'Paid in full'...apparently not!!

[rosinacross]

You may think this a trivial matter but, for others, it may be more significant.

Extract from a letter from Customer Support of M & S Money credit card dated 16th October, 2007.

"You were charged interest as you made a gambling/cash transaction on 14th April, 2007. Interest is automatically charged at a typical monthly interest rate of 1.597% (variable) on cash transactions from the day they are made, whether the account is paid in full or not. There is also a 2.5% cash handling fee with a minimum charge of £2.50. Interest will continue to be charged until the amount is cleared".

Subsequently I had a telephone conversation with the writer of the letter who was unable to tell me how much I owe, even though I clear my credit card each month, or how long it will take for me to pay the interest. It could be months, it could be years, she could not tell me. She just repeated the phrase quoted in the letter.

What happened was that on 14th April, 2007 I transferred £40 to William Hill for a 'flutter' on the Grand National. Months earlier I had transfered a small amount then transferred my winnings back to the card. No problem.

This time I had been charged £2.50, described as a Gambling Transaction Fee.

On 3rd May I transferred £5.15 to William Hill to close my account with them. I was charged another £2.50 for this transfer.

I did not know the charges on these two transactions until I received my statement dated 8th May, 2007. There was an interest debit of .58p.

I was rather shocked, but cleared my credit card as usual.

Since then, I have been charged interest each month relating to those transactions even though my credit card is cleared, well on time, each month.

When I wrote to M & S Money about this monthly charge, I thought it had to be a computer error. I had a 12 month interest free loan of £2876 incurred on 8th February, 2006. I paid that off on 24th October, 2007.

Over the years I have spent thousands with M & S. My credit limit is £6,500. My repayment record is impeccable. I feel that I have been 'turned over' by this financial business. All I want to do is pay up and never do business with these people again.

Can anyone help me understand how one can incur a debt of an indeterminate amount payable over an indeterminate time, even though any outstanding balance is cleared each month?

I would appreciate any comments.

Rosina

[Hippy-chick]

Hi Rosina

 

Welcome to CAG.

 

No, I do not think this is a trivial matter.

 

I'd suggest that you repost this is the General Debt forum here:

 

http://www.consumeractiongroup.co.uk/forum/general-debt/

 

(Just copy and paste it)

 

Sorry not to give you more advice now, but it is late at night. However, post there and experienced members will tell you how to chllenge this.

 

Good luck, and see you there,

 

HC

xx