[fran]

Maybe best to check how the interest is calculated on your credit card. A recent survey by Choice names American Express, Bankwest, Commonwealth Bank, ANZ and Westpac as the most unfair credit card providers.
http://www.theage.com.au/business/unfair-credit-card-companies-named-20100124-mslh.html

Here's an example of how interest is unfairly charged "..if a customer were to underpay a $2000 bill by just $10, the extra interest would still be charged on the whole $2000."

[flighty]

Here's an example of how interest is unfairly charged "..if a customer were to underpay a $2000 bill by just $10, the extra interest would still be charged on the whole $2000."

That's disgusting. :mad:

I see they also list the fairer providers as Bendigo Bank, Heritage Building Society, Teachers Credit Union.

I've never heard of any of these, so I suppose they're all small players. The unfair ones seem to be the big players!

[Martha]

Yes, my credit card is religiously paid off before the due date as I want to avoid the bill. I was charged once under the 45 day free period by a major bank and I queried the charge. They work out the timing based on when I joined???? I can't trust them.

But thanks for the tip on Bendigo Bank. They have community owned small banks in cities and rural areas alike. When the big banks deserted us they came up with that as a solution. If a town wants it badly enough, Bendigo will back them to create their own community bank.

[kelly]

"Fairer credit card providers, such as Bendigo Bank, Heritage Building Society, Teachers Credit Union and some GE cards, only charged interest on the shortfall." It definitely pays to read the small print. I'm shocked at how greedy the big banks are.

[twish]

If you are in doubt, ask them how they calculate interest charges. There is a standard calculation but better ask them how they do it. Then if you have time calculate for yourself to double check.

I had the same issue with American Express and if you did complain with proof (your own calculation) then they can refund you as they are too scared for it to reach the ombudsman.

[jimjams]

What sort of powers does the ombudsman have? Couldn't they stop this practice? It seems rediculous that if you pay back $1990 out of $2000 you'll still be charged interest on $2000.

[scotty]

I have one credit card that pays off the transactions where there is no interest first followed by the lowest rate and so on up to the highest rate. It means that if you don't pay the full amount, interest charges keep accruing until you are in 'credit'. I always pay it off but got caught out once and had interest (small amounts) for months till I realised that I has to put the account into credit to stop it.