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Beware - Balance transfer ripoff

rfallows
Posts: 4 Newbie
in Credit cards
Beware - we transferred a balance to a credit card, at the time paid the 2% fee (£45) and were informed that we had free interest on the balance for one year and would incur no interest on purchases provided the purchases were paid off. Three months later, we get a statement with interest charged on purchases. On complaining, we were informed that as we no longer received free interest on purchases, the payments we made were used to clear the balance transfer NOT the purchases and hence the interest. This clearly negates the whole purpose of the balance transfer as the only way not to incur interest is to pay the whole balance off so why do the transfer!!. The credit card company admitted on the phone that we were misled at the time of the balance transfer and that the operator at that time was probably not trained enough to give us the correct information. Needless to say we have just written a strong letter of complaint. Check your terms carefully as to which part of your balance your payments will be used to clear.
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Beware - we transferred a balance to a credit card, at the time paid the 2% fee (£45) and were informed that we had free interest on the balance for one year and would incur no interest on purchases provided the purchases were paid off. Three months later, we get a statement with interest charged on purchases. On complaining, we were informed that as we no longer received free interest on purchases, the payments we made were used to clear the balance transfer NOT the purchases and hence the interest. This clearly negates the whole purpose of the balance transfer as the only way not to incur interest is to pay the whole balance off so why do the transfer!!. The credit card company admitted on the phone that we were misled at the time of the balance transfer and that the operator at that time was probably not trained enough to give us the correct information. Needless to say we have just written a strong letter of complaint. Check your terms carefully as to which part of your balance your payments will be used to clear.
You of course should take some responsibility for this yourself. No good blaming an operative. It is all clearly laid out in the terms and conditions but you obviously could not be bothered to read them and the story the operative gave you was the one you liked.0 -
No need to read specific terms, if you know that practically EVERY BT card does this! It's standard....much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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The way to exploit this scam is to zero the balance before making the transfer to the card, transfer the balance, THEN TEAR UP THE CARD, and use another one for purchases which you pay off each month.
I have been borrowing from Barclays at 2.9% since 2004 in this way (they had a short-lived promotion for balance transfers at 2.9% for the life of the loan, however long) the only thing I have to do is make the minimum payment each month by SO. I have put enough money into a Barclays Savings account at 5.0% or so to pay off the loan, so in effect I am using Barclays money to earn a net income on interest from Barclays.
It's a small triumph against the Bank, but it makes me feel good.
The "balance transfer" scam is never-the-less the way in which banks ruthlessly exploit the lack of financial awareness of their customers, in the best traditions of the high street loan sharks they resemble.0 -
You of course should take some responsibility for this yourself. No good blaming an operative. It is all clearly laid out in the terms and conditions but you obviously could not be bothered to read them and the story the operative gave you was the one you liked.
We all know when we ring contact centres the level of service you receive depends on the person who you are speaking to. Some very well trained and others make it up as they go along. This is why we should all read terms and conditions and if something goes wrong and is outside of the t+c's they we can certainly complain.
Unfortunately alot of us when we phone companys we do not always understand or take in what we are being told and sometimes put our own interpretation on things.0 -
Beware - we transferred a balance to a credit card, at the time paid the 2% fee (£45) and were informed that we had free interest on the balance for one year and would incur no interest on purchases provided the purchases were paid off. Three months later, we get a statement with interest charged on purchases. On complaining, we were informed that as we no longer received free interest on purchases, the payments we made were used to clear the balance transfer NOT the purchases and hence the interest. This clearly negates the whole purpose of the balance transfer as the only way not to incur interest is to pay the whole balance off so why do the transfer!!.
The way to really beat these guys is to have two separate cards (at least). Use one for 0% purchases (you can get up to 12 months at moment with HSBC). Use the other for 0% balance transfers (15 months with Virgin Money at the moment).
If you're now left with a balance to pay off that's costing you interest, you could consider switching it to another 0% card.
So long as you set up the direct debit to repay the minimum, save up the money to actually pay off the cards in a high interest account or ISA, you can turn the tables on them.
Everyone has their fingers burnt at least once by these jokers. That's why we now go out of our way to take full advantage of their carefully worded T&C's to profit from them now
Don't be put off the whole thing, just read up on the articles and plan your revenge"A child of five could understand this. Fetch me a child of five." - Groucho Marx0
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