"Residual Interest"

jamboree

Until recently I had 3 credits all with a fairly hefty balance. I fortunately found myself being able to pay-off all 3 cards in full. One card I sent a cheque on receipt of the statement but 2 I telephoned, asked for a balance to settle the cards in full which I was duly given and paid the advised balance there and then using my debit card. I informed them at the same time that I wished to close the account - they confirmed the instruction had been actioned. I was outraged to find that all 3 companies then sent me bills for "residual interest". Although the amounts were small the principal is unacceptable. I did not receive a statement for one of the cards until some 2 months later (what happened to them I don't know) and found that they had also added late payment charges and were threating debt collection action. After much argument on the telephone they all agreed to waive the charges. None mentioned "residual intereste" when I asked for a closing balance and all added this interest to accounts which they confirmed were closed. One even sent me a letter confirming that my account was closed and that I should destroy the card - no mention of residual interest. There should be some process by which when asked for a closing balance that is exactly what they give. They all claimed that interest can only be calculated when a statement is sent and by the time you receive your statement interest has been racking up since the day they printed it. So how can you ever pay-off and close a credit card account???

CLAPTON

Interest stops when two consecutive balances are paid in full.

Closing an account simply means you can't use it again but everything in the pipeline will still be charged.

The residual interest is simply the interest between the statement date and the date you actually pay and is part of the T&Cs of the account.