Interest calculation on credit cards

[morkhans]

I pay my CC in full each month. I discovered on this months statement that I stuffed up and short paid by R260 (I missed the fact that my yearly CC fees were included). This resulted in R142 worth of interest fees. Upon enquiring on this exorbitant amount I was told that if I don't pay the full amount interest is calculate on the full amount and not the difference. Sounds a bit exorbitant to me?

 

[xrapidx]

Yip... that's correct.

 

[morkhans]

Yip... that's correct.

Sheese. I thought the NCA was putting and end to silliness like this.

 

[Zdenek]

Well see it this way rather...
The small print, that you agreed to, says that you WILL pay the ENTIRE amount back by the due date.
Since you didn't pay back the entire amount, you didn't stick to the agreement.
So they've done nothing wrong I'm afraid, it is in fact you who defaulted (albeit in this case an honest mistake...).

 

[abuusamah]

Most cc t&c's used to state that interest is charged from day 1. The waiver of any interest charges for payment on time was at the discretion of the bank. Recently I noticed that some banks changed this making it a term of contract.

So it seems they decided to charge you interest for the full amount of each transaction from date of transaction until date of payment ?

need to study your contract to see if they were wrong or right