Deferred Interest Credit Card Loophole?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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krisciti
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Deferred Interest Credit Card Loophole?

Postby krisciti » Fri Jan 28, 2011 10:14 am

Hi,
I had signed up for a 0% balance transfer credit card from citi in Feb 2010. I did NOT know that I signed up for DEFERRED INTEREST balance transfer. I have paid 5% transaction fees and $50 annual fee on a $10,000 balance transfer. I was NEVER LATE or I do not have missed payments. But, looks like as per agreement, I should have paid entire $10000 by end of December 2010 or I need to pay 15% interest RETROACTIVELY for the entire period which is approx.$1400.

I am a MED STUDENT and I did not know that I signed up for this DEFERRED INTEREST credit card. Does this NOT go against NEW credit card rules ?

I talked to Citi customer service and they are unwilling to waive the deferred interest.

Thanks


krisciti
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Thread bump. Any ideas to avoid this deferred interest ?

Postby krisciti » Fri Jan 28, 2011 11:18 pm

Thread bump. Any ideas to avoid this deferred interest ?

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Pete838
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Postby Pete838 » Fri Jan 28, 2011 11:25 pm

I see no reason why they would or should waive it, but it didn't hurt to ask anyways. Call it an expensive lesson, and next time read and understand the fine print.
As for the new CC laws, I don't think they apply retroactively to existing balances. And, it is still legal to offer deferred interest- what they aren't allowed to do is offer no payments during the deferred period.
P.s.
what kind of Citi card was this? Something offered on campus?
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jeffysdad
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Postby jeffysdad » Sat Jan 29, 2011 7:50 am

I'm afraid you're stuck, too, and it is an expensive lesson. Sorry. I wasn't aware that major credit cards offered these kind of deferred interest deals. However, they are common at furniture and mattress stores and the like. I've taken advantage of a couple, and if you're careful they can be a good thing. Your experience demonstrates why it is soooo important to know what you're agreeing to.

Please don't think that I'm trying to pick on you by saying this, but your story reminded me of what a financial planner once told me. This was a guy who had a large number of high-net worth clients. He said among professional people, doctors are by far the worst at managing their money. I'm not trying to suggest that this is true of you, but it's something to be aware of when you're practicing and making big bucks, when $1,400 will seem like chump change.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

krisciti
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Postby krisciti » Sat Jan 29, 2011 3:27 pm

Thanks everyone. Looks like this is EXPENSIVE lesson. This is a Citi American Airlines Advantage card offered when I was trying to attend residency interviews.

Basically, I did not know what this kind of balance transfers exist. As you have mentioned, this kind of offers can be utilized to one's advantage if you know what you are agreeing to.

This is a big amount if you are still in school. Anyhow, Thanks everyone!

big tony
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Postby big tony » Sat Jan 29, 2011 6:59 pm

That is very strange because I was under the impression that banks did not do deferred interest credit card offers.



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