Discovery Bank has been charging some clients interest on their credit cards despite offering interest-free transactions and deducting the full outstanding balance on the cards via debit order.
One client approached MyBroadband after months of having to complain about the interest charged on his account.
According to the client, they have to complain and follow up every month to get the interest reversed.
“The cycle goes: I complain, I follow up, I wait, it gets reversed, and then rinse and repeat next month,” the client said.
Discovery Bank confirmed the problem to MyBroadband and said it is working towards a permanent solution.
“We have identified four clients whose accounts are incorrectly charged with interest due to a mismatch in the posting date of transactions,” the company stated.
“There is usually a delay between when a transaction occurs and the date it is posted — this is standard industry practice due to the timing of settlements,” Discovery Bank explained.
“With these four clients, the delay in posting date is more than 30 days resulting in the client losing their ‘interest-free status’.”
“The accounts of these clients are being monitored and the bank is reversing the interest charge as we mobilise a permanent solution. We are mindful of the inconvenience this has caused and have kept an open line of communication with all four clients.”
The client disputed Discovery Bank’s claim that it has kept an open line of communication, saying that he has not heard one word from them.
He confirmed that the interest on his Discovery Bank credit card for the previous month had been reversed.