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cadman

Capital One - interest

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Hi all - I have a Walmart Mastercard that I had been carrying a large balance on (yes - I know I shouldn't carry balances - but not here to discuss that). About 30 days ago, I received notice that the account was being transferred from Synchrony Bank to Capital One bank.  Had the money and decided to pay off the balance at that time - paid "current balance" online about 4 or 5 days after statement date which was 3 weeks ago. The account just transferred about 5 days ago and now Capital One says that I owe them over $100 in interest.  When I ask them how is that possible, they read from their script about daily interest.  First, they need to have their code setup so if you click to "pay current balance", it includes the interest to that point (it is not difficult to calculate it) - so it is actually the true "current" balance.  But mostly, if I paid the balance with a different bank, a few days after statement - how can I owe almost a full month of interest to the bank it only just transferred to?  Up until today, it has shown a $0 balance.  I hung up on them the last time I called as I could barely understand the broken English and kept being told that I just did not understand the way the daily interest works and to let her explain it to me.  She would not accept that I was not asking how the interest worked.  I am an Engineer - I am pretty good at math and have a spreadsheet that shows me my interest based on daily calculations.  I should owe about 4-5 days of interest max - not until they completed their conversion to Capital One 3 weeks after I paid it.  Does anyone have any good numbers / contacts there that I could reach out to and explain this and maybe even have them waive the small amount of interest that I should actually owe?  At least 2 of the 8 cards that I paid off have automatically waived the additional interest for paying a few days after the statement dates.

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Interest posts only once a month and it's based on your average daily balance.  Since you are carrying a balance, that would include both old and new purchases.

 

If you are carrying balances and mid-cycle decide to pay "in full" you should still expect to see trailing interest post to your account after your payment.

 

Edited by cv91915

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Just to be clear, most any credit card issuer doesn't add interest into the balance you view online until it's assessed (even if you select the option to pay the current balance in full).  Just the way it is.

 

< For those here who disparage credit unions, I'll note my credit union is an exception to this ... when you say you want to pay your current balance in full and you've been revolving, it shows you the current interest accrual and asks if you want to pay that as well ;) >

 

So, as you're aware, the interest accrual calculation is (average balance outstanding x periodic rate).  Assuming a constant balance during the statement period, the average balance = outstanding balance x (# days outstanding / 30).

 

So, yeah, it's pretty straightforward to calculate (this assumes that there was no grace period in effect on the prior statement, which sounds a safe assumption in this case). 

 

I fully get your frustration in speaking with the C1 CSR.  You really wish you were face to face so that you could bitch slap them to get their attention periodically.

 

If C1 says that you owe approx $100 in accrued interest, does that mean a new statement has cut.  If so, how does their average balance during the statement period compare to your calculation?  (If not, where did they come up with an interest amount from?) 

 

If you feel well grounded in your calculations, I  can only suggest calling back and asking to speak with a supervisor.  And, if that fails to produce the desired result, then I would document what you have (including a comparison of how they calculated interest and how you did, and where there calculation is in error), and mail it off to an appropriate address that the supervisor provides.

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As others noted, this is simply trailing interest.  You can easily figure, roughly, what is going to be posted.  There are some issuers that make it difficult to make the overpayment necessary to address the sum, but it CAN generally be done. 

 

You will want to sock drawer the card for a month or so to ensure that everything does, in fact, zero out. 

 

If you absolutely HAVE to revolve a balance, then do so ONLY on a card with a low APR...there are still some out there with single-digit rates as the 'go to' APR once any sort of promo period is done and over with.   

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When the new statement cut - it showed as $0 balance.  Now a week later, it shows as about $110 balance. The interest for the previous month was $140.  How can I owe 3/4 of the months interest for 3 days is my question that I can't get answered.  That as well as why did it get added a week after the statement cut that showed I owed none...

Edited by cadman

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To be clear, are you saying that the interest posted to your online account activity, but you haven't seen a statement that actually contains the charge along with the calculation of the interest charge in the designation section at the bottom of the statement?

 

It would be most helpful if you would detail the recent transaction activity  For example:

 

8/30  Interest charge $140.53

8/30  Statement Balance $540.53

 

9/3  Payment $540.53

 

9/30 Statement Balance $0

 

10/7 Interest charge $110.65

10/7 Online balance $110.64

 

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Does the card use average daily balance for 30 days or 60 days?  A while ago, some cards did 60 day average daily balances.

 

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I think part of the problem is that I payed it prior to it transferring to Capital One and it took them a few days to get it straight.

 

On Oct 2nd - balance of $7888

Paid balance on Oct 2nd. They did not credit it until October 9th, but then back dated it to the 2nd as the day paid.

 

showed on Cap1 on Oct 10th with $0 balance

received new statement notice on Oct 12th - $0 balance

 

received new notice / statement on Oct 16th - $110 balance - interest charges

 

It is especially irritating that Cap1 is hitting me for interest charges on a card that I never owed them money on.  It was paid prior to the transfer to them - so they are collecting interest on money "borrowed" from Syncrony Bank.

