Paying Your Credit Card Balance – A Word Of Warning

A few weeks back I wrote about how credit card interest is calculated and charged. I was especially interested in this as I was paying off my Bank of America card (with the 29% APR).

I paid my balance in full (approx. $6,500) via the B of A website on January 22nd, and after speaking with a customer service representative, I determined that I would be charged interest on my previous balance from the closing date of my prior statement (ending January 15th), through the pay-off date, which I assumed was the 22nd.

As of yesterday, the payment had still not been debited from my bank account. I also had no record of said payment because B of A never sent me a confirmation email, nor was it noted on the website.

I called up customer service again and was told that unless I manually select a payment date, it defaults to the due date, in this case February 9th. So, instead of paying a roughly $50 finance charge, I’ll be paying around $200.

Just a word of warning for those of you who are planning on paying off a balance or pay your balances monthly. Keep an eye on issues like this and grace periods.

Additionally, this is what the payment page looks like today:

As today is the 4th, I see that the payment defaults to the 5th. I can only assume it defaulted to the 23rd when I made my payment on the 22nd.

I will definitely be calling them on this.


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5 Responses to “Paying Your Credit Card Balance – A Word Of Warning”

  1. Triphena Says:

    Dude, fight that shit. I had a BoA card for awhile, and like you (and just about everyone else), kinda screwed it up. I got in touch with them to set up a payment plan, and the guy on the phone was like, “well, I can set up an monthly withdrawel for this date every month, how does that sound?” So I said sure and didn’t give it another thought. Months later I realized I was getting hammered with late fees, so I called and gave them the WTF? I’m making monthly payments, on time, so why are you charging me? And the rep said that the monthly payments were schedueled for the 20th but my payment was actually due by the 10th. I immeadietly asked for the supervisor and was like, YOUR rep set this date up, NEVER said anything about the due date, told me this would be fine and would get this cleared up and now I owe $14 more than I did four months ago, fuck you guys. (Ok, I left out the fuck you guys, but it was implied). Anyway, they ended up refunding me about $900 in late fees, so that was nice.

  2. pennyplastic Says:

    Assholes! Banks are evil, I’m serious.

  3. John (aspex) Says:

    Especially BofA, so I hear. it seems to be run like a scam sometimes.

  4. Claudia (Bluebears) Says:

    Ok I am pretty sure that’s illegal, and I think I can tell you what section of the UCC they are in violation of, but I don’t want to give you wrong advice. I emailed my friend who works for a huge law firm that represents like all the major credit card companies (yeah he works for the Empire pretty much he admits it). I will get back to you if possible (if he checks his email).

  5. bebehblog Says:

    That’s just another example of how B of A is EVIL. Their credit card is the only account I’ve ever actually called and CANCELED even though I knew it would hurt my credit just so I would never have to deal with them again.

    My Discover Card automatically defaults payments to the same day you submit them but gives you a very clear option to change the date to anything before your actual due date. I love setting up future payments a few days before payday just so I don’t forget or “accidentally” spend my money on J. Crew cardigans instead.

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