FNB - Credit Card information

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FoulFiend

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Good morning, MyBroadband.

I have been on a backwards and forwards email thread with FNB to try and get information about my credit card.

Each month I am being charged 5% of the outstanding balance on the credit card. This equates to 60% interest over a year. The interest rate shown on my credit card statement is 22.25% per annum, which is 1.854% per month...

For some reason I am designated as a minimum payer, (hence the 5% payment each month), but I put probably 6- 8k back on my credit card each month so I am unsure why I am a minimum payer?

I have tried asking FNB the following questions, but I cannot get an answer (I have asked the same questions probably 3-4 times on the email thread with them but they refuse to answer):

1) Where does it state in the terms and conditions of the credit card that I will be charged 5% of the outstanding balance each month?
2) Why am I being classified as a minimum payer when I put 6-8k back on the credit card each month?

If anyone out there knows about this, or knows more than me, or has a direct contact number or link to FNB who can actually answer these 2 questions please let me know?

Thank you.
 
FoulFiend said:
Good morning, MyBroadband.

I have been on a backwards and forwards email thread with FNB to try and get information about my credit card.

Each month I am being charged 5% of the outstanding balance on the credit card. This equates to 60% interest over a year. The interest rate shown on my credit card statement is 22.25% per annum, which is 1.854% per month...

For some reason I am designated as a minimum payer, (hence the 5% payment each month), but I put probably 6- 8k back on my credit card each month so I am unsure why I am a minimum payer?

I have tried asking FNB the following questions, but I cannot get an answer (I have asked the same questions probably 3-4 times on the email thread with them but they refuse to answer):

1) Where does it state in the terms and conditions of the credit card that I will be charged 5% of the outstanding balance each month?
2) Why am I being classified as a minimum payer when I put 6-8k back on the credit card each month?

If anyone out there knows about this, or knows more than me, or has a direct contact number or link to FNB who can actually answer these 2 questions please let me know?

Thank you.
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FNB's support staff these days via the callcentre or email are all total idiots, they use the most junior inexperienced low paid staff, they can't answer anything but the most basic request. I’m surprised they have even replied to your emails because generally they'll reply to your initial request and then ignore any subsequent replies you send.

They probably also charge some kind of facility fee on top of the interest they charge or you are including the monthly card fee in your calculations.
A minimum payer is probably anyone that doesn't settle their outstanding in full each month.

Why are you not settling the card in full each month, it makes no sense to do it any other way?
 
What are you actually asking?

When you applied you were likely given one of two monthly payment options, minimum or full. The minimum monthly payment is likely 5%. If you don't pay manually before the debit order date the 5% payment will automatically go off.
 
gregmcc said:
No it doesn't. You can't just multiple 5% x 12 and say it's 60% over the year. It's 5% a month, and still 5% a year.
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It is 60% interest over the year.

If I'm charged 5% per month of the outstanding balance, and 5% the next month, and so on. Over the whole year that will equate to 60% interest. See below explanation (most recent statement):

R42,551.16 outstanding
= R2,127.55 payment due (5%)

If I left this and didn't attend to it, it would compound:

R2,127.55 x 12 = R25,530.69

R25,530.69/R42,551.16 = 60%
 
FoulFiend said:
It is 60% interest over the year.

If I'm charged 5% per month of the outstanding balance, and 5% the next month, and so on. Over the whole year that will equate to 60% interest. See below explanation (most recent statement):

R42,551.16 outstanding
= R2,127.55 payment due (5%)

If I left this and didn't attend to it, it would compound:

R2,127.55 x 12 = R25,530.69

R25,530.69/R42,551.16 = 60%
Click to expand...
The 5% is not interest, it is your automatic repayment.
 
Ďąhristopher said:
What are you actually asking?

When you applied you were likely given one of two monthly payment options, minimum or full. The minimum monthly payment is likely 5%. If you don't pay manually before the debit order date the 5% payment will automatically go off.
Click to expand...
I guess I am asking the same things I'm trying to get out of FNB:

1) Where does it state in the terms and conditions of the credit card that I will be charged 5% of the outstanding balance each month?
2) Why am I being classified as a minimum payer when I put 6-8k back on the credit card each month?

Below is the interest rate shown on my CC statement, my question is, this shown 22% interest seems utterly unrelated and irrelevant when they just charge me 5% of the outstanding balance each month (which I never agreed to?)

It's not the end of the world, I have zero'd my credit card, it is more me just trying to find out from FNB (or here) where the small print is?

The whole point of having the credit card (to me anyways) was to gather eBucks (never gathered any eBucks -> another thread) and to use in an emergency for large sudden payments, which can then be paid back over time (at 22% annual interest, or 1.83% interest per month).
 

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FoulFiend said:
Each month I am being charged 5% of the outstanding balance on the credit card. This equates to 60% interest over a year. The interest rate shown on my credit card statement is 22.25% per annum, which is 1.854% per month...
Click to expand...
The 5% includes a capital payback portion, it is not just interest, so it does not equate to 60% interest over a year.

Now that you have been schooled, will you stop being argumentative about this and listen to us who know how these things work? If the answer is yes, then I will move to the second portion.
 
FoulFiend said:
It is 60% interest over the year.

If I'm charged 5% per month of the outstanding balance, and 5% the next month, and so on. Over the whole year that will equate to 60% interest. See below explanation (most recent statement):

R42,551.16 outstanding
= R2,127.55 payment due (5%)

If I left this and didn't attend to it, it would compound:

R2,127.55 x 12 = R25,530.69

R25,530.69/R42,551.16 = 60%
Click to expand...


R42,551.16 is a large amount to owe on a credit card.
 
A credit card is a source of delicious pizza for a bank if you do not pay back the full amount every month (before the due date).

They will ream you up the tradesman's entrance with fees and compounded interest if you do not.
 
gregmcc said:
You are completely not understanding this. It's not 60%.
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Whatever it's called, whether it's interest, pay back, fees owed, payment on capital amount, minimum monthly payments, outstanding balance repayment (you can call it what you want) etc, it doesn't matter. I would be paying back 60% on that outstanding amount. Conceptually it's 60% interest.
 
Having a credit cardis a game of wits, you play it wrong then it will run you down into a big hole of debt which is difficult to dig yourself out but if play it right your life will be better off it. But seeing that you have one leg in the whole already then better stop emailing and calling instead go to the bank straight to avoid having high blood pressure on top of the interest.
 
Stinkbeaver said:
Having a credit cardis a game of wits, you play it wrong then it will run you down into a big hole of debt which is difficult to dig yourself out but if play it right your life will be better off it. But seeing that you have one leg in the whole already then better stop emailing and calling instead go to the bank straight to avoid having high blood pressure on top of the interest.
Click to expand...
I've zero'd my CC, this was more me trying to find out information.
 
FoulFiend said:
Whatever it's called, whether it's interest, pay back, fees owed, payment on capital amount, minimum monthly payments, outstanding balance repayment (you can call it what you want) etc, it doesn't matter. I would be paying back 60% on that outstanding amount. Conceptually it's 60% interest.
Click to expand...
Holy schit...cut up your CC immediately.

With this kind of mathematical gymnastics, your are a financial danger to yourself and a disaster waiting to happen.
 
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