Capitalisation on statement

[palmski]

All

 

Currently claiming back my PPI from these MUGS, but what is capitalisation the statement? Is this the interest?

[ims21]

Hi

 

I believe Capitalisation is the word Welcome use for interest.

 

Regards

 

ims

[MrZ]

Double post removed

Edited September 3, 2011 by MrZ

[MrZ]

Capitisation is generally the contractual interest applied to the loan. However Welcome statements also show capitlisation when other fees/charges are added to the account. In those cases there is generally another description of the fee or charge.

 

Example:

Letter -10.00

Capitisation -10.00

Ad Hoc Fee -5.00

Capitilisation -5.00

 

In the above example, the fee or charge is applied only once to the account as "capitilisation". If you are lucky you get a description of what the fee is (letter, telephone call, returned debit, etc). It's not uncommon however to just see "ad hoc" fees.

 

You can tell what is regular interest as its usually applied on or very close to the same day each month...usually just before your payment is due in order that Welcome can charge the maxiumum amount possible. They usually dont add the interest after a payment as this would be less interest applied, and they would be doing something that would benefit you...and as we all know, they are not having any of that!