Cash interest repayment
I lost my debit card in the lead up to Christmas and knew I would need some cash for a few outings and presents, so I withdrew a lot of cash from my credit card (more than I actually needed) and made a repayment to my card to cover the whole amount. I made the repayment pretty quickly because the terms of the card say interest on cash starts from day one, the terms also say the repayment will pay off the higher interest items first - in my case it is the cash as the rest of the balance is at 0% for the next 12 months.
However when I got my statement I noticed I had incurred much more interest than I expected and the repayments had been made against the 0% items, while my cash balance was the full amount I had withdrawn in December. If I only make min payments going forward I’ll pay £500+ interest on this cash balance over the next 12 months.
When I asked why the repayment didn’t come off of the cash balance, I was told it was because I made the payment too early and should have waited for it to be “statemented”. The first two people I spoke to (in the credit card team) weren’t particularly aware of this as they had to send the query to someone else to look at and phoned me back.
When I said “ah I thought because I’m paying interest from day one that it would pay against the cash balance, when i decided to withdraw cash I did read up on the cash terms and charges but didn’t spot that, where did I miss it?”
But… at the moment they seem to be telling me it isn’t written anywhere and I should have just *known* (unless the person I spoke to is wrong). So I’m wondering is this standard for credit cards and was I being dumb for not realising? Maybe I should have known but still feels like something that should be in the terms.
If I’d made the repayment a week later I’d still have paid the same interest for the cash that month but also now not be facing an extra £500+ of interest going forward (depending on how quickly I get the balance paid down).
- All Categories
- 341.8K Banking & Borrowing
- 249.7K Reduce Debt & Boost Income
- 449.2K Spending & Discounts
- 234K Work, Benefits & Business
- 606.2K Mortgages, Homes & Bills
- 172.5K Life & Family
- 246.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.8K Discuss & Feedback
- 15.1K Coronavirus Support Boards