Paid a debt via credit card, but it was taken as *cash*, with fees plus interest
in Credit cards
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in Credit cards
I was late with service charge payments on my flat to the management company. It went to propertydebt.co.uk, and additional fees totalled over £400. I agreed with them to pay off the total of £3,300 in two monthly instalments via credit card.
My card statements now show two related *cash fee*s totalling almost £100, and the two payments are being treated as *cash advances*, with interest of 23%.
I expected them to just be normal payments, not to put me further into debt.
I called NatWest and they explained that as it's a financial services company then it's effectively cash payments (even though at no point did I use my card in an ATM).
I'm not going to argue the financial rules, but surely propertydebt.co.uk should have told me that it would be taken as if it were a cash advance? I didn't even know that it was possible! I would have arranged to pay directly if I'd known and avoided the fees plus interest.
So, were propertydebt.co.uk duty-bound to tell me that by paying by credit card it would be treated as a cash advance, or am I expected to have known that already?
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Also remember, you don't need to go anywhere near an ATM to make a cash transaction, so that you don't get caught out again.
I would contact them as it maybe a mistake/misunderstanding.
Merchant code is set by the merchant's bank not the OP's
Most other card providers don't class the propertydebt.co.uk merchant category as a cash advance.
So I've learnt a couple of things:
1. "you don't need to go anywhere near an ATM to make a cash transaction" <-- Wow, I had no idea about this! It doesn't seem intuitive to me at all, but I guess it's in the small print.
2. Different banks set slightly different rules on what is classed as a cash advance. <-- Again, this is surprising to me; leaves consumers in the dark a bit (or constantly needing to consult Ts&Cs).
I spoke to the debt company but the agent didn't seem to grasp what I was talking about so asked me to email them, which I have.
I also emailed the management company (who I had been late paying), as an FYI to what can happen. They said their arrears dept would look into it.
Thanks for the all the advice given :-)
No. They're not regulated by the Food Standards Agency.,
They're just a debt collection agency, collecting payments.
It is always best to take it that paying for any financial product, especially a debt is going to be classed as "Cash"
I had slightly misunderstood the circumstances and thought you'd gone to the company and therefore it'd be some form of loan rather than your freeholder having passed the debt to them.
The merchant will have a MCC code assigned to it based on the products/services it offers, though some large global companies have their own. Its a US resource but you can see some examples of MCCs at https://usa.visa.com/content/dam/VCOM/download/merchants/visa-merchant-data-standards-manual.pdf
The merchant should know what its MCC is, though not necessarily the front line staff. Its then down to your card issuer to decide how it treats each code. Its how promos like "double MR points on supermarket spend" is worked out but also how cash like transactions are dealt with. The merchant will be unaware how your particular bank is treating them and there will be no feedback loop from your bank to them if they decided to change how they treat a certain MCC.
Home improvement secured loans 30,130/41,000 and 23,156/28,000 End 2027 and 2029
Mortgage 64,513/100,000 End Nov 2035
2022 all rolling into new mortgage + extra to finish house. 125,000 End 2036
Jan = £715 / £1,000 Feb = £1,275 Mar = £
Apr = £ May = £ Jun = £
Oct = £ Nov = £ Dec = £