Reply
Established Contributor
Posts: 723
Registered: ‎04-20-2012
0

Re: Residual Interest


ryanbush wrote:

linux007969 wrote:

What kind of crap is this? If you pay off your card to zero and dont charge anymore they can't all of a sudden charge you interest and then shutdown your account, there's gotta be more to your post cuz that's just illegal otherwise.


if you have been carrying a balance, even though you payoff your statement balance you are going to owe them for the interest you accrued between the statement you paid off and you're next statement.  it's call residual interest


If you pay it off they shouldn't be able to get away with this, and then if they do what happens the following cycle, i mean are they allowed to charge you interest on the interest? I would fight this all the way to the executive office and blast their facebook till they fix it and remove the illegal charge in my opinion.

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K (CLOSED) | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $13K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom $4.5K | CapOne Spark BIZ Cash Select Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k |
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Residual Interest

They are allowed to charge u interests, late fees and all kinds of dumb fees on interests. Works this way for every bank loan.

Makes no sense, but this is how banks work to screw people over.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Established Contributor
Posts: 723
Registered: ‎04-20-2012
0

Re: Residual Interest


enharu wrote:
They are allowed to charge u interests, late fees and all kinds of dumb fees on interests. Works this way for every bank loan.

Makes no sense, but this is how banks work to screw people over.

I know they can charge you interest but what they can't do it charge you after you paid in full and stopped using your card for a few days or more.

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K (CLOSED) | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $13K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom $4.5K | CapOne Spark BIZ Cash Select Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k |
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Residual Interest

What they charged him for right now, is interests for the time period between his statement date, and the time he paid.

Technically it's like u been carrying a balance from the money borrowed that due in 30 days but u paid on the 29th day. Technically u owe interests on those 29 days.

If it were your friend who loaned u the money, Common human decency would tell him not to charge u interests for those 29 days. But banks aren't exactly your BFF so they charge u interests.

I got screwed the same way by Macy's, though its not as extreme as op.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Established Contributor
Posts: 723
Registered: ‎04-20-2012
0

Re: Residual Interest


enharu wrote:
What they charged him for right now, is interests for the time period between his statement date, and the time he paid.

Technically it's like u been carrying a balance from the money borrowed that due in 30 days but u paid on the 29th day. Technically u owe interests on those 29 days.

If it were your friend who loaned u the money, Common human decency would tell him not to charge u interests for those 29 days. But banks aren't exactly your BFF so they charge u interests.

I got screwed the same way by Macy's, though its not as extreme as op.

Ok I think i get it, but ya they should have no reason to close the account just cuz ya owe them another interest charge, i mean if you owe them money and intend to pay by the due date they shouldnt shut you down like that or did op not pay by the due date?

Discover IT TU Score: 739 as of 4/20/14 | TU Score as of 1/5/14 - 710 | EQ Score as of 1/5/14 - 748 | Ex Score as of 1/5/14 - 728

Capital One QuickSilver MC $4.5K | Amazon $1.8K (CLOSED) | Walmart $5K | Paypal SC w/Debit card $5K (CLOSED) | BOA 123 Cash Rewards Sig $5K | BOA BBR $1K | Discover IT $13K | AMEX Sr Green Charge (NPSL) | PNC CashBuilder $1.5K | Paypal Extras MC $6k | PNC Auto Loan $20,038.75 | AMEX SimplyCash Biz CC $3k | BOA Cash Rewards Biz CC $3.5K | Chase Freedom $4.5K | CapOne Spark BIZ Cash Select Visa Sig $5k | AMEX SimplyCash Biz CC $10k (LLC) | AMEX Everyday $2k |
Super Contributor
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Residual Interest

He probably wasn't expecting anymore charges from boa, didn't get any statements or disregarded them since he was expecting a zero balance. However, it was not at zero balance, so he had to make at least minimum payment which he didn't. Eventually it became 30, then 60, then 90 day late and went into collections as it remains unpaid. There's probably a crapload of late fees, interest fee on that interests he owed, ca fees and all that crap that got bundled into the total sum CAs are trying to collect from him now. It's ugly, but hopefully BofA is going to be accommodating to him since he's been a customer for 2 years. He even had the signature visa too.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
Senior Contributor
Posts: 6,276
Registered: ‎08-16-2012
0

Re: Residual Interest

Isn't there a 25-30 day grace period in which no interest charge? "Float" if you will?

Check your cardmember agreement op!!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Residual Interest

As others have said, this is almost universal on bank loans, and, contrary to opinions here, really makes sense.

 

This is the hidden danger of carrying a balance (or cash advance for that matter).   What you need to understand is that the statement is merely a snapshot of what you owe at that moment.  If you are just making purchases, and PIF before the due date, it is also a complete statement of what you owe, because of the grace periods.  But in any other circumstances, it isn't!

 

 

Valued Contributor
Posts: 1,292
Registered: ‎08-19-2012
0

Re: Residual Interest

[ Edited ]

youngandcreditwrthy wrote:
Isn't there a 25-30 day grace period in which no interest charge? "Float" if you will?

Check your cardmember agreement op!!

NO, if you don't pay your balance in FULL the grace period goes away.  the OP stated he had been carrying a balance.

 

For example if you had been carrying a balance for say 6 months,  you're statement cuts on the 15th and you PIF on the 25th.  You still owe them for the interest on your balance between the 15th and the 25th.  that interest charge will be on your next statement

Chase Sapphire Perferred | Chase Freedom | AMEX Platinum | AMEX Delta Platinum | AMEX SPG | Capital One Venture | Capital One Quicksliver | Discover IT | ABFCU Visa | Citi AA WEMC
Established Contributor
Posts: 779
Registered: ‎10-15-2012
0

Re: Residual Interest


ryanbush wrote:

youngandcreditwrthy wrote:
Isn't there a 25-30 day grace period in which no interest charge? "Float" if you will?

Check your cardmember agreement op!!

NO, if you don't pay your balance in FULL the grace period goes away.  the OP stated he had been carrying a balance.

 

For example if you had been carrying a balance for say 6 months,  you're statement cuts on the 15th and you PIF on the 25th.  You still owe them for the interest on your balance between the 15th and the 25th.  that interest charge will be on your next statement


Why wouldn't the charge for that interest show up in the "Current Balance" Line? Do they not formally charge it until the next statement cuts?

 

I'm glad I'm learning about this. I'll be sure to check my accounts even after I PIF.


Starting Score: 515
Current Score: EQ08 698 EX04 710 TU08 727
Goal Score: 700+

Amex BCP $12300 | Discover IT $10250 | PSECU $10000 | Barclay Ring $6500 | Citi DC $6100 | PayPal Extras MC $5045 | DCU $5000 | Chase Freedom $4000 | Barclays Aviator $2400 | Cap 1 Platinum $1700 | Union Plus $1000 | Target $200
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.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

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.