0% confusion and rip off

exalco?

Hi folks, my No.2 post of three; I have had a Lloyds credit card since 2013 and have been basically "tarting" with it over the years bur recently (29/4/21) used it to buy a car when other card failed, intending to use the 0% period for a few months until the car was settled in and then paying it off in full.. However I have just found out they slapped £236.00 interest on the debt, I have called them but frankly the agent was useless and hung up on me I think after making me wait on hold for 10 minutes. My point really is that I had no notification other than a small paragraph on my statement which I overlooked saying that the 0% period was ending on my balance transfer made 18 months prior. I'd understand if some of the old debt was unpaid after the 18 months but thought a fresh 18 months would start or at least 12 months or something on a purchase, even 56 days which I am barely within still. I have had texts, emails etc from other banks over the years when the promotion is ending. It just seems like they were keen to keep it quiet enough to catch me out which they have. Anyone else ever had this kind of issue?

GrumpyDil

The introductory 18 month period is only ever that. Once it has expired then unless they offer a new 0% period it behaves like a normal credit card.

As regards the 236.00 interest did you have an existing balance from the previous statement which was not cleared?  If so then new purchases would not benefit from the usual up to 56 days interest free period. 

exalco?

@GrumpyDil; thanks for the reply, there was no previous balance having been cleared last December which I would understand if it hadn't been. I used the card at least 3 times for balance transfers and always had 0% straight away for the duration. i cynically think that being as this purchase was the largest amount I've ever had on it, just 2 weeks after the purchase, the 0% period was terminated quietly.

GrumpyDil

If you purchased the car on a completely clear card with no previous balance then I wouldn't expect you to incur any interest if you paid the full balance off by the statement due date after the purchase. If that's the case then you probably need to explore this with the card provider.

If you didn't clear the full balance then I believe the interest will have been backdated to the purchase date as, in this scenario, you don't benefit from the interest free period. 

QrizB

@exalco?  on the date that you bought the car, did you have a "0% interest on purchases" deal active on your card?

If not then, as GrumpyDil says, you need to pay it off in full by the payment date on your statement if you want to avoid interest.

phillw

exalco? said:

Hi folks, my No.2 post of three; I have had a Lloyds credit card since 2013 and have been basically "tarting" with it over the years bur recently (29/4/21) used it to buy a car when other card failed, intending to use the 0% period for a few months until the car was settled in and then paying it off in full.. However I have just found out they slapped £236.00 interest on the debt, I have called them but frankly the agent was useless and hung up on me I think after making me wait on hold for 10 minutes. My point really is that I had no notification other than a small paragraph on my statement which I overlooked saying that the 0% period was ending on my balance transfer made 18 months prior. I'd understand if some of the old debt was unpaid after the 18 months but thought a fresh 18 months would start or at least 12 months or something on a purchase, even 56 days which I am barely within still. I have had texts, emails etc from other banks over the years when the promotion is ending. It just seems like they were keen to keep it quiet enough to catch me out which they have. Anyone else ever had this kind of issue?

I'm unclear exactly what issue you've had.

1. If you failed to clear the balance transfer by the time the 0% rate ended then they will charge you interest. You've "tarted" it over the years, so I'd expect you to know they don't decide to start another 18 months.

2. Unless you have 0% on purchases then you will get 0% for up to 56 days ONLY if in the previous statement period you made payments greater than the previous statement balance (INCLUDING any part of the balance at 0%). While I assume you've instead only been paying the minimum payment.

Tokmon

exalco? said:

Hi folks, my No.2 post of three; I have had a Lloyds credit card since 2013 and have been basically "tarting" with it over the years bur recently (29/4/21) used it to buy a car when other card failed, intending to use the 0% period for a few months until the car was settled in and then paying it off in full.. However I have just found out they slapped £236.00 interest on the debt, I have called them but frankly the agent was useless and hung up on me I think after making me wait on hold for 10 minutes. My point really is that I had no notification other than a small paragraph on my statement which I overlooked saying that the 0% period was ending on my balance transfer made 18 months prior. I'd understand if some of the old debt was unpaid after the 18 months but thought a fresh 18 months would start or at least 12 months or something on a purchase, even 56 days which I am barely within still. I have had texts, emails etc from other banks over the years when the promotion is ending. It just seems like they were keen to keep it quiet enough to catch me out which they have. Anyone else ever had this kind of issue?

So rather than it being a "rip off" you have simply neglected to keep a track of when your offer period ends and then seemed to make some random assumption that each new purchases would give you another 18 or 12 months interest free period. Something is not a "rip off" just because you failed to understand how it works and what the terms and conditions are.