how much interest?

[wendilla]

My friend had her credit card statment of £555. She paid £460 which left £95 still to pay. When she had her new statement this month they had taken interest of £10 50p. I thought you only paid interest on what you owed and not the whole bill. She rang and as the person at the other end was not english she could not fully understand. I will ring for her and ask for someone I can understand but I would like your views on it first.

[boxtops]

It all depends on the card holder, and their terms and conditions. the interest may be charged from the date of the purchase, not the date of the statement. One of my cards has just written (hooray) to say they are changing their T&Cs so at last you pay off the highest interest items first, not last. They are all different and there is a great deal in the small print - it should clarify the details on the back of your friend's statement.

[redcrx]

she will have been charged any interest on the £555 from the day of last statement to the day she paid.

its all very confusing sometimes especially if difficult to understand whats being said

[boxtops]

Recrx you said what I meant - date of statement not date of purchase...

[wendilla]

Just checked with her she received her statement on the 10th of June and paid the £460 on the £15th June so the bill was paid long before the due date.But there was still £95 outstanding .

[boxtops]

Sorry to be picky wendilla, but if she paid it on the 15th that doesn't mean that the payment reached her account on that date - one of my cards takes 7 days for a payment made to be credited to the account. The card company will charge interest on the lot until the date the payment is credited.

[bednobs]

if you dont pay the full amount, they charge interest on the whole amount

[wendilla]

Thanks for that Boxtops I will still investigate it for her but she knows now and will pay the lot in future. I have a credit card but I always pay it in full as it does not amout to a lot so I could not help her about interest charges.

[wendilla]

I will ring in the morning for her and will post back here what they say.but I believe you are all right with your replies.

[redcrx]

they are very sneaky at adding interest where we think there shouldnt be, but its all in the small print.

I ran up a very big CC bill once and when i finally had the funds to totally wipe it i called and asked for the final figure and transfered the money that day over the phone to clear it.

a month later i got a bill for over £100 interest, when i called them they said that although they have given me a figure to pay it was only what system was saying was due and not including the interest from last statement date. I stood my ground, i had asked for a final payment figure, not a statement figure, and eventually after a few calls and frustrating conversations i got the final £100+ wiped.

[squarebear]

It is very important to check any small print when signing up for anything.

[wendilla]

Just got back from my friends after trying to get someone to understand and for me to understand. I asked for some one that could speak english better and was told all the lines are busy and some one would ring back before 12 noon. I have now put this in writing for her so will see what the reply is.I know people need jobs but these companies should make sure their staff know what they are talking about Maybe it is me that is thick but I don't think so.