Amex repayment allocation - Legal?
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dkwywbicgia1
Posts: 8 Forumite
I've just found out that when you make a payment to Amex credit cards they apply the minimum payment value to standard purchase balance before any other balance. Only any value paid above the minimum payment owing contributes towards the higher interest cash balance before purchase balance.
I thought legally they have to apply any payment to the highest interest balances first?
I thought legally they have to apply any payment to the highest interest balances first?
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They do it the same as everyone else. Highest rate first.0
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That's what I expected. Have had it confirmed though by Amex themselves. I had an existing purchases balance, withdrew £400 cash. Statement arrived. I paid £2 above the minimum payment. They have confirmed I have remaining cash balance of £398. They confirmed that minimum payment comes off standard balance before my cash balance reduces.
Do you think they advised me incorrectly? Or have they found some way around the regs?0 -
They advised you incorrectly.
Most likely is that your cash hadn't statemented.0 -
Definitely had statemented. I will raise it with them and report back.0
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A different person has advised the same thing.
"I would like to inform you that once min due suffice on the card, the payment to towards the cash balance only."0 -
Literally they are completely inept. Eventually after two people telling me the above, finally a supervisor did confirm my minimum payment would have gone against my cash balance. I thought about posting the ridiculous transcript where they cant even understand what I am referring to by a "cash balance" but I think I want to end it all now and go out and enjoy the sunshine.
Thanks for the response zx81.0 -
dkwywbicgia1 wrote: »"I would like to inform you that once min due suffice on the card, the payment to towards the cash balance only."
I have no idea what that means.
Amex T&Cs state
So what's happened is very odd. If your minimum payment is £38 then you are carrying a 'sizeable' balance. So if you'd paid before getting the statement showing the cash transaction, all of the payment would have gone towards that previously statemented 'sizeable' balance and wouldn't have touched the unstatemented cash transaction.We pay off amounts you owe at the highest interest rates before amounts charged at lower interest rates and we'll apply payments to amounts that have appeared on your statements before amounts that have not yet appeared on your statements.
If the cash transaction had been billed and both interest rates were the same, it would likely have gone to the oldest part of the balance (i.e. the purchases carried over). There isn't really any rationale for doing what they've done unless you have a particular type of Amex product that has some peculiarities about it.
Edit - my post crossed with yours, OP. Only odd thing now is that you have been told it 'would' have been applied to your cash transaction rather than it 'has'. Also, how were the other advisors able to confirm the cash balance at £398 - unless they were, quite simply, making it up.0 -
Why are you withdrawing cash on an Amex card?0
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In before zx81 says your credit rating is fantasy0
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