beware of the hidden charges !!!!!! - capital one

YorkshireBoy

KiKi wrote: »

Their direct debit method is NO different. ANY transfer between banks / credit cards / debit cards to make payments takes 4 working days.

I'm sorry but Direct Debits are VERY different KiKi, in that the money both leaves the payees account and arrives at the originators account on the same day. Therefore, they are not subject to the usual 3-4 day BACS cycle.

The only thing the account holder needs to do, if they don't have an agreed overdraft in place, is to ensure the funds are in the current account the banking day before the PAYMENT DUE date as shown on the statement.

KiKi

YorkshireBoy wrote: »

I'm sorry but Direct Debits are VERY different KiKi, in that the money both leaves the payees account and arrives at the originators account on the same day. Therefore, they are not subject to the usual 3-4 day BACS cycle.

Apologies, I meant debit card payment.

benf90

Just thought I'd expand upon what yorkshireboy said above. To keep things simple I'll presume the following, the timescales/dates may not necessarily match your account directly but hopefully this will help explain what has happened:

Statement date - 2nd of each month
Payment date - 16th of each month (the day the payment needs to actually have credit the account by)

On 2nd October a statement was produced and on 15th Oct you called to make the payment. Because of the 3/4 working day delay in debit card payments being applied to the account your payment didn't clear on time by the payment due date (16th).

Therefore, you were charged interest from the date of each transaction. As your card is now accruing interest any further purchases you've made won't be applied at 'up to X days interest free', they will accrue interest straight away from the day they are applied.

On 2nd Nov a statement was produced and the interest that had accrued was applied on this day. You cleared your payment in full by the payment due date. However, interest had continued to accrue on the balance between the statement date (2nd Nov) and when you cleared the balance (16th Nov).

This interest was then applied on your Dec statement. If you clear your balance in full and on time from now on then you shouldn't get any further interest applied (unless you make a cash advance, which you should avoid doing).

Either the person you spoke to at Capital One was new, or they just didn't know how best to explain it.

roastduck

Good Evening ...

Thank you for all your advice and helpful explanation once again.
Depending on the moneysavingexpert website is always better than any Customer Services depts.
oh well, just have to accept that not only i was charged £12 late payment fee but also the accrued £20+ pounds purchase interest fee. This is one hell of lesson i've learned with Capital One cashback card. i am skinned after paying out all these unexpected penalties.

I have used Amex and GEmoney in the past few years with no problems at all. i always thought debit card payment takes place on the same working day that you phone in to make the payment and is not subject to the "3-4 day BACS cycle" ... i never have to deal with this payment interest problem and certainly capital one's Customer Service DID NOT warn me about the payment interest fee ON TOP of the late payment fee... had they warned me in advance , i would have paid in much more money to avoid coughing up unnecessary charges!!!!!!! ...

ok, one last advise please? do you think i stand a chance of claiming my penalty money back? Capital One Customer Service only informed me of the late payment fee NOT the interest purchase penalty!!! help please?

and Merry x'mas to all moneysavingexperts out there ^O^

roastduck

missile

I would write to Capital 1 and ask for an explanation and request a refund. Keep your letter brief and to the point.

brazilianwax

roastduck wrote: »

I have used Amex and GEmoney in the past few years with no problems at all. i always thought debit card payment takes place on the same working day that you phone in to make the payment and is not subject to the "3-4 day BACS cycle" ... i never have to deal with this payment interest problem and certainly capital one's Customer Service DID NOT warn me about the payment interest fee ON TOP of the late payment fee... had they warned me in advance , i would have paid in much more money to avoid coughing up unnecessary charges!!!!!!! ...

Capital One don't accept debit card payments, so you must have done a bank (ie BACS) transfer (which is not the same as a direct debit).

roastduck

ok, will write to Capital One and give it a try anyway! got nothing to lose afterall!

hansi

I have read all the above posts with interest as I have an original Capital One Card which gives me 1% cashback. When I first got the card, I set up a DD for the full amount to be paid off every month, and it works like a dream. I have online access too which is excellent and I am looking forward to spending the £200 cashback which has been credited to my account. :beer: I hope our friend gets his problem sorted out.

roddydogs

Surely Cap 1 is no different to any CC, given the same circumstances?

michaels

Can anyone confirm - my understanding is that debit card payments do go instantly so the payment made that took 4 days must have been by another route?