# Credit Card Interest Scam



## Mug (11 Jun 2004)

Call me a mug but today I learned that credit card companies levy interest on the whole o/s balance unless you clear the whole thing! A highly intelligent friend rang to tell me that he got a statement for €5,333. He paid €5,000 because he was too lazy to write out the rest, thinking he'd clear it next month. He was billed €150 interest. When he queried he was told by AIB that the rate was on the full balance even though he paid off 5k and in time too. AIB said they all do this.

Is this true? I'm frankly gobsmacked. MUG


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## rainyday (11 Jun 2004)

Yep - they all do it. Everyone makes this mistake once!

The other little angle is that in the next month, the interest on the interest (in your friends case, the interest on the €150 interest) starts being charged from day 1 of the cycle and applies EVEN if the bill is paid in full next month. So it can take 2-3 months to get clear of all interest charges.


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## Mug (12 Jun 2004)

*Well well*

Thanks. Jeez is this caught in the APR calculation because, and I'm no mathematician, it must drive it wild especially if you don't clear each month???


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## rainyday (13 Jun 2004)

*Re: Well well*

I'd guess it is, but I don't know for sure.


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## sadmak (3 Aug 2004)

*Re: Well well*

Every month when i get my AIB credit card statement I can't tell what the interest being charged is!

Can anyone enlighten me as to how i can figure this out?


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## Elcato (3 Aug 2004)

*Re: Well well*

Its written on the right hand side of the statement. It's listed in a seperate column about half way down.


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## ninsaga (6 Aug 2004)

*Re: Well well*

I think I must be one of BOI's CC divisions worst customers.

Reason being is that they get sweet f*@k all from me. I have used the card heavily - particularly this yr with online purchases, holidays etc but they get zero from me on interest payments - ever. .......granted they are squeezing me on forex rates alright though the feckers!

ninsaga


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## Repaymentator (11 Aug 2004)

*Re: Well well*

They also take a healthy commission on the whatever you buy with the card. So there's no grounds for giving them even a nanosecond of sympathy.


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## sfag (1 Oct 2004)

*bills*

I didn't think I got charged interest on the amount I'd paid off in time in the past but I must watch out for it in the future. 

You know you can always ask for part of the interest to be repaid to you on the basis that you didn't know. You'll get it back because customer power is (or was) pretty big when it comes to credit cards. I've done it several times. Just act indigent. 
It's because you can easily change companies - well you could until the government slapped a 40 quid fee on. 

The other thing to watch for is further use of your credit card whilst even the smallest amount is outstanding - you will be charged from the start without no interest free period.

I used to avoid this by having two credit cards and when I didn't pay off in time I switched to the other. Again the government put paid to this with their love of taxing everything they can think of.


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## daltonr (6 Oct 2004)

*Re: bills*

Thanks for pointing this out.
In all the years I've had a Credit Card I never figured this out.
And I'm the kind person who actually reads the terms and conditions.

I'll have to go back and see how I managed to miss that one.

They think of every angle don't they!!!!

-Rd


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