What interest rate are fees charged at?

kristi459

Anyone know the answer to this? For example, lets say I have a card with 15% interest on purchases and 20% on cash advances - if I get hit with a $30 over the limit fee, would this accumulate interest at 15% or 20%? (or higher?)

Any thoughts?

jamalfatty

Normally at your standard contract rate so in this case 15%, from October 1st though they wont be able to charge interest on any default fee's for the first 28 days and then will only be able to charge simple interest

leicsmarkyr

jamalfatty wrote: »

Normally at your standard contract rate so in this case 15%, from October 1st though they wont be able to charge interest on any default fee's for the first 28 days and then will only be able to charge simple interest

Really? What this about then?

NickX

jamalfatty wrote: »

from October 1st though they wont be able to charge interest on any default fee's for the first 28 days and then will only be able to charge simple interest

Very interesting info here - thanks.

jamalfatty

leicsmarkyr wrote: »

Really? What this about then?

The CCA was updated in 2006 and some of the changes come into effect on 1st October this year. One of which being what I put above.

See paragraphs 34 & 35 of the link below for the legal mumbo-jumbo of it

http://www.opsi.gov.uk/acts/acts2006/en/ukpgaen_20060014_en.pdf