Why do I have to pay $1.75 in "minimum interest" for 1 penny?

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mariajosefa
 
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Why do I have to pay $1.75 in "minimum interest" for 1 penny?

Postby mariajosefa » Wed Mar 14, 2012 10:13 pm

I sent in my monthly payment and accidentally wrote the check for one penny less than the full amount. Since I had a balance due (one penny), I was charged $1.75 minimum interest. Is this the common practice among all credit cards? It seems very unfair to me.


Dylan1982
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Postby Dylan1982 » Thu Mar 15, 2012 10:46 pm

Hahaha I have no answer but I think that is quite funny.
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musicisstopping
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Postby musicisstopping » Fri Mar 16, 2012 11:36 am

Obviously phone the creditor, explain the situation, and ask for a one-time courtesy refund.

jeffysdad
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Postby jeffysdad » Fri Mar 16, 2012 1:19 pm

ditto what music said.

I think they all have some amount set as the minimum interest. I suspect the intent is to keep people from carrying very low balances on which the interest charged is not profitable enough in the bank's opinion.
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creditcruncher
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Postby creditcruncher » Mon Mar 19, 2012 2:51 pm

It is part of your credit card account terms. Almost every single bank/creditor has this as a part of the contract between you and the creditor, and you accepted the terms when you applied for the card.

It is just another way for banks to make money. Just think of all of the thousands of customers that have very few dollars, pennies even, in leftover balances that can accrue interest. Banks are in the business of making money, this is just one way they do that.

Crashem
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Postby Crashem » Tue Mar 27, 2012 12:19 am

mariajosefa wrote:I sent in my monthly payment and accidentally wrote the check for one penny less than the full amount. Since I had a balance due (one penny), I was charged $1.75 minimum interest. Is this the common practice among all credit cards? It seems very unfair to me.


Wow. I haven't notice this on any of my cards when I left a balance. What card did this btw?
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namvet
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Postby namvet » Tue Mar 27, 2012 12:06 pm

This sounds like something Credit One might do.

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Pete838
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Postby Pete838 » Wed Apr 11, 2012 9:36 pm

Mailing out monthly statements ain't free! Most cards have a min. interest. It's in the standard declarations on the back of every CC offer mailer.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
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