Balance Transfer - Credit Card

So I have taken a balanace transfer of of say 10,000. It is suppose to be 12 month interest free.

Though I am being asked to put inaminimum payment of $420 next month oran interest will be charged. Why is this the case?

So is it actually interest free for

  1. 10k for 1 month
  2. 9.5k for 2 month
  3. 9k for 3 month
  4. 8.5k for 4 month
  5. 8k for 5 month
    12 - 5k for 12 month

Then how is it 12 month interest free?

I do not know if you have made any additional purchases on your card. If you have got additional purchases, then that does incur interest charges, but there should be no interest charges to your original transfer amount in that first 12 months.

It would be best that you contact the bank if you are seeking clarification.

I did contact (6 multiple messages) and they said they didnit have time to respond for 20 days. Yesterday tgey have said that I have to pay 420.

I have not had any other purchases. The app is also reporting that I must pay 420.
Thus the design of the app is also against the process that you have stated.

The response states

'As indicated on your Statement, even though there is no Interest on your Balance Transfer for the first 12 months, this does not mean that you don’t have to make monthly payments.

The minimum monthly payment is still required. ’

This is clearly like the 1930s where the money lord would give you a loan but ask you to give back the interest and principal at the start.
So effectively only giving you half of the money???

If the above is true which I have got as a message this is clearly against Advertising standards of NZ. i am not sure about RBNZ guideliness here but primarily should be against…

Hi @abhina, it sounds like $420 the minimum payment due on the card. Balance transfers are still subject to card terms and conditions. This means you’ll need to make monthly repayments, and you need to ensure you operate your card in accordance with your card terms and conditions, including making the required minimum monthly repayment and making payments on time. You can find the credit card terms and conditions here:

Happy to look into this further for you to confirm this is the case, though. If you’d like me to, please send me a private message with your access number.

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As stepwise explained this seems more like a person who knew some maths, a bit of contract law and backing of a giant bank - trying to enforce their own principles.

This is against law. A customer is actually paying interest by making those payments.

I will file a complaint with commerce commission and advertising council.