- Posts: 1
- Joined: Mon Feb 22, 2010 1:24 pm
- Location: Los Angeles
When calculating late fees Chevron defines "New Balance” to mean the total of the charges to your account for your billing cycle (irrespective of what your actual balance is) and any future purchases made for the next billing cycle.
For example, let us say that in your January statement you made charges of $1000.00 to your account and you sent them a payment for $999.00 leaving you with a balance of $1.00. This short payment will result in a late fee because you did not pay the card in full. The Chevron Cardmember terms then say that you will be charged a late fee based upon your "New Balance". This means that Chevron will charge you a late fee on your following statement based on $1000 plus any purchases leading up to the next billing cycle. For example, if you made charges of $500 leading up to your next statement, your late fee will be based on $1000.00+$500.00=$1500.00. This essentially means that even though you made a payment of $999.00 you will still be charged interest on that amount plus future charges that have yet to appear on your statement.
I asked the account specialist about the definition of “New Balance” on February 18, 2010 and where in my Cardmember Agreement I could find the definition and the Account Specialist said that the term is not defined anywhere in the Cardmember Agreement. Furthermore, she said that the definition was “redefined internally” by Chevron on January 25th (two days before my January bill due date). I then asked her why I hadn’t received an update on this change and she said that I was either emailed or mailed the update, but I never actually received this update. She went on to contradict herself later though by stating that the term “New Balance” is not defined in the Cardmember Agreement so even if I look through it, I won’t find an explanation and that it is impossible for them to define every term.
Is it legal for them to do this? Has anyone here had a similar issue? I've filed a complaint with the FTC and I'll be mailing out my complaint to consumer affairs. If you have had this problem with Chevron let me know. I'm angry enough about it that I'd love to get a whole bunch of users together to do something.