Sainsbury Mastercard credit card-interest charged on every purchase-is this normal?

Jubudz

My Sainsbury 21 month free transaction offer has just expired.  No problem but they are now charging interest on every purchase even if the total monthly due balance is paid in full & on time?  I wondered whether this is legitimate?  I assumed wrongly perhaps that interest could only be charged if the monthly balance was not cleared in full.  Thanks.

Carrot007

With residuals you probably need 2 clea months before a interest feree period would start working again.

Of course they can do whatever they specify in the T&C's. They do not have to give an interest free period. Pretty sure they do, but I used it for a 0& balance transsfre and then they closed it becuase I did not use it so never paid em a penny!

Jubudz

Yes I understand that.  They have said that I can phone up for another 3 month interest free period after two clear months.  But is it financially lawful to charge interest on every purchase when the monthly balance is cleared in full & on time.  I accept that interest is charged if balances are not cleared.

razord

Jubudz said:

Yes I understand that.  They have said that I can phone up for another 3 month interest free period after two clear months.  But is it financially lawful to charge interest on every purchase when the monthly balance is cleared in full & on time.  I accept that interest is charged if balances are not cleared.

Depends on the terms... they can do whatever they say. Interest free periods are specific to each provider and each card.

Carrot007

Jubudz said:

Yes I understand that.  They have said that I can phone up for another 3 month interest free period after two clear months.  But is it financially lawful to charge interest on every purchase when the monthly balance is cleared in full & on time.  I accept that interest is charged if balances are not cleared.

Yes. They can charge from purchase if they like. Read the T&C's.

What I was on about is that if you have incurred interest then you need 2 clear months on many credit cards in order to regain the normal pay off in full interest free period. This is becuase of residual carry over. Decent cards write it off, sainsburys I doubt would. You need to clarify the T&C's and you cleaing history to know what is going on.

Jubudz

OK.  Thanks both.  That verifies the situation.

born_again

Are they actually charging interest or is it just listed within the amount due as estimated interest?
Which would not be charged if you pay in full.

penners324

If you're paying in full and in time then no interest should be charged.

As above though, is interest charged in the transaction list?

molerat

Sainsbury's did offer a card without an interest free period outside of the promo offer last year, maybe this is what OP has.

phillw

Jubudz said:

My Sainsbury 21 month free transaction offer has just expired.  No problem but they are now charging interest on every purchase even if the total monthly due balance is paid in full & on time?  I wondered whether this is legitimate?  I assumed wrongly perhaps that interest could only be charged if the monthly balance was not cleared in full.  Thanks.

If you wait for the 0% period to end then the preceding statement wasn't paid in full & you will end up paying interest.

When I got caught out by this I phoned them up and complained that it was too confusing and was able to get the interest on the statement removed & they didn't apply any future interest, I think I had to clear the balance at that point & have a full statement direct debit setup. 

If you don't do anything then they will happily keep charging you interest.