Post Office Credit Card

[Familyguyfan]

Hi all

I just wanted to let you all know about my experiences with the Post Office, and complain a bit if I'm honest. This might be normal behaviour for all I know, but I've certainly never come across it and wanted to warn others. It could so easily cause problems and lead people into greater debt than they can handle.

I only have a credit card for using overseas and I always pay it off immediately. This website recommended a Post Office Platinum Card and I've had one for quite a few years without incident. However, when returning from holiday this year, the bill was a little higher than usual so I thought I would split the bill- pay half now and half the following month. There would be a bit of interest to pay, but only on half the bill so that was fine.

When the bill arrived, the interest seemed high so I rang to check it. Apparently, if you run up a debt on your Post Office Platinum Card in any month (say £3000), if you don't clear the whole amount in one month, the Post Office will charge you interest on the WHOLE amount (ie. £3000) until the whole debt is cleared. So, if i pay off £2000 of thr £3000 debt, i wont just pay interest on the remaining £1000. I will pay interest on £3000 until i pay off the remaining £1000. This means I am paying interest on the outstanding balance PLUS the amount already paid off. I'm paying interest on money I don't owe!

I've never had this before on any credit card I've had, although I've only ever had a couple, but this seems ridiculous to me. If we were unlucky enough not to be able to afford to clear the bill in one or even two months, the interest payments could prevent you ever having it paid off. This is apparently in the terms and conditions of the card, so I am just drawing this situation to your attention. I have complained to the Post Office and await their response with baited breath.

Just to clarify, this website didn't recommend the card, a famous financial advice website advised it. Mumsnet does money!!

Think that's pretty standard to be honest.

Umm, I think it's standard too. I'm sure my statement each month says if you don't clear the whole balance your interest charge next month will be x so must be the same for my card.

Really? I've never come across this? How can it be standard to pay interest on money which has already been paid back? Isn't that money for nothing? Honest questions!

Sorry, just to clarify. I totally get that I would pay interest on the outstanding balance. That's normal. However, is it still norm to pay interest on the money already paid back? In the case of my example, if you pay back £2000 of a £3000 balance, leaving £1000 outstanding, is it normal to pay interest on £3000 even though you don't owe them that amount?

If you spent £3000, then repaid £1000 you would pay interest the first month on the £3000. Second month you would pay interest on the remaining £2000, unless you cleared it all that month. The interest is payable on the outstanding balance that month, unless you pay the balance in full. You wouldn't however still be paying interest on the full £3000 after the first month.

Hi Rock Chick, that is not what the Post Office have said. Apparently I will pay interest on the full £3000 until every penny of it is paid off, hence my

I would never ever touch anything offered by the Post Office - I don't even use them for posting things. A totally useless organsiation that needs privatising asap.

Never heard of a credit card doing that familyguy although it's a couple of years now since I worked in banking. Are you certain you didn't just speak to a duff employee

Just had a look on their website and it appears they were telling you the right info - although seems a ridiculous way to do it!! I'm not suprised you're about that! It isn't particularly clear on their website, maybe try complaining and see if they will waive some of the interest for you?

I spoke to an employee, then a manager and was told the same thing. Still not happy! I've escalated my complaint so I'll see what happens. Either way, I think it is time to cancel my card and move to someone else.