AMEX charged interest during 0% promo period

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AMEX charged interest during 0% promo period

Postby crowd79 » Wed Feb 13, 2013 8:32 am

Credit card companies are so shady these days. So I'm under the 0% promo period on purchases until next January. Paid last months minimum amount due and they decide to charge $1.04 interest on my $75 annual fee, even though it was billed as a purchase at 17.99%! The rest of purchases are separate at 0%. Very shady. Now im forced to pay off the entire balance, right?...to keep the interest charge from growing?
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Re: AMEX charged interest during 0% promo period

Postby livesoft » Wed Feb 13, 2013 8:34 am

LOL! I'll guess that you either did not read the fine print or did not understand the fine print, but certainly did not appreciate the fine print. :)
Call them up and get your $1.04 back plus the interest they are going to charge you the next billing cycle.
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Re: AMEX charged interest during 0% promo period

Postby crowd79 » Wed Feb 13, 2013 8:59 am

Fine print, whatever. Why don't they specifically mention it when I applied for the card. Can't wait to rip them a new one when I call. As they say, it's the little things in life that bug ya!
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Re: AMEX charged interest during 0% promo period

Postby Sam I Am » Wed Feb 13, 2013 1:22 pm

Message deleted.
Last edited by Sam I Am on Sun Oct 06, 2013 3:07 pm, edited 1 time in total.
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Re: AMEX charged interest during 0% promo period

Postby Russell » Wed Feb 13, 2013 1:39 pm

crowd79 wrote:Now im forced to pay off the entire balance, right?...to keep the interest charge from growing?


You shouldn't have to pay off the entire balance.

I recall having a similar discussion with AMEX after I got my first month's statement. Thanks to new protections passed in 2010, any payments beyond the minimum required are now directed to high interest balances first -- so if you just pay an extra $75 for the annual fee (with maybe a little buffer for the interest), you should be in the clear....

Best,
Russell
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Re: AMEX charged interest during 0% promo period

Postby Eldendor » Wed Feb 13, 2013 1:48 pm

It's your fault not theirs. The 0% promo doesn't apply to the annual fee. Make an immediate $100 payment to be sure its cleared out move on (you don't need to pay off the whole balance). You don't need to be "ripping them a new one". I had to learn the same lesson. Chalk it up to experience. :beer
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Re: AMEX charged interest during 0% promo period

Postby crowd79 » Wed Feb 13, 2013 1:54 pm

Russell wrote:
crowd79 wrote:Now im forced to pay off the entire balance, right?...to keep the interest charge from growing?


You shouldn't have to pay off the entire balance.

I recall having a similar discussion with AMEX after I got my first month's statement. Thanks to new protections passed in 2010, any payments beyond the minimum required are now directed to high interest balances first -- so if you just pay an extra $75 for the annual fee (with maybe a little buffer for the interest), you should be in the clear....

Best,
Russell


So I just got billed yesterday ($35 minimum payment) for a due date of March 7th and that is where I noticed the $1.04 charge. If I go online and pay $112 ($35, $75, $1.04+) today, then I should be good?
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Re: AMEX charged interest during 0% promo period

Postby Eldendor » Wed Feb 13, 2013 2:00 pm

crowd79 wrote:
Russell wrote:
crowd79 wrote:Now im forced to pay off the entire balance, right?...to keep the interest charge from growing?


You shouldn't have to pay off the entire balance.

I recall having a similar discussion with AMEX after I got my first month's statement. Thanks to new protections passed in 2010, any payments beyond the minimum required are now directed to high interest balances first -- so if you just pay an extra $75 for the annual fee (with maybe a little buffer for the interest), you should be in the clear....

Best,
Russell


So I just got billed yesterday ($35 minimum payment) for a due date of March 7th and that is where I noticed the $1.04 charge. If I go online and pay $112 ($35, $75, $1.04+) today, then I should be good?


Yeah if you were just billed, I would pay $120 just to be sure its cleared out and not sweat what the daily charge is and when your payment will actually be applied.
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Re: AMEX charged interest during 0% promo period

Postby crowd79 » Wed Feb 13, 2013 2:31 pm

Thanks! I did not clearly understand the new credit card bill of rights law passed in 2010. That clears that up.
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Re: AMEX charged interest during 0% promo period

Postby southerndoc » Thu Feb 14, 2013 2:36 am

The new credit card law requires that banks allocate any payments over the minimum to balances with higher interest rates before being applied to interest-free balances.

In other words, if your minimum is $100, and you owe $75 in fees that is subject to interest, then you should pay the minimum, plus the balance subject to interest, plus the interest charged (and then maybe 10% extra just to ensure the interest is actually paid and they don't charge you further days interest after you were billed).
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