Does double/two-cycle billing still exist?

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Keysmasher
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Does double/two-cycle billing still exist?

Postby Keysmasher » Fri Mar 04, 2011 4:53 pm

If so, what cards still practice this type of billing practice and what is it exactly?


redeye
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Postby redeye » Fri Mar 04, 2011 5:13 pm

Wasn't that banned by the reform rules?

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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Mar 04, 2011 10:38 pm

Credit card double cycle billing was a dirty trick where interest would be charged for the average daily balance for the past two billing cycles, if a balance was carried. That would mean if a balance was carried for 1 month, there would be finance charges for it over 2 months.

Anyway the credit card reform abolished this practice.
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Keysmasher
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Postby Keysmasher » Sat Mar 05, 2011 12:41 am

Mogul of Pineapples wrote:Credit card double cycle billing was a dirty trick where interest would be charged for the average daily balance for the past two billing cycles, if a balance was carried. That would mean if a balance was carried for 1 month, there would be finance charges for it over 2 months.

Anyway the credit card reform abolished this practice.


So it punishes irresponsible consumers, but what about those that PIF? Was the bill sent every two months or was a bill sent 1 month and you had the option to not pay, pay a minimum, or PIF; then the next month is where you HAVE to PIF or face finance charges/penalties for the past two months?

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Postby Mogul of Pineapples » Sun Mar 20, 2011 3:52 pm

With two cycle billing, the statement was still sent every month. If you always paid in full then it wouldn't affect you. Who it hurt were those that had ocassionally carried a balance. If a balance was carried for one month, it would end up costing them interest on the month after too.

Luckily it is not something any of us in the United States have to worry about any more.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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