Mis-sold credit card

bradders1983

Sidders66 said:

bradders1983 said:

You cant afford an extra £25 or so a month? At least the compo covers you for four months.

As said nowhere will be offering payments of 1% of balance. How much were you paying on it on the old card?

I have one credit card with MBNA (paying 1% of the balance) and the credit card I transferred from in this case was Halifax. Again, that was 1%. I’ve never paid above this. 

And the £100 wouldn’t quite cover two months payments given the repayment rate is 2.5%??

The difference between a 1% and a 2.25% payment on the full current balance is £25. 4 lots of that is £100.

BakingC

I think take the £100 and try and find the spare £30 difference in your budget to make up the 2.5% payment at least the 100 will give you 3 months of breathing room. I doubt the ombudsman would give any more as you haven't sustained any financial loss as a result of their mistake (apart from maybe any balance transfer fee if you wouldn't have transferred if you knew the 2.5%). 

Have you got a detailed budget in place and are following it? Seems worrying that you have this cc debt but can only afford 1% max payments.

Also not sure if they are still offering it but natwest balance transfer card is 1% minimum payment so in a few months you might be able to apply for that. 

phillw

jonesMUFCforever said:

This is what the website says
If you entered into your agreement with us from 23 March 2011 onwards, the minimum payment will be the higher of: A. The sum of (a) interest for the period from the last statement, (b) any default charges, and (c) 1% of the full amount you owe as shown on your monthly statement (not including interest and charges) B. 2.5% of the full amount you owe us as shown on your monthly statement (including interest and charges.

I have read it more than once and can't fathom it to be honest.
I think if you pay interest you pay the monthly interest charge plus 1% but if you are on a promotional interest free card you pay 2.5% of amount owed - is that how everybody else sees it?

No, it's very clear what the calculation is.
First calculate A: last statement interest + default charges from last month + 1% full amount owed (not including last statement interest & default charges)
Next calculate B: 2.5% full amount owed (including interest and charges).
They will charge whichever is higher.
It's so they can force you to pay the default charges, otherwise you'd just pay 2.5% of them.

Sidders66

BakingC said:

I think take the £100 and try and find the spare £30 difference in your budget to make up the 2.5% payment at least the 100 will give you 3 months of breathing room. I doubt the ombudsman would give any more as you haven't sustained any financial loss as a result of their mistake (apart from maybe any balance transfer fee if you wouldn't have transferred if you knew the 2.5%). 

Have you got a detailed budget in place and are following it? Seems worrying that you have this cc debt but can only afford 1% max payments.

Also not sure if they are still offering it but natwest balance transfer card is 1% minimum payment so in a few months you might be able to apply for that. 

Hi. Thanks for your reply. I’m very good at budgeting for my needs. I actually pay more than the minimum on the two credit cards I currently have. And because I have two, that’s why I’d like to keep it at 1%. Paying more than the minimum is actually good for my credit score, so I’m certainly not worried about not living within my means; exactly the opposite actually. I’ve budgeted for just above 1% and that’s what I was told I would get. 

I think this thread has got confused with what I can/ can’t afford and that is not the (main) issue here. I’ve been missold a product. It is this element that I’m interested in and how the problem may be resolved when put before an ombudsman. 

SuperAllyB

Not an expert by any means, but I suspect the best you could hope for (on top of the compensation already offered) is a refund of any balance transfer fee that you paid.

I'd be very surprised if any company would be compelled to adhere to misinformation given out by call centre staff.

Emmia

Sidders66 said:

BakingC said:

I think take the £100 and try and find the spare £30 difference in your budget to make up the 2.5% payment at least the 100 will give you 3 months of breathing room. I doubt the ombudsman would give any more as you haven't sustained any financial loss as a result of their mistake (apart from maybe any balance transfer fee if you wouldn't have transferred if you knew the 2.5%). 

Have you got a detailed budget in place and are following it? Seems worrying that you have this cc debt but can only afford 1% max payments.

