I took advantage of a '0% for 9 months on balance transfers' offer on my zero balance NatWest credit card and paid off £6600 worth of debt on other cards. With a 3% balance transfer fee, that meant a total of £6798 now owing on my NatWest card. However, what isn't made clear is that NatWest classify the balance transfer fee as a purchase, which is not included in the 0% offer but is charged from the transaction date, effectively making it impossible to have a balance at 0% unless you pay off the balance transfer fee on the same day that the transfer is made! So my June statement shows an additional interest on the fee, charged at the purchase rate of 1.313%. In this case an extra £1.69. Not a huge amount I admit and when I complained to NatWest they pointed me in the direction of clause 5 (b) of the Terms and Conditions but graciously refunded the amount. I have had many credit cards over the years but have never come across this before. Has anyone else fallen for this NatWest ruse or knows of any other credit card company that does the same?
It is quite normal for fees to be counted separately.
You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee.
In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free.
Mike
It is quite normal for fees to be counted separately.
You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee.
In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free.
Mike
It is quite normal for fees to be counted separately.
You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee.
In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free.
Mike
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Is NatWest pulling a fast one?
I took advantage of a '0% for 9 months on balance transfers' offer on my zero balance NatWest credit card and paid off £6600 worth of debt on other cards. With a 3% balance transfer fee, that meant a total of £6798 now owing on my NatWest card. However, what isn't made clear is that NatWest classify the balance transfer fee as a purchase, which is not included in the 0% offer but is charged from the transaction date, effectively making it impossible to have a balance at 0% unless you pay off the balance transfer fee on the same day that the transfer is made! So my June statement shows an additional interest on the fee, charged at the purchase rate of 1.313%. In this case an extra £1.69. Not a huge amount I admit and when I complained to NatWest they pointed me in the direction of clause 5 (b) of the Terms and Conditions but graciously refunded the amount. I have had many credit cards over the years but have never come across this before. Has anyone else fallen for this NatWest ruse or knows of any other credit card company that does the same?
Answers
kevinpritchard
,06 June 2012
,Lovemoney.com
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Answers
It is quite normal for fees to be counted separately. You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee. In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free. Mike
It is quite normal for fees to be counted separately. You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee. In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free. Mike
It is quite normal for fees to be counted separately. You shouldn't have needed to pay off the £198 instantly, however you would have needed to have paid ALL £198 off by the first payment date. If you paid a lesser amount because that was the minimum, you would have been charged interest on the whole of the fee. In subsequent months, you would have to pay whatever you had spent in the month plus a contribution towards the £6600 in order to stay interest-free. Mike