Why has RBS charged me interest days after a transaction?

liamcov

My 0% spending has just finished, but since then I have paid for some flights - on receiving on statement I see they have already charged me interest on this (around 5 days before the statement date).

I thought all CC didn't charge any interest on any new purchases on each statement, and only if I didn't pay that off in full would interest then start accruing from the next statement?

Can anyone tell me what is happening (like I say 0% spending has finished so not that used to how RBS to things if any different to other CCs).

Thanks

noh

Did you clear the previous statement in full?

phillw

It sounds like you paid it off at the wrong time

With 0% purchases cards you should either

1. Pay the balance off on the day the 0% expires and then not use the card at all until the next statement has been generated (watch out for any pending transactions)

Or 

2. Change the direct debit to pay the full balance in time for the penultimate statement before the 0% expires.

Otherwise you fall into the trap that you get interest free for up to 56 days as long as you pay the full balance every month, because you weren't paying the full balance every month as it was 0%

I'd call up and complain, ask them to explain it, say its very confusing and ask why they don't make it clearer, then ask them to change the direct debit to full balance if you haven't already and ask them to waive the interest.

I always call when paying off a 0% card as that way you can complain if they tell you the wrong thing. Just ask open questions like "is there anything I need to do to avoid paying interest or fees"

liamcov

Thanks all, here's a timeline:

1 Oct - flights paid for
4 Oct - min payment DD goes out
5 Oct - I clear the balance except the recent purchase; DD cancelled and set up again for full amount
11 Oct - 0% promotion ends
12 Oct - new statement with interest added for flight purchase

msallen

What was the "due by" date of the September statement? If it was 4 Oct (as the DD may imply) then any interest on 12 Oct statement will be on the balance that wasn't cleared on that day. 

Any interest on the 12 Oct statement will definitely not be from spend on 1 Oct.

born_again

It will be how much interest you "May" be charged if you do not pay the balance off in full, by the due date on the 12 Oct statement. 

liamcov

msallen said:

What was the "due by" date of the September statement? If it was 4 Oct (as the DD may imply) then any interest on 12 Oct statement will be on the balance that wasn't cleared on that day. 

Any interest on the 12 Oct statement will definitely not be from spend on 1 Oct.

4 Oct was due date and when the DD was collected.

The interest is listed as a transaction on 12 Oct (the statement date, not what interest will be due next month if I don't pay it off) and below under 'summary of balance' it lists purchases and advances - under purchases it has the amount for my flights and next to that (still under purchases) it lists the interest.

As you say there shouldn't be any interest for this transaction so at a loss what they have done.

msallen

So the balance paid on 5 Oct was not cleared by the due date of 4 Oct. The interest charged will be on that.

liamcov

msallen said:

So the balance paid on 5 Oct was not cleared by the due date of 4 Oct. The interest charged will be on that.

No - the interest is listed under purchases. The balance I paid off was a B/T so didn't attract any interest.

noh

It is because the previous months statement balance was not paid off in full by the due date.
Your September statement had a due date of 4th October the minimum payment was paid on that day. The rest was not paid until the 5th.
Purchases are only interest free for upto 56 days if the previous statement is paid in full you didn'y pay in full by the due date you were one day late.
Your flights were purchased on 1st October your statement date was 12th therefore I would expect 11 days of interest to be charged.
Summary of T+Cs https://www.rbs.co.uk/content/dam/royal_bank_of_scotland/personal/credit-cards/documents/the-royal-bank-credit-card-summary-box.pdf

phillw

liamcov said:

Thanks all, here's a timeline:

1 Oct - flights paid for
4 Oct - min payment DD goes out
5 Oct - I clear the balance except the recent purchase; DD cancelled and set up again for full amount
11 Oct - 0% promotion ends
12 Oct - new statement with interest added for flight purchase

Yes, I would expect you would be charged interest for the flights from when the 0% ends as you didn't pay for them.

The statement will include an estimate of the interest, as they don't know when you will actually pay for them.

You would need to have paid the september statement in full to get the flights interest free for a month.

AFAIK all 0% credit cards work like this when the promotional rate ends. All you can do is complain and say it's very confusing, pay the balance of the CC early and ask for the interest to be waived.