 

I will just pay it / them and never charge on them again - they will auto close in a few years.  I paid off 8 cards and 1 has auto-waived the additional interest, 1 waived when I asked (Target Visa) and 3 have not (both a regular Cap1 and the Cap1 Walmart MC & BOA) - on the one that auto-waived it.  It was the highest balance I owed.  It was US Bank.  Almost $8500, and when their statement cut, they gave a CLI and show no additional interest owed.  The other 3 statements have not yet cut - should be next week on those.

 

 

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This still isn't entirely clear.  Was the last statement issued by Walmart on Oct 2, or is that a balance picked up online?

 

For perfect clarity, please detail the date of the last MONTHLY interest charge detailed on your Walmart statement (please specific the statement period noted).

 

As things stand, this does sound like "residual interest" ... I.e. interest assessed from date of your last statement to the date of your payoff (interest for a period that hadn't yet been billed and wasn't reflected in the balance you repaid).

 

I'm unable to comment as to whether the amount seems excessive, because you haven't provided your statement period information.  I'm sensitive to your claim that the interest charge amount is unreasonable for the residual period involved; however, I can't really get a handle on whether that's the case without concrete dates.

 

Also, if your received subsequent statements that detailed the added interest charge, it should provide details for how they calculated that charge.  Please excerpt those details in your reply.

Edited by hdporter

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To follow...when the term 'statement' is being referenced, is that the actual PAPER statement received in the mail, .pdf version of what would have been mailed or simply the balance line viewable online?  Yes, it DOES make a difference...

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5 hours ago, centex said:

To follow...when the term 'statement' is being referenced, is that the actual PAPER statement received in the mail, .pdf version of what would have been mailed or simply the balance line viewable online?  Yes, it DOES make a difference...

Forgive me for being a bit obtuse in reply ...

 

I've assumed that interest is charged on the date that the statement is issued, and that the paper statement will tie to the online pdf version.  Further, I presume that the online balance as of the statement date will tie to the physical statement.

 

I'm not sure what I'm missing here ...

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Seriously guys. Why do you have to put all newbies through the ringer assuming they must be idiots? This reeks of a C1 incompetent grab fest and everybody is vilifying the OP.

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10 hours ago, shifter said:

Seriously guys. Why do you have to put all newbies through the ringer assuming they must be idiots? This reeks of a C1 incompetent grab fest and everybody is vilifying the OP.

 

Looking for clarification of details has become "vilifying"???  wtf!

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13 hours ago, hdporter said:

Forgive me for being a bit obtuse in reply ...

 

I've assumed that interest is charged on the date that the statement is issued, and that the paper statement will tie to the online pdf version.  Further, I presume that the online balance as of the statement date will tie to the physical statement.

 

I'm not sure what I'm missing here ...

The reason I posted as I did was recognition that some people don't get an actual hard copy in the mail because they fall for the crappy claim that "oh, they will ALWAYS be available to you" or they take the five dollar statement credit. 

 

But the fundamental issue I was getting at was that a website that shows a zero balance is not necessarily a STATEMENT balance.  Detail matters.  And, of course, after more than 30 years in my field, I like that measure of clarity...its one of the reasons we are always trying to get as much as we can even on forty-year old misdemeanors that were long ago disposed of...details matter in background for criminal law matters just as much as they do when looking at background in a credit matter. 

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I get online / pdf statements.  And yes, I had a pdf that showed "$0" and then 2 days later, another one the showed the interest.  That was why I was so pissed about it - a statement cut and then was "replaced / updated with a new one".  It is like they are totally lost as to what they are doing at the moment due to the account transitions.

 

Well, after I paid it - now they have gone back and "credited" the interest so now I have a balance of -$110.  Assuming that they don't go back and reverse it.  So they show a transaction of adding the interest on Oct 16, paying it on October 18 and also removing it on October 18... leaving a negative balance now.  And this is without ever actually getting to discuss the actual issue with anyone.

 

And just because I haven't been active on here in a while - I have still been reading over the years - just not usually logged in when I did. I remember when this site was started and many people came from that other site - I go that far back.  So I am definitely not a newbie to credit. Like many, my credit was bad, back then, due to a Ch7 BK.  Been carrying balances due to time spent in ER and ICU and some other Dental / Medical things that happened - you know, life in general.  Recently was able to get a low rate loan to pay off cards - all but a couple of cards.  They will be paid down and off quickly and then will focus on the loans.  Plan to use cards for normally bills and pay them like I normally would directly from my checking account each month.

Edited by cadman

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Glad it worked out.

 

I think most people think of all of this processing as automatic, but in fact with billions of transactions every month and millions of statements, there is always a small percentage of transactions/accounts/statements that need to go through a manual exception process, and errors can occur.  Glad they fixed it, and you can now move on to life's higher-priority matters.

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As CV notes, mistakes happen in transitions...this is far from the most egregious I have seen or heard about.  It sounds like it has sorted itself out, but I would definitely ensure you retain copies of those statements for at least a few years (I trust online statement availability even less than some here trust third-party debt collectors)...

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