BOA random interest charge

[Anonymous]

Hi all,

My BOA starter CC has always been a pain! They made so much money on me in interest for 2 yrs until I wised up and found these forums. So now I have other, better cards, I have SDd my BOA card. I stopped using it and then they lured me back with a CLI and a 0% BT offer. I took the BT offer and have just been paying it off every mth. So I have another 6 mths at 0%.

Last mth, I forgot to update my autopay for my cell phone bill and it went on the BoA card. It was $100. I paid before the payment due date the entire $100 plus another $100 towards the remaining BT balance. To my surprise, when the statement cut, I see this random charge for $1.50. It’s labeled interest charge but it’s not the full amount of interest that would have been charged on the “purchase” (the $100 cell phone bill).

I spoke to 2 CSRs who had no clue and told me that interest will be charged on new purchases (duh). But my issue is the interest was charged on the purchase even though I paid it off before the billing cycle was up. That is the only new charge on the card. And it’s not the full interest that would have been charged (21% apr and zero rewards - another reason why this card is SD).

I know it’s only $1.50 but I’m worried that next mth, they come up with some new charge. Also, they won’t waive it. And the previous month I had a few small purchases that I paid off before the payment due date and was not charged interest.

Has anyone encountered this before? I understand being charged interest if i didnt PIF the purchase amount but in this case I did pay before the payment due date like 1 wk after the charge hit and still got charged interest. And on my statement, the section that used to list the remaining balance covered under the promotional APR now shows as $0.

I plan to HUCA until I find someone at BOA that knkws what happened. But figured I would ask here too for advice. I wish I could get rid of the card but it’s my oldest open credit card account.

Thanks in advance!

[AllZero]

I do not have an answer to your question.

Once you BT is done, I would recommend you call the CSR and product change your unknown Bank of America card to a Cash Rewards or Travel Rewards. If first CSR does not know how to do it, HUCA.

BoA does soft pull CLI.

[thornback]

Have you read the BOA Terms & Conditions for the promotional BT offer? 

I don't have a BOA account but I've used promo BTs before.

Often, BT promos cause you to lose your interest-free grace period on new purchases if you do not pay the *entire* statement balance (including the amount of the BT) by the payment due date.   Interest on new purchases will instead begin accruing from the moment it posts; so even though you paid it before the statement closed, it seems you may have been charged the amount of interest from the purchase post date.   

Also - whenever you add purchases on top of a BT,  your payment may be divied up between the BT principal min amount due and the purchase amount (your payment in previous months may have been enough to cover the BT min due, the purchases and all accrued interest which may be why you did not see interest charges once the statement cut).

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@Anonymous wrote:

And on my statement, the section that used to list the remaining balance covered under the promotional APR now shows as $0.

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And this part -- I fear you may now be locked in permanent interest charges until the entire balance is paid off because, as I mentioned above, you made new purchases and did not pay the *entire* statement balance (including the amount of the BT) by the payment due date... you may have effectively voided your 0% promo.  I could be mistaken as I'm basing this off my own experience outside of BOA,  but please read the BOA T&C. for this promo if you haven't already done so. 

Generally, it's a good idea to refrain from allowing any new purchases when you are carrying a promo BT unless you have a 0% APR on purchases promo running simultaneously because it all just becomes really convoluted... 

[lmhenry1]

Sounds like Trailing interest. Trailing Interest is the amount of interest that accrues between when a credit card bill transaction has posted , and when payment is received. Also called “residual interest,” It applies only when you carry a balance on your credit card.

[NRB525]

I think if you read through all the T&C of your card, there is a section about "minimum interest". Several banks have this. BofA is $1.50 minimum interest charge if I recall.

During the last few BT I had on BofA cards I was able to have a 0% BT, and use the card for the 3% category for regular purchases. I made a point of paying those purchases within about 2 days after they posted to the account, so my experience is there may be a short window to get the rewards and not trigger interest. 

Since you let this one sit for longer before paying, it triggered the minimum interest. 

My suggestion is to pay the $1.50 immediately.  It is now trailing minimum interest, and it is possible to get in a loop where you pay $1.50 on the payment due date, and get another $1.50 a few days later on the statement. 

[Anonymous]

Note: edited.

I misread. so your BT and phone bill are now paid off, so trailing interest as mentioned above are the right answer.

[Anonymous]

Thank you everyone! I think trailing interest is the suspect. It’s hard to find the right answers in the convoluted t&c’s I got from BoA and even my statement is confusing because in the section for interest charges, it just says zero across the board. I have a BT on my CHase card and have done the same thing where I had purchases made and PIF the purchase amount plus extra before the payment due so I was confused why I all of a sudden got a charge on BoA.

I hate that card so much and I have tried multiple times to get a PC to a cash rewards card but they always say no. It was a secure card initially and I guess that is why they won’t waive the AF or PC it. With the CLI they finally granted me, it’s my highest SL so I definitely don’t want to close it. Maybe I can keep calling until I find someone there that does let me PC after I pay off the BT.

[longtimelurker]

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@Anonymous wrote:

Note: edited.

I misread. so your BT and phone bill are now paid off, so trailing interest as mentioned above are the right answer.

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OP says another 6 months on the BT?

[NRB525]

Minimum Interest charge is what I said.

Trailing interest refers to when you pay something off, and from an otherwise zero statement balance an interest amount posts.

[Anonymous]

Ah, this is what happens when I woke up too early. Read twice and still fell short! , So BT balance is not paid off.

Terms aside (which I am not an expert and I read conflict definitions), here is the info as I understand, that may be relevant.

First, you did generate interest from your purchase, which start to accrue probably just a day or two after purchase.

When you make payment, ccc are required to put any payment in excess of minimum toward your highest interest balance. Since you made 200 payment total, the minimum would have gone towards your BT, and rest goes to your purchase. (If you already made minimum payment this billing cycle, then this 200 should go entirely towards your purchase first).

If your minimum due is 97 or less (gonna assume an interest of 30% APR), then your excess 103+ will be used to pay off the purchase+interest. It is possible to continue getting looped small interest charge in next 1 or two billing cycle (minimum or trailing or whatever), but really, it probably isn't much.

If your minimum due is over 97, then your excess payment is less than your purchase balance and there will be a remaining balance on your purchase that will generate interest.