Repaying credit card balance

jenx_2

I thought I would query whether anyone has had the same problem with MBNA that I found out about today - I always pay off my balance but I was waiting for a cheque to clear before transferring the moneys - to make sure I had paid moneys in time I paid just over half of the sum due, then by the due date when the cheque had cleared, I paid the balance to clear. I checked my statement to see the funds had arrived and found I had been charged interest - on telephoining I was told that as the sum was not paid in one hit interest is charged.
Now Martin I know you advocate setting up a direct debit for the minimum to save a £12 charge - how do you avoid being caught - and having doiscovered your advice I am applying for an Amex cashback card:mad:

NickX

jenx wrote: »

on telephoining I was told that as the sum was not paid in one hit interest is charged.

I don't think this is correct - as long as the entire balance is settled before the due date it does not matter if several payments are made which total to the amount due.

I suspect that either one of the payments did not clear in time, or they didn't quite add up to the total amount on the statement.

methusala_2

this is a computer software glitch. On your statement date the computer looks at your balance and then at the payment and decides ah the payment of xxx leaves a balance of xxx and so charges interest on that sum till it sees the next payment and then stops charging. However it has collated an interest charge that it wants you to pay. The person you spoke to on the phone was incorrect and should have dealt with the error. Ring again and if your told the same thing as last time ask to escalate your query to a supervisor who will be more knowledgeable. That is of course always dependant on none of the points raised by NickX apply.

DestroyingAngel_2

jenx wrote: »

I thought I would query whether anyone has had the same problem with MBNA that I found out about today - I always pay off my balance but I was waiting for a cheque to clear before transferring the moneys - to make sure I had paid moneys in time I paid just over half of the sum due, then by the due date when the cheque had cleared, I paid the balance to clear. I checked my statement to see the funds had arrived and found I had been charged interest - on telephoining I was told that as the sum was not paid in one hit interest is charged.
Now Martin I know you advocate setting up a direct debit for the minimum to save a £12 charge - how do you avoid being caught - and having doiscovered your advice I am applying for an Amex cashback card:mad:

You say you always pay off the balance in full, so that means you never see interest on your statements. Interest would start to accrue on a daily basis on any balance on your account by the due date. Your cheque for over half the sum cleared in time, so you made the minimum payment required.

However, your other payment occurred AFTER the due date, (unless I've read what you said wrongly), so when your next statement was printed, it showed that you paid by cheque for over half the balance on time, but that left a balance, which attracted interest. You got charged interest on the balance that was owed. Your 2nd payment simply did not get there on time.

If both your payments had cleared before the due date, then you would not have been charged interest, because there would not have been any balance. It doesn't matter how many payments you make, or what methods you use; as long as the payments go in on time and clear the balance in full, you will not be charged interest.

Now you're looking at paying your balance in full for the next 2 consecutive months for the interest to fall off again. What's happened to you is NOT a bank error, it's your own misunderstanding of the terms & conditions.

DestroyingAngel_2

methusala wrote: »

this is a computer software glitch. On your statement date the computer looks at your balance and then at the payment and decides ah the payment of xxx leaves a balance of xxx and so charges interest on that sum till it sees the next payment and then stops charging. However it has collated an interest charge that it wants you to pay. The person you spoke to on the phone was incorrect and should have dealt with the error. Ring again and if your told the same thing as last time ask to escalate your query to a supervisor who will be more knowledgeable. That is of course always dependant on none of the points raised by NickX apply.

Sorry, it's not a computer software glitch. Please see my previous post for the correct explanation. It was NOT a bank error, rather a misunderstanding of the t&cs by the OP.

bengal-stripe

jenx wrote: »

.......then by the due date when the cheque had cleared, I paid the balance to clear. I checked my statement to see the funds had arrived and found I had been charged interest...:mad:

Did you pay by the due date (let's say the 15th)? The money would have arrived with the bank on the 17th (it takes two days to pay by Debit Card, other means might even take longer). "Due" means the transaction must be completed and money must have arrived in the account, it is not the date to instigate payment.

Check your statement: what date was the payment due and when was it received?