Blog

Unfair Credit Card Charges

Thursday 6th August 2020

It is vital to ensure payment systems are secure and fair with terms and conditions clearly explained as we head towards a cashless society.
Some credit card providers including HSBC are being rather punitive when it comes to paying the monthly card statement. If the minimum payment is paid then the amount of interest charged on the unpaid balance is explained. If the entire monthly balance is paid by the due date then no interest charges occur. Where the unfairness happens is when more than the minimum payment is made though less than the full amount is paid by the due date. In this instance interest is charged on the full statement amount , even if only a tiny amount of the full balance is unpaid by even 1p.
When challenged about this apparent unfairness HSBC claimed it is in their terms and conditions though on reading them it is not abundantly clear and in any event it seems unfair. Banks do not pay retailers , restaurants etc ( merchants ) for some time and are not out-of-pocket until either the credit card user has paid their monthly account in full or levied an interest payment when a lesser amount is paid.
Banks should all come clean on this as customers who chose to pay more than the minimum though less than the full amount , might just as well prefer to pay only the minimum and use their money in other ways .