topic Re: closed account in Credit Cards

closed account

tricie17 — Mon, 27 May 2019 15:37:15 GMT

to my forum Ficoers: I closed my account with First Premier with a balance which was not over limit. Am I obligated to pay as if the account was still open or once an account is closed, do I just pay off to a zero balance. Closed in March, in April paid $20.00-less than $30.00 required which left balance of $383.00. Looked at transactions this morning to find that they charged $30.00 late payment and also charged a $4.20 montly fee all for May along with $43.00 for a payment. What is the rules for a closed account? The account was closed in good standing. Did not want to pay AF after year which would have been over $100.00.

Re: closed account

CreditInspired — Mon, 27 May 2019 15:57:28 GMT

@tricie17 wrote:
to my forum Ficoers: I closed my account with First Premier with a balance which was not over limit. Am I obligated to pay as if the account was still open or once an account is closed, do I just pay off to a zero balance. Closed in March, in April paid $20.00-less than $30.00 required which left balance of $383.00. Looked at transactions this morning to find that they charged $30.00 late payment and also charged a $4.20 montly fee all for May along with $43.00 for a payment. What is the rules for a closed account? The account was closed in good standing. Did not want to pay AF after year which would have been over $100.00.

Yes, you are still obligated to pay the minimum payment. Your account being closed doesnt cease your requirement to pay what’s due. And these outrageous fees assessed is an expensive lesson to learn.

If your minimum payment due was

$30, why did you only pay $20? So yes, fees—in this case completely outrageous—were appropriately assessed.

So, if you decide to pay off the outstanding balance, which you definitely should, continue to check your acct the following 2 months for any trailing interest or other fees, or you will be hit for additional fees again.

Re: closed account

Anonymous — Mon, 27 May 2019 15:57:28 GMT

You have to make the minimum payment to avoid the FEE for not making it. You will still be getting charged the monthly fee until it's paid in full. Read the T&C's that came with the card.

Re: closed account

Anonymous — Mon, 27 May 2019 16:00:58 GMT

I would pay off to a zero balance.

You are responsible for the late fee bc technically you didn’t pay the required payment due (you only made a partial payment).

As for the May fee.....I’m not sure. It could be (depending on the terms) that a fee will be charged as long as you have a balance. I would call and ask.

But for certain, I would pay this off vs making payments.

Re: closed account

tricie17 — Mon, 27 May 2019 16:20:40 GMT

Would this cause a late payment on my excellent payment record and thank you for your response.

Re: closed account

Anonymous — Mon, 27 May 2019 16:22:56 GMT

Lenders are especially likely to be strict on a closed account when you do things like not paying the minimum payment.

Look at from their point of view - you don't want their product anymore, so they have no leverage over you. You showed them that you were not going to dependably pay your bill.

Re: closed account

Anonymous — Mon, 27 May 2019 16:43:34 GMT

@tricie17 wrote:
Would this cause a late payment on my excellent payment record and thank you for your response.

Unfortunately yes. That $10 difference will end up being very costly. ☹️

Just curious, did you only make a partial payment because of finances or did you think the terms no longer applied.

Re: closed account

aircobra — Mon, 27 May 2019 17:15:41 GMT

Why would you close an account that has a balance and not pay it off right away? I am also not sure why you would think you aren't required to pay off the balance even though the account is closed. The companies would be out of business if that were the case because people would rack up high balances on their cards and just close them.

Re: closed account

tricie17 — Mon, 27 May 2019 17:33:23 GMT

Once I closed the account, I was thinking of just paying it down and never thought of the terms. I could have paid thirty dollars if being knowledgeable. I have paid over the amount due for May and will pay down to $0 by next month June. However with First Premier, one is never at a "0" balance because of fees.

Re: closed account

tricie17 — Mon, 27 May 2019 17:38:49 GMT

I think you should read my post again. I know I need to pay the balance down, I was inquiring about payments and fees. Thank you though!

Re: closed account

Anonymous — Mon, 27 May 2019 17:42:35 GMT

You definitely have to pay down closed accounts that have a balance. Man, sure would be great if you didn't have to

And to answer your question yes the late payment will impact your credit. Just don't let it happen again.

Re: closed account

Revelate — Mon, 27 May 2019 17:55:54 GMT

Well wait a second.

Late payments don't impact your credit until 30+ days; if you underpaid by $10 kick more money to it immediately: if the due date was April 30th or whatever you may have a few days to get it current without taking the 30D late notation on your credit report.

But seriously raid the cookie jar and get that account current, then pay it off with a quickness.

Re: closed account

tricie17 — Mon, 27 May 2019 20:57:26 GMT

To all who read my post: I went back into my statements for assurance and starting with my March statement $5.20 was due for April and this is why I paid $20.00 for April. April's statement shows $30.00 due for May which I have paid $60.00. The strange thing is First Premier shows on May 9th a monthly fee and a $30 late fee on May 26th which is the due date. I paid them May 24th and have my receipts. I know I have to address this with FP but. thought I would get my forum feedback.

Re: closed account

CreditInspired — Mon, 27 May 2019 21:04:17 GMT

@tricie17 wrote:
To all who read my post: I went back into my statements for assurance and starting with my March statement $5.20 was due for April and this is why I paid $20.00 for April. April's statement shows $30.00 due for May which I have paid $60.00. The strange thing is First Premier shows on May 9th a monthly fee and a $30 late fee on May 26th which is the due date. I paid them May 24th and have my receipts. I know I have to address this with FP but. thought I would get my forum feedback.

Okay, this sounds really different from the first post. So the best thing is to get on the phone first thing tomorrow morning and get this resolved. PRONTO!