I have a question for anyone that knows a lot about credit cards and their contracts?

Question

I pay my credit card every month. I've never been late with a payment and I always pay the card off in full. I recently decided to have them take my payment out of my husband's bank account online(i don't have a bank account at the moment) so I did some auto draft payment. They took the payment out but then didn't give me the credit.. So it says I have no available credit. I called the credit card company and they told me that per my contract they had a right to hold my payment for 20 days or more. When I asked why she just said because they had the right. I read in my contract where it says that but it also says if they feel threatened. If I'm making my payments ontime and I always pay off my card why would they do this???

Answer 1

Certainly depends on the precise wording of the contract, but generally a provision like that would ultimately be question of fact for a judge to decide. I know you don't want to go that far, just telling you what the legal standard would be.

My advice, call them and point out that you've been a great customer (actually, as far as they're concerned, you haven't been because they want you to run up fees and interest) and you're going to close your account if they don't make this right. Then do it.

Answer 2

I've been there and done that. The credit card company is not doing anything illegal. It's there right to hold payments under any type of new account or new method of payments. They do this for your protection as well as theirs.

When they hold the payment of new accounts/new payment methods, they are doing so until they establish a history of successful transactions for your source of payments (generally this happens with making on-line payments). The reason being is that even though you make a payment, it may take a few days or even longer (depending on company) for that amount to be verified and then posted to your account.

As for the 20 day hold, this too is legal; some companies does this and some don't. I had this same issue when I first opened my Wal-Mart Credit Card account. Until I established a history of successful payments on my account via my checking account, they held my payments. I believe after 7-10 successful transactions, they started posting my payments the day after I made them online.

Give it some time, it will get better. If you must have your credit appear immediately on your account, may your payments via regular mail and use a money order or cashiers check. Even if you send your payment in via personal check, they can still place a hold on it.

Hope this info helps...I knows it probably not what you wanted to hear, but it is what it is, and theres nothing we can really do about it.

Good luck!

Answer 3

I'm not sure I follow the question...

You made a payment from your husbands account, and even though the money is gone from there it has yet to be reflected on your credit card balance?

If that is what you are asking, they you might want to check with your credit card again. Sometimes payments, even online whisch is the quickest and most reliable, will take up to 5 buisiness days to process/reflect in your account.

If this is the case, then I'm sure the payment is going through, just not fast enough for your active spending - haha.

Also - did you know that if your payment cheque gets lost in the mail, or is delayed - it is YOUR fault and you can be charged late penalties or interest? yep. its true. This is why I now make all my payments online. It takes roughly 3-5 days for the payment to be processed on the recipient's end.

Answer 4

You will need to speak to supervisor on this- easy way to resolve it since you have a prove that they took the payment out but didn't give me the credit.

When you were making the payments they did not inform you of holding the payment for more than 20 days.

If that does not resolve it, they will report it to credit bureau, at this time all you can do is dispute it with prove of payment having been accepted by credit card company
If proven they will be obligated to remove it from your credit score within 30 day

Answer 5

Credit card companies will use any legal trick they can use to make more money from you. Since you pay off the bill every month and hopefully have a zero balance, just don't use the card any more. Credit cards are not convenient anymore, as you can see, they have all the control. so from now on pay only in cash. no one can cheat you if you pay by cash.with cash there is never any
late fee, insufficient funds fee, no bounced checks,no below minimum balance fee. with cash there is never any fees....good luck

Answer 6

NEVER give credit card or any creditor access to your (or hubby's account) EVER!!! I used to work in a bank and it only takes one computer "glitch" and your account is overdrawn - not the bank's fault - and you have to fight the creditor to get reimbursed for bounced check fees/overdrawn fees,etc.

Is licking a stamp so inconvenient that you would risk a bank nightmare!!!

Even if you try to stop the auto pay - good luck getting that thru. Honestly, they have the right to hold your pymt for 20 days and they have the right to access your account....close that card.

Answer 7

They have the right, plain and simple. It's not your account, they had to verify it was your husbands. Even if it was your account they have the right to hold it. Go to Walmart or your local grocery store ANYWHERE you need to go to find a moneygram or western union it costs less than $10 gets there in minutes and you don't have to worry about that. If you do it prior to 2 p.m. in the companies time zone it'll be available the next day.

Answer 8

I can help you with this. It's a simple problem, but many haven't realize.

- They are holding your payment for 20 days because you use your husband's bank account. It's their policy and it's completely legal for them to do that , cause they need to verify that bank account belongs to your husband, not someone's else account.