Also not sure if they are still offering it but natwest balance transfer card is 1% minimum payment so in a few months you might be able to apply for that. 

Hi. Thanks for your reply. I’m very good at budgeting for my needs. I actually pay more than the minimum on the two credit cards I currently have. And because I have two, that’s why I’d like to keep it at 1%. Paying more than the minimum is actually good for my credit score, so I’m certainly not worried about not living within my means; exactly the opposite actually. I’ve budgeted for just above 1% and that’s what I was told I would get. 

I think this thread has got confused with what I can/ can’t afford and that is not the (main) issue here. I’ve been missold a product. It is this element that I’m interested in and how the problem may be resolved when put before an ombudsman. 

So if you can "afford more" I'm not sure what the issue is? It is your responsibility as the person taking out the credit card to read and understand the T&C's, and whilst the call centre staff should have done better in advising you, I think the £100 is probably fair. 

Personally think it is fairly obvious from their website, that you'd have to pay 2.25% of the balance, as it is "the greatest of..." Barclaycard offer a calculator, to help you work out your monthly payment  https://www.barclaycard.co.uk/personal/credit-cards/interest-calculator

"If you opened your account after December 2010 or selected "Don't know", the calculator assumes that your minimum payment will be the greatest of:

• £5 (or the total outstanding balance if it's less than £5)
• 2.25% of your main balance plus any purchase plan instalments due for that month (if you have a plan)
• Default charges and annual fees, plus interest, plus 1% of your main balance" 

As you're on a 0% rate, you wouldn't have any interest accruing, and I'm presuming that you wouldn't have racked up any defaults or other charges which would need to be paid and  take you to a figure which is more than the value of 2.25%.  This is as far as I can see the only scenario where you'd pay off 1% of your outstanding balance. 

born_again

Sidders66 said:

bradders1983 said:

You cant afford an extra £25 or so a month? At least the compo covers you for four months.

As said nowhere will be offering payments of 1% of balance. How much were you paying on it on the old card?

I have one credit card with MBNA (paying 1% of the balance) and the credit card I transferred from in this case was Halifax. Again, that was 1%. I’ve never paid above this. 

And the £100 wouldn’t quite cover two months payments given the repayment rate is 2.5%??

So you think a £2K balance is going to require a repayment of £50+ a month. Remember you have the £100 on top of what you were going to pay anyway.

I have just under £4K on a halifax card. Last months Min payment is £45.12

>>Your monthly minimum payment will be an amount equal to the higher of £5 or the total of any interest charged, any default charges payable, 1/12th of your annual fee (if applicable), any Credit Card Repayment Cover (if applicable), and 1.00% of the balance you owe shown in your statement. If you owe less than £5 you must pay the full amount you owe.<<

Yes it is at 1% of outstanding balance. But this is a old account. Any new ones are going to have higher repayment % due to the current persistent debt regulations. 
Card provider are making sure they do not fall foul of FCA and people not paying enough back, so they can try and wiggle out of paying it back.

adamp87

I think the £100 is the best you would get you could say you are unhappy with the offer and see if they escalate further. Evidently you are after more money for your complaint.

I think they could rightly argue why you agreed in the first place if you didn’t understand the terms & conditions (however vague) in the first place. I don’t think you’ve been willingly miss sold a product by any means- more you didn’t understand the information & agreed anyway.

I’d use the £100 to offset the balance, they won’t change the rate for you unfortunately 

digalumps

i think.you will find legally that the formal written terms and conditions cannot be overridden by oral statements over the phone.

You are lucky to get £100

born_again

digalumps said:

i think.you will find legally that the formal written terms and conditions cannot be overridden by oral statements over the phone.

You are lucky to get £100

No, they can't. But if a rep gives the wrong info, then it is a error, or it could be how the question was worded to them. But clearly HSBC have held their hands up and admitted a error. As such have been very generous with the refund.