the way the account is presented on the KBC app is confusing (to me at any rate). It's hard to tell what
On my AIB account, say I have a balance of €1,000 and I pay €980...
As I have not cleared my account in full, I lose the interest-free period and pay interest on the full €1,000 and not just on the €20.
What happens with KBC?
Assuming there are no non-Euro fees, if you have a balance of €1,000 and pay €980, do you get charged on the €1,000 or the €20?
Now let's assume you have a balance of €1,000 and later incur €10 in non-euro fees. You pay the €1,000, what happens?
This is the problem scenario. You payoff the €10 fee then €990 of the balance, leaving you with €10 of the balance unpaid, which interest is charged on. Not what I'd expect. Arguably this even calls their quoted APR into question.
The fees appear on the statement as Non-Euro Transaction Fee. I assume this is the 2% Currency Conversion Fee quoted in the fee booklet.
Hi Brendan, thanks, I know this sounds unbelievable. I understand how banks normally charge interest.
I'm probably wrong that I was only charged interest on the fees rather than the whole amount
Statement Due Old Bal Paid Credits Spent Interest Fees New Bal
12-Jun 7 Jul 0 0 6.31 726.85 0 4.42 724.96
12 Jul 6 Aug 724.96 724.96 5.91 862.07 0 0.18 856.34
12 Aug 6 Sep 856.34 856.34 11.5 1884.77 6.14 16.4 1895.81
Payments received will be applied to the account in the following order:
• fees, the oldest first
• Interest in relation to cash advances, purchases and then balance transfers
• cash advances from previous statements
• purchases from previous statements
• balance transfer amounts from previous statements
• cash advances on the current statement
• purchases on the current statement
• balance transfers on the current statement
Payments received will be deducted from the opening balances on the Account in the following order based on the portion of the balance representing:
• interest;
• fees from previous Statement;
• cash advances (including cash from a Cash Machine) from previous Statements;
• purchases from previous Statements.
The remainder (if any) will be applied to Transactions on the current Statement in the following order:
• fees;
• cash advances;
• purchases and Balance Transfers; and,
• any other promotional offers
That shouldn't matter, because the following statement exists in KBC fees document:Note the distinction between "previous" and "current" statements.
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