Common use of Applying interest Clause in Contracts

Applying interest. When is interest payable? We charge interest from the date an amount (e.g. a purchase or fee) is charged to your account until it is paid in full but there are three exceptions to this. We don’t charge interest on: • purchases if you always pay the full amount you owe on each statement date (as shown on your statement) by each payment due date; • late payment fees, returned payment fees or Instalment Plan fees; or • an amount that is included in an Instalment Plan, for the duration of that Instalment Plan unless the Instalment Plan ends early. Where the Instalment Plan ends early, we’ll start to charge interest on the balance you owed under that Instalment Plan from the day after your next statement. For other fees and charges, we’ll charge the same rate that applies to a particular type of transaction (see “Interest rates” above for further details). Interest will still be charged on cash withdrawals and balance transfers even if you pay the balance in full. Examples When you won't pay interest on purchases If you paid the full amount you owe in June and in July we won't charge interest on any purchase charged to your account in June or July which is shown in your July statement. When you'll pay interest on purchases If you didn't pay the full amount you owe in June, we'll charge interest on any purchase charged to your account in June and July, even if you then pay the full amount you owe in July. How we charge interest on cash advances or balance/money transfers If you ask us to make a cash advance or balance/money transfer, we'll apply interest from the date we charge it to your account and show it in your next statement. When you’ll pay interest on an Instalment Plan that ends early If an Instalment Plan ends early on 10th June, and your next statement date is 18th June, we’ll only start to charge interest on the balance you owed under that Instalment Plan from the 19th of June. How we work out interest on your account We convert the annual Simple Rate for each type of transaction into a daily rate (using the actual number of days in a year). We then: • apply this rate to the amount you owe each day for each type of transaction; and then • on each statement date, add the interest charge for each type of transaction to your account. If you don’t pay the interest due each month by the date set out in your statement, we’ll charge interest on any unpaid interest at the relevant Simple Rate set out above.