BOA - are Late fees limited to the amount that's overdue? Got a small fee for small late.

[Mrm-na]

I have a BOA credit account which, at the time of signup, was originally a "Better Balance Rewards", but BOA later changed it into an "Unlimited Rewards" when the BBR product got discontinued. Just mentioning in case it's relevant to whatever policies BOA attached to the account.

I've been carrying a balance on that card for a while, it has my lowest APR and I've been focusing payments on higher priorities.

I was relying on autopay to cover the monthly obligation on this card, and I lapsed on checking it manually.  The autopay was set for $40, which used to be well over the minimum, but I just discovered today that the minimum has increased and my last bill was $43 - so the last autopay was $3 short.  That was 20 days ago.  I just made a manual payment ($100) and edited my autopay settings to now pay the Minimum, not a specific amount.

The current statement (from 20 days ago) shows I was charged a $3 "Late Fee for Payment Due".  This just happens to match the amount that was overdue.

Is there a rule or policy that says a late fee can't be greater than the amount that is overdue?  Or is this just a preliminary fee, and I'll be hit with a full $39 late fee next month?

From what I've read, nothing can report until 30 days, and the APR on the existing balance can't be increased until 60 days late, so I think I'm safe on those fronts.  I sure hope that's correct, a penalty APR on this balance would be very frustrating.

[FlaDude]

According to the Terms and Conditions for that card, the late fee will not exceed the minimum due, and will not be charged if the total balance is under $100. Note that you might also get your interest rate increased to the penalty APR.

[Kforce]

---

@Mrm-na wrote:

I have a BOA credit account which, at the time of signup, was originally a "Better Balance Rewards", but BOA later changed it into an "Unlimited Rewards" when the BBR product got discontinued. Just mentioning in case it's relevant to whatever policies BOA attached to the account.

I've been carrying a balance on that card for a while, it has my lowest APR and I've been focusing payments on higher priorities.

I was relying on autopay to cover the monthly obligation on this card, and I lapsed on checking it manually.  The autopay was set for $40, which used to be well over the minimum, but I just discovered today that the minimum has increased and my last bill was $43 - so the last autopay was $3 short.  That was 20 days ago.  I just made a manual payment ($100) and edited my autopay settings to now pay the Minimum, not a specific amount.

The current statement (from 20 days ago) shows I was charged a $3 "Late Fee for Payment Due".  This just happens to match the amount that was overdue.

Is there a rule or policy that says a late fee can't be greater than the amount that is overdue?  Or is this just a preliminary fee, and I'll be hit with a full $39 late fee next month?

From what I've read, nothing can report until 30 days, and the APR on the existing balance can't be increased until 60 days late, so I think I'm safe on those fronts.  I sure hope that's correct, a penalty APR on this balance would be very frustrating.

---

Keep us informed.

Curious if they apply the penalty APR or not.

Would also like to know your cards age with BoA.

Maybe you get a one time "get out of jail" with

5 years+  history or something.

Good Luck

[swankytiger]

I also thought most BBR cards got converted to Custom Cash cards.

[Mrm-na]

---

@FlaDude wrote:

According to the Terms and Conditions for that card, the late fee will not exceed the minimum due, and will not be charged if the total balance is under $100. Note that you might also get your interest rate increased to the penalty APR.

---

Thanks.  So I guess it's a policy for the particular card, and not a general rule.

I found a saved file with the terms for the BBR card back when I signed up for it and it has a similar clause.

I don't know if the terms were revised for my account when they changed it to an "Unlimited Rewards", but if so, I presume it was similar to what you found on the web site.

@swankytiger wrote:

I also thought most BBR cards got converted to Custom Cash cards.

---

Interesting.  I already had a Custom Cash alongside the BBR, so I guess when the BBR got converted they didn't want me to have 2 of the Custom Cash.

@Kforce wrote:

---

Keep us informed.

Curious if they apply the penalty APR or not.

Would also like to know your cards age with BoA.

Maybe you get a one time "get out of jail" with

5 years+  history or something.

Good Luck

---

It was opened as a BBR in 4/2017, so the account is 7 years old now.  The conversion to Unlimited Rewards was at the end of 5/2023.

If they do jack my APR on future purchases, I'll bury it deeper in the sock drawer.   I'll post back with whatever happens.

[unsungivy]

---

@Mrm-na wrote:

---

@FlaDude wrote:

According to the Terms and Conditions for that card, the late fee will not exceed the minimum due, and will not be charged if the total balance is under $100. Note that you might also get your interest rate increased to the penalty APR.

---

Thanks.  So I guess it's a policy for the particular card, and not a general rule.

I found a saved file with the terms for the BBR card back when I signed up for it and it has a similar clause.

I don't know if the terms were revised for my account when they changed it to an "Unlimited Rewards", but if so, I presume it was similar to what you found on the web site.

@swankytiger wrote:

I also thought most BBR cards got converted to Custom Cash cards.

---

Interesting.  I already had a Custom Cash alongside the BBR, so I guess when the BBR got converted they didn't want me to have 2 of the Custom Cash.

@Kforce wrote:

---

Keep us informed.

Curious if they apply the penalty APR or not.

Would also like to know your cards age with BoA.

Maybe you get a one time "get out of jail" with

5 years+  history or something.

Good Luck

---

It was opened as a BBR in 4/2017, so the account is 7 years old now.  The conversion to Unlimited Rewards was at the end of 5/2023.

If they do jack my APR on future purchases, I'll bury it deeper in the sock drawer.   I'll post back with whatever happens.

---

I'd try calling them and explain that your autopay used to be over the minimum (which is why you didn't have it set to JUST minimum, since you were choosing to give them MORE money), and you didn't notice the change, but you're on top of it now etc., and see if they can waive the late fee/penalty APR. If you've been good and something weird happened, banks can sometimes ACTUALLY be nice... CSRs have a certain amount of discretion.