I know someone who owed for example $1,200 and paid before due date and next month received another statement with finance charges on it. Is this legal for a credit card company to do this?
2006-09-26 05:09:00 · 4 answers · asked by kriend 7 in Business & Finance ➔ Credit
Sure, it's legal... and it's in the fine print. It all has to do with the time it took for your payment to reach them... you paid the finance charge because of the time you held "their" money.
2006-09-26 09:25:00 · answer #1 · answered by Mike S 7 · 0⤊ 0⤋
Your friend should read the fine print before applying for a credit card. One of the rules on the credit card must of stated that there is a finance charge for the days that the balance was not paid prior to paying. This means, if the credit card statement ended on the 10th and the due date is the 25th, your friend did not pay the balance until the 20th. He is entitled to finance charges between the 10th to the 20th. Most credit cards and auto loans have that rule in their agreement. This is legal.
2006-09-26 15:43:01 · answer #2 · answered by Mrs Apple 6 · 0⤊ 0⤋
Neither of us know what the small print says on your friends Capital One card, nor the circumstances that added the finance charge. Advise him to call and ask. I had mail delayed once and one of the cards put on a finance charge. I called, and convinced them to reverse it. Of course it was a choice of that, or canceling the card, and they chose to go ahead and reverse the interest.
2006-09-26 12:13:33 · answer #3 · answered by oklatom 7 · 0⤊ 0⤋
Yeah because the consumer probably had accrued interest from the prior closing period. So even though they paid their bill before the due date, a portion of it was likely from a period when they didn't pay the full amount.
2006-09-26 12:12:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