Speeding fine on credit card

[Chocoswirl]

I paid a speeding fine on my credit card last week. Checked my banking app today and it’s been processed as a cash advance and I’ve been charged interest on it. I’m really annoyed / upset about this and can’t find any information anywhere either from HMCTS or Bank to say that credit card payments of fines will be treated as cash withdrawals.

Anyone else have experience of this? Is it a mistake / how can I challenge it?

Thanks

In the future you can get help to pay fines in installments.

Thanks. I very much hope there will not be a next time :-(

I've seen a similar situation at work - I knew there were things that are treated as cash. , I've found an extract from Halifax CC t&c (just the first CC that came to mind).

www.halifax.co.uk/creditcards/help-guidance/credit-card-fees.html

I remembering reading somewhere that it’s treated as a cash advance so the card holder can’t then dispute the payment.

Yes, I've just checked a few banks and they all consider government payments owed, including fines, as cash payments and they charge the cash fees and interest from the day of payment and give no free credit period. The Court would give you interest free scheduled payments so best to go with that for your next fines. Or set up a standing order so you are in credit next time and spread your costs. What total annual fines are you expecting over, say, the next 10 years😂

Don't underestimate the level of your fines, like people do with their energy direct debit. It's better to be in credit year end in my experience.

You’re all right, I’ve done some more reading. I’m really annoyed because the instructions sent to me gave me the website to “pay by credit/debit card”, and at no point was there any hint that a credit card might not be the best idea.

Anyway. Live and learn. How to I pay this bad boy off? I cannot repay the whole credit card (currently 2 months into a 12 months interest free period, and I’ve got £3k on there I’ll be chipping away at until next August).

Am I right in thinking (thanks to google) that if I pay the minimum payment amount plus the amount of the fine, and send it over tomorrow, that should mean it’s paid back and stops accruing interest?

You might find that is not the case. The cash advances do not automatically get paid first. The hierarchy of how payments pay outstanding debt is not always how you think it will be and not the same from bank to bank. It's a way of getting more revenue from customers. You need to check your specific terms. Best to be seated when you read them as they might really piss you off. Mine did before I stopped using it.

But the 2009 CARD Act does protect you from it all going to pay off the low interest debt. So the min payment should go to the lowest interest purchases and the rest to the highest which will be the cash advance. But make sure min payment includes interest already charged for cash advance and the fees. These are separate to actually paying back the cash that was used to pay fine.

What about doing a balance transfer. There are a few credit cards about that have no fee for balance transfers and 0% interest.