topic Re: Interest charge question in Credit Cards

Interest charge question

aircobra — Sun, 12 Feb 2023 18:48:49 GMT

So I had purchased a TV that I ended up returning a couple months later (through Costco who has a 90 day return policy). And I have had issues getting Capital One to remove the interest charges on the transaction. I made sure the only balance on the card was that purchase, so I know that was the only thing accruing interest. Is this normal? Am I still forced to pay the interest on something that was refunded?

Re: Interest charge question

TRC_WA — Sun, 12 Feb 2023 19:02:34 GMT

My assumption would be yes.

Costco isn't going to pay it.

Re: Interest charge question

Kforce — Sun, 12 Feb 2023 19:09:11 GMT

Yes

Re: Interest charge question

K-in-Boston — Sun, 12 Feb 2023 19:23:22 GMT

Yes, unless the merchant credit posts prior to the end of your grace period (which would have been the due date following the statement on which the original charge appeared) you would be responsible for any interest charges resulting from not paying the complete balance.

Re: Interest charge question

Brian_Earl_Spilner — Sun, 12 Feb 2023 19:35:15 GMT

The interest charge is what you're charged to borrow the bank's money. You borrowed their money for a couple of months. You're responsible for paying them for the service they offered regardless of whether you returned the TV or not. You tied up their money that could have been making money elsewhere. They have a right to be compensated for that.

Re: Interest charge question

OmarGB9 — Sun, 12 Feb 2023 21:36:50 GMT

@Brian_Earl_Spilner wrote:
The interest charge is what you're charged to borrow the bank's money. You borrowed their money for a couple of months. You're responsible for paying them for the service they offered regardless of whether you returned the TV or not. You tied up their money that could have been making money elsewhere. They have a right to be compensated for that.

Best explanation.

Re: Interest charge question

Shooting-For-800 — Mon, 13 Feb 2023 03:44:59 GMT

You borrowed money from Cap One not Costco.

Yes, you need to pay the interest.

Re: Interest charge question

Anonymous — Mon, 13 Feb 2023 12:55:49 GMT

Yes, as everyone has said, you do have to pay. One more example. A (very very) good friend asks you to lend them quite a bit of money for a deposit on a house, and they will pay you interest. You do, they put down the deposit, but four months later the deal falls through, your friend gets the deposit returned, which is then returned to you. The friend then says "Since I never got the house, I guess you will give back the four months interest and all's square, right?".....

Re: Interest charge question

SouthJamaica — Mon, 13 Feb 2023 18:04:37 GMT

@aircobra wrote:
So I had purchased a TV that I ended up returning a couple months later (through Costco who has a 90 day return policy). And I have had issues getting Capital One to remove the interest charges on the transaction. I made sure the only balance on the card was that purchase, so I know that was the only thing accruing interest. Is this normal? Am I still forced to pay the interest on something that was refunded?

Of course you're obligated to pay the interest. You borrowed the money.