Unjustified Credit Card Late fees
Author: Ashley
Posted: Wed Jul 14, 2004 9:37 pm
Post subject: Unjustified Credit Card Late fees
11/7/2001 7:35 pm CDT
My soon to be husband has a credit card debt because he thought he had paid his card off but still had eleven dollars left to pay but never received a statement, and they never contacted until 6 months later and said the late fees have added up one thousand dollars. He works during the week and can't talk to the people when they call his work. I would like to help him resolve this but need to reach the credit card people but don't know how. I know the credit card was an associates Visa, but thats it. CAn you help me track them down? thanks!!
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Author: Mom
Posted: Wed Jul 14, 2004 9:37 pm
Post subject: Unjustified Credit Card Late fees
11/7/2001 8:29 pm CDT
Here is their customer service number:
1-800-533-5600
I am just curious are you sure he only owed 11.00, even with late fees I don't see that adding up to 1K in 6 months?? Something doesn't add up here??
Author: Ira Stoller
Posted: Wed Jul 14, 2004 9:39 pm
Post subject: Unjustified Credit Card Late fees
Date: 11/7/2001 9:55 pm CDT
Who told you/him that the $11.00 ballooned to $1,000.00? If we assume a high apr of, say, 22% and a late fee of $25.00 per month, the $11.00 wouldn't even reach $200.00. Also, how did the bank contact your fiance? Doesn't he have the statement they sent him? There would be an account number and an 800 number for customer service listed therein. Check it out. I feel that there's more to this story.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Doug
Posted: Wed Jul 14, 2004 10:00 pm
Post subject: Unjustified Credit Card Late fees
11/9/2001 3:20 pm CDT
Ira, the industry standard is $29 for late fees. And Citibank for example is going to raise theirs to $35. Probably one of the reasons they changed their bill mailing address to New Jersey. More favorable laws for the lender.
So $29 x 6 months = $174 in late fees alone. Depending upon the interest rate which the credit card company could assess, at their discretion BTW, the buildup could be quite substantial because of the compounding interest on the late fees.
Was,in fact, the credit card company damaged $174 for the $11 dollar loan? Of course not, it is a license to steal!
The Federal Government should pass a law limiting credit card late fees to "actual" damages. The credit card companies are currently assessing a "punitive" damage for what is nothing more than greedy price gouging practice.
The credit card company was out no more than a few dollars interest at most by the $11 non-payment. But they are greedy and immoral - they have to pay for those big executive bonuses someway don't they? Unfortunately, the small people are getting hurt in the process. There must be a change.
Write your Congressmen and Senators to change this practice.
Author: Ira Stoller
Posted: Wed Jul 14, 2004 10:01 pm
Post subject: Unjustified Credit Card Late fees
11/9/2001 8:57 pm CDT
OK, I redid my spreadsheet numbers using a monthly late fee of $35.00 and a 25% APR. Compounding the finance charges and late fees over six months, I still come up with just under $235.00. Yes it's high for an $11.00 debt, but it's far from $1,100.00. All I'm saying is that either we don't have the full story or the $1,100.00 figure is a gross exaggeration.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Doug
Posted: Wed Jul 14, 2004 10:01 pm
Post subject: Unjustified Credit Card Late fees
11/10/2001 9:04 pm CDT
Ira, you are assuming a 25% APR. What is to keep the credit card company from charging 50%? Even your credit card?
To me, even that the credit card company is charging more than $15 total is outrageous. They are stealing. They are greedy.
The Federal Government should limit credit card company to assess "actual damages",only, in the case of late fees.
Posted: Wed Jul 14, 2004 9:37 pm
Post subject: Unjustified Credit Card Late fees
11/7/2001 7:35 pm CDT
My soon to be husband has a credit card debt because he thought he had paid his card off but still had eleven dollars left to pay but never received a statement, and they never contacted until 6 months later and said the late fees have added up one thousand dollars. He works during the week and can't talk to the people when they call his work. I would like to help him resolve this but need to reach the credit card people but don't know how. I know the credit card was an associates Visa, but thats it. CAn you help me track them down? thanks!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Mom
Posted: Wed Jul 14, 2004 9:37 pm
Post subject: Unjustified Credit Card Late fees
11/7/2001 8:29 pm CDT
Here is their customer service number:
1-800-533-5600
I am just curious are you sure he only owed 11.00, even with late fees I don't see that adding up to 1K in 6 months?? Something doesn't add up here??
Author: Ira Stoller
Posted: Wed Jul 14, 2004 9:39 pm
Post subject: Unjustified Credit Card Late fees
Date: 11/7/2001 9:55 pm CDT
Who told you/him that the $11.00 ballooned to $1,000.00? If we assume a high apr of, say, 22% and a late fee of $25.00 per month, the $11.00 wouldn't even reach $200.00. Also, how did the bank contact your fiance? Doesn't he have the statement they sent him? There would be an account number and an 800 number for customer service listed therein. Check it out. I feel that there's more to this story.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Doug
Posted: Wed Jul 14, 2004 10:00 pm
Post subject: Unjustified Credit Card Late fees
11/9/2001 3:20 pm CDT
Ira, the industry standard is $29 for late fees. And Citibank for example is going to raise theirs to $35. Probably one of the reasons they changed their bill mailing address to New Jersey. More favorable laws for the lender.
So $29 x 6 months = $174 in late fees alone. Depending upon the interest rate which the credit card company could assess, at their discretion BTW, the buildup could be quite substantial because of the compounding interest on the late fees.
Was,in fact, the credit card company damaged $174 for the $11 dollar loan? Of course not, it is a license to steal!
The Federal Government should pass a law limiting credit card late fees to "actual" damages. The credit card companies are currently assessing a "punitive" damage for what is nothing more than greedy price gouging practice.
The credit card company was out no more than a few dollars interest at most by the $11 non-payment. But they are greedy and immoral - they have to pay for those big executive bonuses someway don't they? Unfortunately, the small people are getting hurt in the process. There must be a change.
Write your Congressmen and Senators to change this practice.
Author: Ira Stoller
Posted: Wed Jul 14, 2004 10:01 pm
Post subject: Unjustified Credit Card Late fees
11/9/2001 8:57 pm CDT
OK, I redid my spreadsheet numbers using a monthly late fee of $35.00 and a 25% APR. Compounding the finance charges and late fees over six months, I still come up with just under $235.00. Yes it's high for an $11.00 debt, but it's far from $1,100.00. All I'm saying is that either we don't have the full story or the $1,100.00 figure is a gross exaggeration.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Doug
Posted: Wed Jul 14, 2004 10:01 pm
Post subject: Unjustified Credit Card Late fees
11/10/2001 9:04 pm CDT
Ira, you are assuming a 25% APR. What is to keep the credit card company from charging 50%? Even your credit card?
To me, even that the credit card company is charging more than $15 total is outrageous. They are stealing. They are greedy.
The Federal Government should limit credit card company to assess "actual damages",only, in the case of late fees.
posted by CardRatings.com at 3:58 PM
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