Alex b
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scammers, id shoot them in the face! |
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bud68
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Apparently, your balance was right at the limit and when they posted the finance charge, it put you over. Nothing surprising there. |
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lorijotx
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You receive a finance charge every month. It will keep adding on and on, over balance, until you make a huge dent and get away from the maxed out side.
That is how htey make money off you. |
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SmartA$$
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how? well its a pretty simple computer program that just adds to your balance owed
Why? because they make money by doing it
is is allowed? yes, you have a limit which is the maximum amount you can owe before they stop letting you use you're card. It doesn't matter how much of that limit is money you spend and how much is interest charges or other fees, it only matters how much you owe total. |
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miightymiighty
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They can do that because you agreed to their terms when you first started the card.
This is one of the reasons that credit cards can become a black hole for money.
You need to throw a bunch of money at it and stay on top of it so that you aren't paying over limit fee's each month on top of finance charges, your principal and intrest.
use a calculator like the one in the link below to make a plan to reduce your balance so that you're not playing catch up. |
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Johnny boy
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you should call them to complain about it. Maybe they can take it off if you're a good client and they don't want to loose you. |
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rpetch007
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sorry but its in the fine print on your contract |
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David S
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Finance charges are added to your account every month, based on your balance due. It doesn't matter whether or not it pushes your balance over your credit limit. Always remember that finance companies get their money first, and do your best to pay off that credit card! |
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Clay K
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There is nothing you can do about it. You have a limit on your card that you are not allowed to go over. If your finance charge puts you over your limit, banks see this as your inability to control your finances. They will fine you the first time and most will increase your interest rate if you do it again in the next twelve months.
All of this is explained in the fine print that you received when you signed up for the account. |
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Proverbs31
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I also suspect that you will incur ANOTHER charge called "over the limit fee", if you aren't careful.
Good rule of thumb is this - make note of it:
Keep your balance at only 30% of the maximum credit amount that they allow you.
Example: $1000 credit line means that you do NOT go over a $300 balance. If you discipline yourself to do that, your credit scores will go up.
As far as the jerky thing that your credit card company did to you, it is probably in the fine writing that they can assess fees that may exceed your credit limit. They are in control. You need to be in control, NOT THEM.
Suggest that you pay down your balance to that 30% that I suggested and don't put yourself into this dilemma again! The credit card company has lots of power because they have lots of money. They make the rules. We have to comply.
Another thing, too, is that notice how when inflation went down, Federal loan rates went down, that the Creditors interest rate fees continued to go up? They ought to have charges brought up against them by Congress for unfair trade practices. If you were to loan a friend at 10.0009%, you would be held under the charge of Usary Tax. Up to 10% is ok, but over that is considered illegal. Why then do the Credit Card Companys have 'carte blanche' with our balances?
Is it any wonder that we all get caught up in this credit card debt quagmire???
<'(((>< |
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TallyP
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If your normal finance charge rate was calculated, added to your total and this put you over, they are not in the wrong.
I might look around for a better rate if it is high enough to put you over the top. |
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golferwhoworks
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surely you jest. very little of your monthly payment goes to the principal so it happens ALLLLLLLLLLLLLL the time |
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Bob
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Finance charge typically means interest. So, they applied the interest to your card. I don't see the problem. |
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Dom
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I'll put it this way, say your limit is $5,000 and you spend $4,940 of it, your payment is due on the 30th and you have an interest rate of 12% which means you will have to pay $590.40 in interest alone. Maybe your minimum payment is $53 a month.
If you're late, there is a late charge.
When you get charged interest there is a charge
Both fall directly under "Finance Charge" on the billing statement, If your minimum is $53.00 and you have $60.00 left on the card, $6.36 would come out of your minimum payment and the rest would go to the principle amount.
However, if you are late making your payment not only will you get charge separately for the interest, but you will get a finance charge for being late, if the charge for being late and the interest charge equal $75.00 then you will end up going over your limit even if it's only $5,000.
The bank needs to charge you late fees and interest some how right? If you don't make your payments then they only way for them to keep track of what you owe is on your credit card, if your card is near max out and you accrue a penalty charge then they have to bill it to the original card, weather it goes over your limit or not.
Hope that helped. |
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Squish
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look at the customer agreement. Read it throroughly more than once and if it dosen't mention the charge, then contest it with the bank. |
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Renee H
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what kind of finance charge? is it a recurring charge or a "one time" fee for something? I am a bookkeeper so I could probably help you if I had more info. |
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magnolia_76
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Sounds like you may need to cancel that card, make a payment plan with them, and leave the account closed.. just my opinion |
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Something's Fishy
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Yes, they can do that. Call them up and request that it be reversed. They probably will not reverse the finance charge, but they may take off the over the limit fee...
But, you have to ask. Also, while you have them on the line, request a copy of their terms & conditions so you can read their policies and whatnot. |
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oak.queen
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its cuz all they want is money they dont care that you have needs to and that you have people to take care of to |
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matthewc65
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It's a business........sadly they can do what they want. You can charge a lawsuit though. |
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Just M
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who ever answers the phone you can understand ....cheap labor . |
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FranciscoinSanFrancisco
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the question is confuse. |
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