Credit Card Interest on section 75

Mickeyguk

Hi. I made a section 75 claim on my credit card back in January for a £640 item that never got delivered in December. The credit card company sent the forms to fill out & asked for email print outs of me contacting the seller. Did all that & waited as I was told it would take 30 days. Got to mid March & way over 30 days & I had heard nothing. So I rang my credit card company & found out the forms & email print outs had just been sitting there & no one had processed it. They said sorry & claim to have processed them now. My question & advice I hope you can help with. Can I claim the 3 months plus of interest I’ve been paying because of the £640 still counted as spent on my credit card & the credit card company messing up? I’m talking the last 2 month I have been charged interest of £114 because of this £640 still not refunded. I will be switching credit card company because of this in my eyes big mess up, but I need to wait for this refund.

eco_warrior

Hi

You mentioned the claim has been processed, do you have the refund now? You should have.


I think it would be best to ask the card company if they will recompense you for the delay by refunding the interest. I think you have a valid complaint for the delay, but whether they will refund £114 is up to them, they might not (I you were my customer I would). However the bank might just say you should have paid your balances in full in order to avoid the interest charges (as per T&Cs).

Some banks freeze the interest on transactions when a customer first contacts them, which would have helped avoid this issue, but as far as I am aware banks aren't under any obligation to do so.


Hope you get it sorted.

[Deleted User]

Mickeyguk wrote: »

I’m talking the last 2 month I have been charged interest of £114 because of this £640 still not refunded.

Are you sure? That would be an APR of something in the region of 150%.

eco_warrior

Deleted_User wrote: »

Are you sure? That would be an APR of something in the region of 150%.

If its the case that the OP has paid their full balance less the £640.00 then the interest charge will be for the full balance (up to the point it was paid) and not just the £640.00.

Mickeyguk

Hi. Yeah they have said they’ve started the claim process now which I will ring up & check this week it’s not lost etc again. I will speak to the credit card company about this, just wanted some info on it as I don’t trust they will tell me the truth etc.
Sorry the 2 month interest I meant 4 months from spending the £640 in December.

Mickeyguk

Also the paying the balance in full I’m not sure how that works. As if I clear the £640 off the card that clears the credit card & then the £640 is refunded what happens to that?

Mickeyguk

So this interest being charged should be refunded if/when the claim is done you mean?

eco_warrior

Mickeyguk wrote: »

Also the paying the balance in full I’m not sure how that works. As if I clear the £640 off the card that clears the credit card & then the £640 is refunded what happens to that?

Lets say you had paid the balance in full, then you wouldn't have accrued any interest at all. Then when the bank refunds you then £640.00 comes off whatever your current balance is at the time of the refund.


Meaning if you owed money you'd then owe £640.00 less.


Or if you owed nothing the you'd have a credit balance of £640.00 which you could then spend or ask to be trasnsferred to your current account.

Mickeyguk

Thanks. I might ask them if the interest is going to get refund from their fault time period & the interest that’s started from the claim being processed period. If they say no to the claim process period I will clear it & transfer the claim into my bank account once that’s done.