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I have recently cleared my credit card bill in full, I called MBNA a to do this, The agent gave me a figure and I paid it in full I then closed my card I have since had a letter stating that I owe £74 interest which was the day after my card was cleared do I have to pay this?

Replies

  • MallyGirlMallyGirl Forumite, Senior Ambassador
    5.9K Posts
    Ninth Anniversary 1,000 Posts Name Dropper Intrepid Forum Explorer
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    of course. It is the interest incurred since the last statement - the operator wouldn't have been able to calculate this on the fly for you
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  • BoGoFBoGoF Forumite
    6.3K Posts
    Part of the Furniture 1,000 Posts
    Yes, it's called trailing interest.
  • 2e0arr2e0arr Forumite
    1K Posts
    Part of the Furniture 500 Posts Name Dropper
    why not make a subject access request for a legible copy of the telephone conversation you had when you made your payment. it will cost you nothing. Listen to the conversation if it is clear you want to settle your balance and the OP you spoke to is aware of this then whilst they might consider you still have to pay the £74 interest thingy they might waive it as a gesture of goodwill,
    Even if you dont bother with an SAR,  If you do complain they have 8 weeks to send a resolution if you don't accept their resolution you can then go to the Financial Ombudsman for an adjudication. This will cost you nothing. If the adjudication is in your favour  the £74 could be written off and you might get compensation. If  not in your favour then you will have to pay the £74.
    Either way when you go to the FO for an adjudication its costs you nothing win or lose however win or lose the company will have to pay the case fee £550 approx. So facing a potential £550 it would be in the company's best interest to write the £74 off .
    they will have two choices charge you nothing or get £74 from you and then they have to pay the FO £550 , £475 worse off.
  • sasha20sasha20 Forumite
    43 Posts
    10 Posts Photogenic Name Dropper
    Forumite
    I would definitely not agree with the above advice.

    If you go to the ombudsman, the most likely outcome is that you will still have to pay the £74. At the point of the conversation, the agent would have been correct in saying that you can clear the balance in full and correct in telling you how much your total balance was at that time.

    This is because the trailing interest is not calculated and does not appear on the balance until the following statement is generated and the agent cannot calculate it for you. You can't make a payment to put your credit card in credit so before that interest is calculated and actually charged, you wouldn't have been able to pay it anyway.

    The reason trailing interest exists is because interest is charged daily and the days between the statement being generated and your payment going through were not charged on that previous statement.

    The most sound advice is to find a way of paying it and close the account afterwards. If you attempt to go through the Ombudsman, you'll waste a load of time and almost certainly will still have to pay it.
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