0% CREDIT CARD - WHY HAVE I BEEN CHARGED INTEREST?

JulieDH

cymruchris said:

JulieDH said:

I assumed after the 0% interest period had ended it would become just like a normal credit card and I wouldn't get charged interest if I paid off the balance IN FULL as Martin Lewis says?  Is this not the case?

Yes - but you hadn't paid it IN FULL by the last payment due date of your promo period by the sound of it. You'd have had to have paid IN FULL by the time that last direct debit dropped. So in effect you've paid 2 days interest on your remaining balance after that last promotional period direct debit was taken.

I imagine your promo period ended with your final statement - tied in to your last 'due date' - you paid the direct debit on the due date - and until that point you stayed completely interest free.

From midnight that day, any remaining balance would begin to accrue interest as it wasn't fresh spend, it was an old, now interest bearing balance.

To clarify it you can give them a call - but I imagine this is what they'll say.

Thank you for your explanation.  I understand now.

cymruchris

JulieDH said:

cymruchris said:

JulieDH said:

I assumed after the 0% interest period had ended it would become just like a normal credit card and I wouldn't get charged interest if I paid off the balance IN FULL as Martin Lewis says?  Is this not the case?

Yes - but you hadn't paid it IN FULL by the last payment due date of your promo period by the sound of it. You'd have had to have paid IN FULL by the time that last direct debit dropped. So in effect you've paid 2 days interest on your remaining balance after that last promotional period direct debit was taken.

I imagine your promo period ended with your final statement - tied in to your last 'due date' - you paid the direct debit on the due date - and until that point you stayed completely interest free.

From midnight that day, any remaining balance would begin to accrue interest as it wasn't fresh spend, it was an old, now interest bearing balance.

To clarify it you can give them a call - but I imagine this is what they'll say.

Thank you for your explanation.  I understand now.

Annoying though yes. Luckily you paid the balance remaining 2 days later rather than at the next billing cycle - you'd have paid a lot more then! A good learning curve for any future interest free offer you use though....

born_again

Give then a call, given the amount. Be nice & say you did not fully understand. They may let you off. 

MalMonroe

Hi, I agree with born_again, above. Even though you've closed the credit card account. It's only a small sum, as you say - but it's really annoying. 

It's worth a try. Although a phone call may be more expensive than what they say you owe . . . but they may want to be kind and offer the goodwill gesture.