Hidden charges on credit card

Shelle

Am I wrong but should charges on your card not be clearly indicated on your statement?

To cut a long story short, I made a series of lottery transactions on my card (a donation to charity via playmonday) which I then discovered that my card company treat as a gambling transaction and subsequently as a cash advance, thus a charge was applied. However, the first I knew of this was when I noticed a minimum finance charge of 50p coming off my card each month. When I queried it, I was advised that it was related to my "gambling" transactions and the interest was being applied as I was not clearing the charge. (Strangely enough, I have made 3 other such transactions in 2006 to the same company (playmonday), but no charges or interest applied!)

I was confused as to how I could owe money as I pay my bill off each month, in full,by direct debit. Nowhere on my statement does it show that I have incurred a charge on any of my transactions. The only thing on my statement now is a minimum finance charge of 50p being applied on the last day of the financial month, which is presumably me paying interest on the charge due to not making an additional payment (to clear a charge not mentioned on statement!). My statement merely shows an outstanding balance, and states that I am currently paying outstanding balance in full every month.

So, whilst I have to accept the fact that I have been charged due to making a gambling transaction, the question I am asking is should a charge be clearly shown on a statement, plus any interest relating to that charge? I am still currently trying to get a straight answer out of my company, as I cannot even find out how much the charge was, nor how to clear it! I am getting conflicting answers, one staff member said to make an additional payment (who knows how much for!) and then make no transactions on the card until it clears, whilst another staff member has said that the interest will simply decrease until nil!

I cannot fathom how I am meant to clear a charge when firstly I was not aware of it until
the interest started being applied, and secondly I cannot even find out how much the charge is!!

Does anyone know whether charges on cards are shown on statements, and where I stand on this? I cannot believe that it is ok for credit companies to "hide" their charges and expect people to pay interest on something they were not aware of. I am still in correspondence with my card company as I am still trying to find out how much I owe and how to clear it. It has taken me 2 weeks to not get very far at all!

Please note that I am not asking for a refund at this point, merely trying to find out if they are guilty of malpractice by hiding the charge.

Hoping you can help me asap.

YorkshireBoy

Due to the 'order of payments', you will continue to be charged 50p per month ad infinitum. There are two ways to stop the interest...

1. Stop using the card for two months, and settle each statement in full, or

2. Overpay your next statement by 50p

As to how they should list/identify your transactions, then this should be defined in your T&C's.

Which card is it?

Shelle

It is Egg. (Not money, the orginal egg card).

It is in the terms and conds about gambling trans being cash advance, however I cannot find anything about how they inform your charges. I cant understand how they can expect people to clear charges when they dont make us aware in first place on our statements.

It will be difficult to stop using card (especially as it is near christmas) but will probably do an additional payment. Do I need to stop using card for a small period though despite an extra payment as first member of staff said??

I am now going to get another credit card as this is the 3rd time I have had trouble with Egg (other 2 times were relating to an discrimination issue - namely refusing my online application because I could not confirm by telephone as I am deaf). Once I have new card, I will close the account once and for all!

YorkshireBoy

Shelle wrote: »

It is in the terms and conds about gambling trans being cash advance, however I cannot find anything about how they inform your charges.

Because there is no interest free period on cash advances, this part of your balance continues to attract further interest (in the background) from the date of your statement until the date of your next statement. That's why you can never stop the interest if you continue to use the card.

Do I need to stop using card for a small period though despite an extra payment as first member of staff said??

Probably the best way to get out of this is to wait for your statement to be produced and then stop using the card. Once all your recent transactions are showing on your account, send them a manual payment for the total balance showing (NOT your statement balance) plus 50p. Important...send this so it arrives at least 5 working days before your payment due date (this will stop your DD being called). Only when you see this payment has been credited to your account should you start to use the card again.

Shelle

Thanks for your concise help, its what I needed to understand how to clear the charge, something they could not seem to grasp!

Now hunting for the best cashback card on offer!

Thanks again :T