Interest Charge Explanation
The annual interest charge from 28th October 2015 is 22.9% (variable).
Interest is added to your account when a statement is produced at the annual interest rate of 22.9%, if you have not paid the full balance detailed on a statement by the due date shown. The amount of interest charged, is worked out in 2 parts:
Daily interest (based on the annual interest rate of 22.9%) is calculated on each individual item ordered (and not returned under our returns policy) starting from the day after we expected you to receive that item until the date of your next statement.*
Monthly interest is applied on the outstanding balance of your account (based on the annual interest rate of 22.9%) from the date of the statement is issued until the date the next statement is produced.
Example (Assuming the balance has not been paid in full after statement A has been issued. Part payment does not affect the amount of interest added):
1 item ordered on 1st November for £100, and due to be received on 2nd November. So the individual daily interest charge begins on 3rd November, up until 13th Novemeber (when the item appears on Statement 'A').
£100 x 0.564% (10 days @ 0.05635%/day**)=£0.564
Opening balance of statement 'B' is £100
£100 x 1.704% (30 days between 13th November and 13th December)=£1.704Part 1£0.564+Part 2£1.704Total£2.268Interest charged£2.26 (We always round down to 2 decimal places)