- Posts: 1
- Joined: Wed May 01, 2013 11:14 pm
- Location: St Louis, MO
Bank of America's Visa card operation has a questionable method of calculating interest on balance transfers which I have been unable to determine the legality of.
Visa calculates interest on purchases and "balance transfers" deducting same from the monthly payment submission.
In the next statement or billing cycle Visa adds the interest from previously collected interest on "balance transfers" to the balance subject to finance charges in the subsequent period. This results in the compounding of interest on interest with "balance transfers" growing due to the cumulative effects of calculating (and collecting) interest in one period, adding it back to the next months balance subject to finance charges, then calculating interest anew.
This seems to violate common sense, if not credit regulations, of calculating and collecting interest on ever increasing balances.
I would appreciate feedback anyone has to offer.