Originally Posted by
vatsan
A little off topic here, are any of you guys noticing random interest charges on your cards?
I have been using PM for a few years now and I always pay the entire statement due.
Month before last, the due was around a lakh and I had made a payment of 85,000 before the due date and 15,000 four days after the due date, clearing off the entire due. They charged a hefty interest of 6692.41+ST for a four day delayed payment. Called them and after asking for an explanation of this charge, they reversed the charge.
Last month, paid a little more than the due amount, cleared on the due date but still I see an interest charge of 1887.66+ST. Just called their customer care. They didn't have an explanation but promised to send me a courier with the 'detailed workings' and would again process a reversal.
if you don't pay off the complete balance before your due date then interest is charged on the full amount you charged, not just the unpaid balance....
for example, let suppose your card rolls over on the 15th of every month & your due date is the 30th of each month....you charge inr 1 lakh till the 15th....from the 15th - 30th you charge another inr 1 lakh (that would be due the next month)....on the 30th you pay off inr 90k out of the inr 1 lakh that is due....from that day onwards you will be charged daily interest not only on the remaining inr 10k balance but on the full inr 2 lakhs you have utilised on your card....