CC Company have messed up - where do I stand?

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CC Company have messed up - where do I stand?

16 posts & 11 voices | Started 9 months ago by monkeyp | Latest reply from monkeyp

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monkeyp - Member

Here's the dilemma - my credit card company has messed up. Basically, as I don't recieve paper statements any more, I have been a bit lazy in checking my account carefully and have just noticced that they have failed to charge me interest on my balance for - well, it appears forever (we are talking over several years potentially) - as far back as the online records show.

I am guessing that at some point I had a 0% deal on the card which they have failed to terminate.

Where do I stand with this? I could feasibly be charged a huge amount in back dated interest, which would obviously not be a good thing.

What should I do - come clean? pay the balance and cancel the card and hope they don't notice?

Posted 9 months ago #
jam bo - Member

is it tesco? A workmate has a card that was interest free for 12 months and still is about 36 months later.

Posted 9 months ago #
monkeyp - Member

Hope - HSBC

Problem is that I have all of my other accounts/mortgages etc with them, so can't exactly sneak away from them!

Thi sis the problem with online banking - the online statement seperate out the spending from the interest, so I just didn't notice.

I found some old paper statements and even they say on the top 'no interest has been charged for this period'!

God knows how long this goes back

Posted 9 months ago #
monkeyp - Member

anyone?

Posted 9 months ago #
Helios - Member

Ummm... Slightly daft question - but do you pay your balance in full each month?

Posted 9 months ago #
mastiles_fanylion - Member

A perfectly sensible question

I have never paid interest on my credit card AND I get cashback...

Posted 9 months ago #
monkeyp - Member

Nope - hence why I'm asking

Posted 9 months ago #
sugdenr - Member

Legally, you likely owe them the money. If and when they notice, they may try to charge you it all but will have real issues with that. All you will have to do is take it to the Banking Ombudsman and make a stink.

Banks owe a duty of care to customers to admin your fiances with care, if they forget to bill you interest (and you genuinely didnt realise) then after a reasonable time for them to correct their mistake, that is their problem.

You can either keep using it and benfitting until they realise, then cut a deal with them only paying the interest for the previous,say, year - or cancel the card and get another - you could just phone them up and ask them to clarify the terms of your card - thereby flushing out any mistake, but this might trigger a bill, or they may well clean the slate in gratitude at your honesty.

Posted 9 months ago #
monkeyp - Member

"clean the slate in gratitude of my honesty"

Really - mmmm - I think that may be unlikely.

I think I will have to take my chances, as either way it's likely I shall get a bill. I will keep the account, but not use it as the act of cancelling the card may also trigger an enquiry.

Posted 9 months ago #
ScottChegg - Member

They can't really backdate the interest, as it's calculated monthly on the balance at that time, at that particular interest rate. They have to state each month whta rate you are on, and what the next months interest will be, by law. The worst they could do is start charging you interest one month at a high rate to punish you.

Otherwise, I'm sure you are in the clear.

Have you considered paying it off?

Posted 9 months ago #
clubber - Member

They can't really backdate the interest, as it's calculated monthly on the balance at that time, at that particular interest rate.

I suspect that they'd have no problem at all working that out - they have clever computerz and stuff y'know

Posted 9 months ago #
treaclesponge - Member

They may well be able to work it out but its the question of whether you would have had that balance had you been due to pay interest. If its on 0% then why clear it all? No need, it wont cost any more to leave it there, pay minimum payments and free up some cash. However if interest had been charged then you may be more inclined to pay more or all off to save getting hit. They cant really back date it as the situation may have triggered a different reaction by the bill payer.

Posted 9 months ago #
breatheeasy - Member

0% offers get cleared off first, that's the magic trap on c/cards. You might think you spent £200 this month and paid £200 off you interest earning total (i.e paid off in full) but you didn't touch the £200 that gets hit with 18% APR, but took £200 off you 0% balance.

To be honest, I'd say eventually they'll realise. Then they'll ask you for, say, £500. You kick up a fuss, complain to the finance section of Daily Mail, blah blah, they'll say, okay, just give us £200.

Posted 9 months ago #
bazep - Member

breatheeasy - that's not the case anymore though - there was a review of the rip of cc companies and they had to switch that round (certainly the case for my cards)

Posted 9 months ago #
BigJohn - Member

I agree with treaclesponge. If you knew you were getting hit with interest you would have cleared the balance either with cash sitting in an account that was earning you nothing, or with a 0% balance transfer from another card company. Tell them (if they ask) to swivel.

Or tell them you're a Muslim, and therefore you're not permitted to pay interest.

Posted 9 months ago #
monkeyp - Member

I am planning on paying it off and cutting the card up but not cancelling it - that way I don't trigger any final bill which may be the point where it's noticed.

The account has been used on and off for a good few years with balances ranging from zero to near the limit when Mrs MonkeyP was on maternity leave/big purchases etc, so god knows how much interest I have missed, but I am guessing it is a lot more than I would be able to pay in a lump sum!

Posted 9 months ago #

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