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Credit Card Swindle....!!....OT..

GemineyeGemineye Posts: 5,374 ✭
in Precious Metals
Ok...I know this is off the topic of PM...so any way here is what's going on
...I get my Credit Card statement...it says I owe them a finance charge..???What..???
OK let me back up...05/06/08..statement...CC says I owe..approx...New Balance $ 1982....ok I send $ 500 leave a balance of $ 1482
......................06/04/08..statement ..CC says I owe $ 2,038 ok I charged stuff and they added Interest of $14.76...Now I pay $1050.
Next statement 07/07/08...New balance says I owe $1791 with finance charges of which is $15....I hope your following....!!!!!
NOW....On 7/19/08 I send them the entire balance of $1791...!!!....
In 8/08..I get a new bill with tacked on finance charges along wth my purchases...?!?!?
Should I get a finance charge for the last statement ???My bill is paid in full...!!AmI being charded Double finance !!!


......Larry........image

Comments

  • trozautrozau Posts: 3,455 ✭✭✭
    That is SOP (Standard Operating Procedure). Eventhough you paid the rest of the balance in full, the balance of the money you owed accrues finance charge from the last time the statement was printed until your payment is received. Always expect a residual finance charge on the next bill after you pay in full the rest of the balance. The sure fire way to avoid finance charges is to pay in full everytime.
    trozau (troy ounce gold)
  • GemineyeGemineye Posts: 5,374 ✭


    << <i>That is SOP (Standard Operating Procedure). Eventhough you paid the rest of the balance in full, the balance of the money you owed accrues finance charge from the last time the statement was printed until your payment is received >>


    I was on the phone for about 20 minutes...not rudely mind you .. for trying to understand this ..Standard operating procedure..!!
    If I understand it correctly ..even though I send the full amount they require before they get the check I'm still being charged a finance charge even though I paid a finance charge already .??
    What I don't understand also previously with no outstanding balances foreward there was no finance charges..!!
    The time you leave a balance it's double finance charges of what I see...image

    ......Larry........image
  • LALASD4LALASD4 Posts: 3,602 ✭✭✭
    Some cards charge interest on a 2 month billing cycle. You have to not owe any money for 2 month to have no finance charges.
    Coin Collector, Chicken Owner, Licensed Tax Preparer & Insurance Broker/Agent.
    San Diego, CA


    image
  • GemineyeGemineye Posts: 5,374 ✭


    << <i>Some cards charge interest on a 2 month billing cycle. You have to not owe any money for 2 month to have no finance charges. >>


    I believe that's what I am seeing...I have reported this to some agency and I am waiting for paper work to arrive.I feel this is not fair in the credit industry.If money is repaid why is subjected again to double finance billing.???The CC companies are doing this and geting away with it....image
    ......Larry........image
  • 500Bay500Bay Posts: 1,106 ✭✭✭
    Usually once you pay the balance off, you are charged interest as others had written. If you pay off that final interest charge on time, they end the cycle there.
    Finem Respice
  • DeadhorseDeadhorse Posts: 3,720 ✭
    What card is this?

    Never run into this and don't want to. Who do I need to avoid in the future?

    I've never been charged a finance charge for the time between the statement date and my on time paymet, and yes, I have left balances on occasion before paying in full the following month.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • cinman14cinman14 Posts: 2,489 ✭
    Life is choice driven.. If you don't like the way they do business cancel the card.

    Is it fair they play like this? image

    But you have a choice. Teach them a lesson and cancel the card.... Oh wait a minute
    they do have you by the kahoonies.. If you cancel the card your FICO score will drop...image

    Your screwed.....image
  • GemineyeGemineye Posts: 5,374 ✭


    << <i>Some cards charge interest on a 2 month billing cycle. You have to not owe any money for 2 month to have no finance charges. >>




    << <i>What card is this? >>



    This is .....First Nat Bank of Omaha..Most of the times the balance is paid but sometimes you just look at the total and really don't scrutinize the bill to see what they are actually charging you and for how long...!!!That's why I'm ticked...image
    ......Larry........image
  • trozautrozau Posts: 3,455 ✭✭✭
    For all my credit cards, I have made it a practice to pay in full every billing cycle. CC is just a convenience for me to delay/group expense payments. I do not charge anything I do not have the money to pay in full for.
    trozau (troy ounce gold)
  • BobGreeneBobGreene Posts: 952 ✭
    Finance charges for most credit cards accrue on a daily basis. If your billing cycle ends on, say July 31st, and they don't receive the balance until August 20th, you are still charged for 20 days interest on the outstanding balance. There is nothing wrong with this practice. If they didn't charge you that interest they would be loaning you money for free for 20 days, which is not a very sound business practice.

    Bob
  • GemineyeGemineye Posts: 5,374 ✭
    True ..the finance charge only occurs when there is an outstading ballance from a previous bill.To be clear...when I charge merchandise on the card and pay the bill and the payment is received before the due date ..there is NO finance charge.I can go for months using the card and pay NO finance charge.
    It is when there is a balance foreward therin is the problem of double finance charges...!!!
    ......Larry........image
  • SmittysSmittys Posts: 9,876 ✭✭✭✭✭


    << <i>Finance charges for most credit cards accrue on a daily basis. If your billing cycle ends on, say July 31st, and they don't receive the balance until August 20th, you are still charged for 20 days interest on the outstanding balance. There is nothing wrong with this practice. If they didn't charge you that interest they would be loaning you money for free for 20 days, which is not a very sound business practice. >>



    Very well said and why you pay of CC each month in Full
    https://www.ebay.com/str/christyscoins
  • RBinTexRBinTex Posts: 4,328 ✭
    "...Always expect a residual finance charge on the next bill after you pay in full the rest of the balance. The sure fire way to avoid finance charges is to pay in full everytime."


    imageimageimage
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>"...Always expect a residual finance charge on the next bill after you pay in full the rest of the balance. The sure fire way to avoid finance charges is to pay in full everytime."


    imageimageimage >>



    That's great advice, OTOH, not everyone is in the same boat.

    I'm willing to bet you are paid every two weeks or twice a month.

    Some of us in certain fields don't get paid save for once a quarter, as in 4 tmes a year. A lot that wasn't planned can happen in 90 days.

    We are handsomely paid and because of that, I can accept a small finance chagrge once in a while. Most of my cards are in the 12% or less range, that comes from a high credit score. BTW, if you pay them off all the time, on time, you are actually hurting your credit score. They like to make a little money once in a while from the users beyond the vendors.

    They have some screwy rules, such as never leave a balance of over 38% on any card for even one period. Keep it at or below that for 18 months and your score will shoot up quickly if you need to improve it. No penalty at all for any balance left for any amouint of time as long as it is not over 38% of the credit available on the card.

    Dropping a card won't always affect your score either, depends on how many cards you have. The more you carry, the better they look at you. Besides, you can always replace a dropped card in a matter of days.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • fishcookerfishcooker Posts: 3,446 ✭✭

    One can pay more than the full balance. Savings pays no interest, so I pay extra to the card all the time. Before a vacation, before a dental crown, before a holiday trip. There is less or no balance to pay interest on in the next month.
  • GemineyeGemineye Posts: 5,374 ✭


    << <i>Dropping a card won't always affect your score either, depends on how many cards you have. The more you carry, the better they look at you. Besides, you can always replace a dropped card in a matter of days. >>


    I very rarely drop my card...I am very carefull....image
    ......Larry........image
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