swill453 wrote:Satsuma wrote:What the letter seems to be saying is those payments will simply be disregarded, and interest on the ATM withdrawals will continue to be accrued daily until the full balance (ATM cash + interest + airport snacks) is taken by DD at the end of the month.
I don't think it does say that, and as I said above I think it would be illegal for them to do that.
Repayments have to be applied against the highest interest balance. They can't simply ignore them until some future date.
(honestly not trying to be dog with a bone here...! )
But in my example, which is not atypical for my usage, I have paid off all the highest interest, yes?
So the only payment left is my airport snacks, which are [technically] interest-free anyway. And they'd be paid off asap too (before the DD is due).
So the balance is easily likely to be £0 by the time the DD date rolls round, even if I have racked up £hundreds in spending through the month.
But their own wording says: “After 21st September 2018, if you have a Direct Debit set up to make payments towards your balance and you make an additional payment before your Direct Debit is due, your Direct Debit will not be reduced....This change means that any additional payments to your account will no longer affect your direct debit payments, helping you pay off your balance more quickly.”
It's either a case that the wording is phenomenally bad; or there is a much bigger change afoot - the usage of "no longer" means they are changing from what it currently is - that an additional payment WILL affect the DD..
(It may be that yours/someone else's(?) comment about it only applying to people who have a rolling balance and only make partial payments, but if so, that's back to it being phenomenally bad wording!)
What's most frustrating is the inability of Clarity to explain this to me, and it's their new policy!