11-17-2010 05:46 PM
Last month I received a balance transfer check offer for 0% interest until Sept '11 from my Citi MC so I decided to take advantage of it and pay off my Macy's. I get my bill from Macy's today and I'm being charged interest when it was paid in full!! I called cs and was told it was the interest from the statement date to the date it was paid off. I asked why the interest, I paid it in full. She said because I was a payment customer, not a PIF, I was being charged the last months interest. She also stated this went into effect last month and Macy's was trying to get customers to PIF to avoid being charged the last months interest. I am furious! I'll never pay another penny in interest to Macy's again!
11-17-2010 07:58 PM
This doesn't seem out of the ordinary to me.
If you had paid the prior month balance in-full, then made new charges and paid current month in full there would be no interest. But if you did NOT pay the prior month in-full, and paid in-full current month, you still owe interest on the prior month balance.
Seems right to me. Guys, correct me if I'm wrong.
11-17-2010 08:40 PM
I paid previous balance and all charges for the month on 11/02. And I made no charges until after my next billing date on 11/08. I also did a BT on my Orchard to Citi and was not charged any interest.
11-18-2010 03:59 AM
A couple of things to consider:
First, many, but not all, cards offer a "grace period", if your balance on your last staement was zero and you PIF before the end of the grace period no interest is owed. But if you owed a balance on the previous statement, you owe at least the interest on the prior month's balance.
There was also something called something like average balance or something like that, that allowed them to charge effectively an extra month's interest. That was outlawed by the Dodd-Franks act I believe.
11-18-2010 06:12 AM
I understand what you all are saying. Where I'm still a little unclear is why Macy's is charging me one last months interest and Orchard didn't. And the Macy's cs rep stated this was something that went into efffect last month.
11-18-2010 06:21 AM
If you look in the CC agreement and often on your statement, you'll see that they can charge interest using a couple of different methods (e.g. avg. daily balance) and I believe they get to choose. Some of my CCs will remain at $0 after PIF when I had carried a balance and others will charge interest.
11-18-2010 06:31 AM
I got out my statement and read the very fine print on the back. And it's all clear to me now. I was under the impression I still had a grace period if the balance was PIF.
11-18-2010 08:58 AM
At least you've gotten your balance away from them and their crazy rates!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.