Amex let me pay OTC (Over Time Charge), even if I pay on time

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Thomas Prade
 
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Amex let me pay OTC (Over Time Charge), even if I pay on time

Postby Thomas Prade » Sat Apr 11, 2015 6:12 am

I always pay my Amex on the 21st of the month to avoid OTC. But because Amex says I choose to pay over time, even if I pay on time I have to pay the Interest.
An employee of Amex had guaranteed me , that I dont have to pay the OTC. But when I saw my CC statement, I saw the OTC.
I just chatted again with Amex. They just simply tell me that the previous employee made a mistake, and there is nothing they can do. I gave Amex 72 hours to come with a satisfying solution.
Are there more people with the same thing?


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nismoZtuner
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Postby nismoZtuner » Sat Apr 11, 2015 1:30 pm

Thomas Prade wrote:Are there more people with the same thing?


I have that "feature" as well on my PRG but havent had the need to use it- I make sure my statement closes with a $0 so not sure if that has helped avoid fees..
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CarefulBuilder14
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Postby CarefulBuilder14 » Sat Apr 11, 2015 2:05 pm

nismoZtuner wrote:I have that "feature" as well on my PRG but havent had the need to use it- I make sure my statement closes with a $0 so not sure if that has helped avoid fees..


So if you have that "feature", you don't get a grace period (or what would be called a grace period on a regular credit card)? That's awful.
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Postby takeshi » Sat Apr 11, 2015 5:31 pm

Nope.

https://online.americanexpress.com/myca/lending/enroll/us/action?request_type=payovertime
We will begin charging interest on Select & Pay Later charges as of the date they are added to a Pay Over Time balance.


If one wants a grace period then one should find a credit card that offers one. A charge card is definitely the wrong place to look.

Thomas Prade wrote:But because Amex says I choose to pay over time, even if I pay on time I have to pay the Interest.

That's how it works. Read the above. There's also a FAQ linked from that page. The CSR shouldn't have told you otherwise but AmEx provides terms for their products. Make sure you read and understand that stuff with any creditor.

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Postby MemberSince99 » Tue Apr 14, 2015 10:53 am

Jesus, that's like Credit One or one of those bottom of the barrel companies. They offered me the same thing when I got my card I didn't accept it, and never used it, I'm sure glad I didn't.


The luster is really coming off of Amex these days. Now that they don't backdate new cards, there really is no reason to get your first Amex as soon as possible. In the past I used to tell people get your first card as soon as you can so future cards can be backdated. Now I'd just say get one if and when it makes sense for you to do so. And whatever you do, DON'T use pay over time - the interest rate on the charge cards is not very good. I never paid much attention but I think mine is like 21.24% or something.

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Postby JamesMS » Wed Apr 15, 2015 5:14 pm

takeshi wrote:Nope.

https://online.americanexpress.com/myca/lending/enroll/us/action?request_type=payovertime


If one wants a grace period then one should find a credit card that offers one. A charge card is definitely the wrong place to look.


That's how it works. Read the above. There's also a FAQ linked from that page. The CSR shouldn't have told you otherwise but AmEx provides terms for their products. Make sure you read and understand that stuff with any creditor.


I agree here.
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Re: Amex let me pay OTC (Over Time Charge), even if I pay on time

Postby amex007 » Fri Apr 24, 2015 10:53 am

Basically, this whole OTC feature to the charge cards was to try to entice consumers to pay interest allowed on qualifying purchases.
The option allows you to pay a little later on purchases exceeding $100. So your due balance for that statement period is total of all purchases under $100 and you have longer to pay for the larger purchases (at the 20% APR or so. think remaining balance carries over to next statement). Obviously this is a new feature from the classic charge card PIF. I didnt really want it but they offered 10k MR pts to sign up so i did but I still PIF by the 1st of each mo and pretend the option isnt available.
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Re: Amex let me pay OTC (Over Time Charge), even if I pay on time

Postby travisrauh » Wed Apr 29, 2015 9:31 am

Hi - I'd like to take a shot at clarifying how Pay Over Time works as there seems to be a lot of confusion.

Pay Over Time, as you're all already aware, is the option to pay eligible charges over time as opposed to pay in full like a traditional charge card. There are two versions of this - Select & Pay Later, in which you call American Express (or go online) and ask to move eligible charges - usually charges $100+ - into your Pay Over Time balance. The second, is Extended Payment Option - which is the same as Select & Pay Later, but it's automatic - all eligible charges go into Pay Over Time right away. You cannot have Extended Payment Option without having Select & Pay Later first.

Having a balance in Pay Over Time does not necessarily always mean that you'll be assessed interest right away - it works the same with the other lending cards. If you pay your statement balance or current balance (which is your statement balance minus any payments or credits that have been applied since statement closing - you can see this balance on the "pay bill" screen on the website or mobile app) in full before your due date, you will not have any interest charges. The only time you will start being assessed interest on your statement is if you do not pay that current balance in full by your due date - at which point it will continue to compound on a daily basis until that new current balance is brought down to $0.

Please remember that if/when you do decide to revolve a balance, that is pay less than your current balance by the due date, you will see residual/rolling interest for those number of days between the last statement closing date and the date that you brought that current balance to $0 on the following statement.

Hopefully this can clarify how finance charges work on Pay Over Time. You are not required to have Pay Over Time on your account and if you would ever like to remove it, or if you have any other account-specific questions, please dial the number on the back of your card and a representative will be happy to assist you.
I am an employee of American Express. All posts are those of my own and do not reflect the actions or opinions of AXP. While all efforts are made to ensure accuracy in my posts, for official statements or responses, please consult with @AskAmex on Twitter or dial the number on the back of your card.



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