit card Ts & Cs.

Clariman

Moggles_2

This is exactly the trap NatWest calculates some customers will fall into and it's one of the main ways, IMO, the bank stands to make money! Those taking up this balance transfer deal, are offered 0% on purchases for just 3 months and then bombarded with advertising aimed at persuading them to spend on the card as well.

The only solution, as noted above, is to transfer the entire balance to another credit card. Then keep your balance transfers and purchases on separate cards

Trembling_Turnip

But first calculate the amount of interest you will be paying on the Natwest card for purchases over the remainder of the 0% balance transfer period. Compare this with how much it will cost you to transfer the entire balance over to another card.

It might be cheaper to stick with the Natwest one if another card is going to charge you upwards of 3% to transfer the whole lot.

Oh...and don't spend any more on it obviously.

YorkshireBoy

caver wrote: »

If you check the T&C's for the card you will see that the lowest interest will be paid off first...All credit cards adopt this policy.

The Nationwide cards are an exception to this norm.

http://www.nationwide.co.uk/creditcard/GoldCard/order_of_payments.htm


OP, look on the bright side...you only get caught once with something like this.

YorkshireBoy

Trembling_Turnip wrote: »

But first calculate the amount of interest you will be paying on the Natwest card for purchases over the remainder of the 0% balance transfer period. Compare this with how much it will cost you to transfer the entire balance over to another card.

Excellent point!

I'd also add, remember you paid a 2.5%(?) fee to move the balance to the card in the first place.

The_Boss

I really dont get how this is a rip off.

Phantom_Flan_Flinger

The_Boss wrote: »

I really dont get how this is a rip off.

It's not a rip off as you say.

It's just that many people don't fully read or fully understand the small print and end up paying for it.

The CC companies all know this and it makes them money. I suppose you could argue that they should make the allocation of payments in their T&C's a bit more noticeable.

dc

The_Boss wrote: »

I really dont get how this is a rip off.

No but it is a trap, designed to catch the not so well informed, the inexperienced or those just too busy to be able to find time to read the whole of multipaged small print.

We alll learn by our mistakes, but as milking the once totally bovine British public is getting more difficult (thanks somewhat to MSE), the Banks et al are seeking more and more devious ways to plug the gaps made partially by Martin's philosophy and message.

HannaB

I fell for this "trap" too. However, the interest I am paying on the new card is still less than what I was paying on the old card, so I am still somewhat better off.

Cut the card up though, and we'll both learn for next time.