HSBC Debit Interest shock!!

EddyJ_2

I can't f***ing believe this.

I noticed the other day that HSBC charged me over £5 interest despite the fact that the balance was zero. When I asked them about this, they told me that over a year ago, I made a cash withdrawal and they've been charging me for this ever since!

Get this, "debit interest will be payable from the day of the cash transaction, regardless of if the customer pays the amount in full or not."

So now I'm forever indebt to HSBC??!!!_pale_

KiKi

No, not forever!

You are actually charged interest on ALL purchases and withdrawals from the day they're made. However, if you pay your card off in full, on time, as per the statement, the CC company will 'waive' the interest on the card purchases and you pay none.

That doesn't apply to cash withdrawals, however, and that is standard across all Credit Cards.

In practice it means this:
* you make a withdrawal on the 2nd of the month
* you make card purchases on 3rd, 6th and 7th
* you pay off the balance IN FULL on 15th of the month
* you're charged no interest for card purchases because you paid it off in full...
* ...but you're charged interest on the cash withdrawal from the 2nd to 15th.

When you make a cash withdrawal, because of the way the interest is calculated, you have to effectively pay off your credit card in FULL for two months running to fully clear the balance of the interest on the cash. If you haven't done that, yet, that's why the interest is still there. Just go and pay it off, make the next two payments in full, and it should clear.

Lesson one : never withdraw cash from credit cards.
Lesson two : check your statements more thoroughly - you went a year without noticing!

HTH
KiKi

exel1966

Quite simply, never use a creidt card to make cash withdrawls,deposit funds with gambling sites or exchange currency (mostly) as it will cost you dear !

As has been said it's standard practice on ALL cards to charge for this service.