Lloyds Bank Credit Card Interest charging policy

John_

delboyo said:

What part of  -  they are charging me Interest on my most recent purchases BEFORE payment is even due and while I still have 3 weeks of "credit" left   -  don't you understand?    It's not on the statement as a display item.  They will take the Interest charge on the most recent purchases even if I pay by the due date.   

Why, when you are unable to understand a simple statement yourself are you reacting aggressively to someone trying to help?
You presumably have a support worker who’s there to assist you with things like this, should you not speak with them before lashing out like this online?

born_again

(Quote removed by MSE Forum Team)
All my statements show "Estimated Interest"

SnowTiger

delboyo said:

I have just discovered that if you don't pay off (say) October's statement balance in full they charge interest in November's statement.     Fair enough. 
BUT.  They appear to be also charging interest now on any purchases made on the November statement even though payment isn't due until mid December.  What happened to the up to 56 day credit period?   
Customer Services tell me that if I pay off the outstanding balance in full my Interest charge for the November purchases will then be refunded !?!?    
My other Credit card issuer don't do that and their Customer Services person was astounded that Lloyds are doing this.   Is this legal?   Does it contravene any part of the Banking code - if one exists !

        

Most credit cards will charge daily interest on new purchases if you haven't paid your previous statement balance in full,

Lloyds explain it on their back of their statements like this: 

We calculate interest daily based on the total amount you owe. We add together all the daily interest amounts in each statement period and add the total to your balance on your statement date.

[...]

Purchases: We do not charge interest on purchases made during your latest statement period if you pay off your full balance (including any balance transfers and money transfers) by the payment due date and you also paid your previous month's balance in full by the due date.

jsmith9

delboyo said:

OK you do the maths.
Balance carried forward from previous month  £200.  New purchases this month  £250.  Due date December 11th.
Interest rate  1.499% per month.  Amount charged  £6.14
By my reckoning the interest should only be charged on the balance carried forward which would be £2.99
Does that make it clear?



   

You said "By my reckoning the interest should only be charged on the balance carried forward..."

That is incorrect. If you don't pay in full, you will be charged interest on the FULL statement balance. The interest will be calculated for each transaction back to the purchase date ie not the statement date.

delboyo

I have to hold my hands up and say sorry.
Normally I pay in full by every due date and I have been labouring under a false assumption for goodness knows how many years that Interest is only added the month following purchases, not from the purchase date if you failed to pay the previous months balance in full. 
Perhaps they should call them "This is only a credit card if you pay in FULL every month".  No wonder they make so much money.
   

Yahoo_Mail

delboyo said:

I have to hold my hands up and say sorry.
Normally I pay in full by every due date and I have been labouring under a false assumption for goodness knows how many years that Interest is only added the month following purchases, not from the purchase date if you failed to pay the previous months balance in full. 
Perhaps they should call them "This is only a credit card if you pay in FULL every month".  No wonder they make so much money.
   

It's a credit card if you don't pay in full every month too.

jsmith9

Perhaps the best way of looking at a credit card is that when you buy something you get charged interest from the very day of the transaction up to the day that you pay it off.

as an extra special concession they will waive this interest if you pay the statement balance in full (and not a penny less) by the due date