Abbey error ?

sparkymark_3

My previous Abbey (card is the grocery cashback offer version held since October last year) statement stated "£0.00 estimated interest on next statement", got new statement today - interest £8.28 (no cash advances)
Have they made an error ?

jonesMUFCforever

What about transactions that count as cash advances eg online gambling, bingo or even in certain cases buying a gift voucher?

sparkymark_3

nope not purchased any of above, 6 months interest free purchases opening offer expired perhaps but the statement certainly claimed zero interest to be charged on next statement ?

NickX

sparkymark wrote: »

nope not purchased any of above, 6 months interest free purchases opening offer expired perhaps but the statement certainly claimed zero interest to be charged on next statement ?

OK they haven't made an error then.

The interest is accrued from the end of your promotional rate. Sometimes the statement says 0% but if you don't clear the balance BEFORE the end of the promotional rate then you WILL incurr interest.

Always best to be exactly sure when a promotional rate ends. Maybe a lesson learnt for next time.

NickX

Al_Mac wrote: »

If you were in a 0% period, then the estimated interest on the next statement would by 0. If the 0% has just finished, then the estimated interest will be greater than zero.

The estimated figure is based on you only making the minimum payment. Should say that somewhere on the statement.

I agree Al Mac, however if the promotional End Date is after the statement date, but before the payment date then the statement may show an estimate of zero, but if the whole balance is not cleared BEFORE the promotional expiry date then interest is accrued. I have always thought this is a bit sneaky of the Credit Card companies.

Hence my advice to know the PRECISE promotional expiry date.

NickX

Al_Mac wrote: »

Sneaky or clever. I'm sure RBS, giving me money to put into my offset, they would consider sneaky

Sneaky AND clever I'd say. And yes Stoozing does kind of give you a feeling of getting one over on the card companies, not that I'm going to lose any sleep over them - even if RBS are having to issue new shares to raise £13Billion for its cashflow.

Overthetop

sparkymark wrote: »

My previous Abbey (card is the grocery cashback offer version held since October last year) statement stated "£0.00 estimated interest on next statement", got new statement today - interest £8.28 (no cash advances)
Have they made an error ?

This happened to me with MBNA I phoned and complained stating that if they had sent notification that my interest free period was coming to an end I would have paid the bill in full the month before, they intially offered me £10 off my interest, which i thanked them for but again stressed if i had been advised that my interest free period was coming to an end I would have paid the last bill in full. They then refunded all the interest that had been charged.

NickX

Oh according to Financial Times its just £12B, apparently a record Rights Issue from RBS

http://www.ft.com/cms/s/0/2669e7be-103f-11dd-b8d6-0000779fd2ac.html?nclick_check=1

YorkshireBoy

When Abbey brought their cards back 'in-house' from MBNA, they plagiarised many of the MBNA T&C's, eg the £5 minimum payment.

If they also adopted the same 'end of promotion' date, then this would have been a statement date...not a payment due date, or any other date.