Bank that can't do percentage sums

renford

My latest credit card statement shows an incorrect Minimum Payment value. It's obviously less than the x% which I should pay. This same incorrect Minimum Payment value is printed clearly, at two different places on the statement.

Question: Can I get away with paying this incorrect Minimum Payment? Can the provider claim that, regardless of their incompetence, I should have known the correct Minimum Payment, and paid this instead?

PBA

If the minimum payment is printed on the statement then it's the minimum you have to pay. Most likely is that you haven't read the full details on how minimum payment is worked out.

YorkshireBoy

Citicard per chance?

renford

PBA,

I looked more closely, and you're right. Minimum payment is 2.25% OR interest plus a fiver, whichever is lower.

I picked this up for stoozing, thinking I'd pay £70 a month, but still show a profit. But since I'm on a 0% balance transfer I'll only pay £5.

Never seen this before. Are the credit card providers actively chasing stoozers now?

PBA

They're just trying to keep your balance as high as they can, so that when the 0% ends they get interest on as much money as possible. Always nice to be told I'm right, many thanks!!

YorkshireBoy

renford wrote: »

Never seen this before.

It's peculiar to MBNA run cards (and the new Santander run Abbey card PBA?).

Are the credit card providers actively chasing stoozers now?

You mean encouraging them? It'd be nice wouldn't it?

saxmund

Yes my Abbey MBNA card does this, it's the lesser of x% or a fiver plus all interest and fees (I think). Strangely they charged me 3p interest this month when all I've got on it is a 0% balance transfer - which is a bit strange, but hardly worth querying.

My BT runs to May, does anyone know if I need to pay it off by the payment due date (which is normally about the 3rd of the month) or the statement date (the 10th) to avoid interest? It seems trivial, but it effectively makes the difference between being able to use April's salary or May's and hence does effect my cashflow.

YorkshireBoy

saxmund wrote: »

My BT runs to May, does anyone know if I need to pay it off by the payment due date (which is normally about the 3rd of the month) or the statement date (the 10th) to avoid interest? It seems trivial, but it effectively makes the difference between being able to use April's salary or May's and hence does effect my cashflow.

In my experience with Virgin (also run by MBNA), the 'end of promotion' date has always been the statement date.

However, it's always best to ring the provider to check these things out.