Jump to content

Credit card mathematics


Tipex
 Share

Recommended Posts

Ok, need some advice here as maths involving apr's and stuff isn't my strong point.

I've finally received the cheque from the insurers for the payout on the Subaru, and now they want me to submit my claim for the other losses which are basically the interest payments on the credit card I used to purchase a replacement vehicle while I was waiting for the money to fix the subaru.

What they have said, is that they will cover the interest if the car was the only balance on the card, and that if there was a previous balance they wouldn't.

This doesn't seem fair to me, and i'm sure it's possible to work out exactly how much interest i've paid on the money borrowed to fund the replacement vehicle, so if I work it out, and send it to them, they can't really argue.

The card had a previous balance of £525 when I purchases the car for £3000.

Is it fair to say that all payments I made over subsequent months would have come off my original £525 balance, leaving the full £3000 for the duration of around 7 months until they finally sent the cheque that I was promised 'within a week'?

I think (off the top of my head, I don't have paperwork with me) that the card (Barclaycard) charges 10% APR on purchases, so how do I work out what they owe me in the interest i've been charged while I waited for the cheque?

Is it worth calling Barclaycard? Do they work out things like that for you?

I've not purchased anything else on the card since the car, so that shouldn't complicate things.

Edited by Tipex
Link to comment
Share on other sites

I think Barclaycard does charge a lot more than 10%.

To be honest, they should be able to break down all charges by transaction as part of the credit agreement - so give them a bell.

Something with their details on will carry a lot of weight with the insurance firm....

Link to comment
Share on other sites

Cheers, I'll give them a ring later.

To be honest, I wouldn't have bothered* if it wasn't for the fact Aviva have been nothing but awkward and deliberately delaying the payment, so sod them, they can pay for making me wait.

*the agreed payment in lieu was significantly larger than I was expecting the assessor to agree to.

Link to comment
Share on other sites

Well Barclaycard weren't much help, apparently they can't send me breakdown of the interest on an individual purchase, and instead are sending me a letter detailing how they calculate interest.

He said divide the APR into 12 months which gives 0.875, and that's how much interest you pay on the £3023.75 purchase every month, then just add it up from August.

Does that sound right? They wont send me any letters confirming it.

Link to comment
Share on other sites

Does that sound right?

That's spot on - the only month that will be different is the first month as you should only pay interest from when that charge hit the account i.e. if it hit the account on day 10 of 30, then you will only pay 20 days interest in the initial month. You can work the interest out to a daily amount, work out how many days it was on the account for and multiply it up. +++

Link to comment
Share on other sites

Please sign in to comment

You will be able to leave a comment after signing in



Sign In Now
 Share

×
×
  • Create New...