I have a United Plus First Card VISA card, which has recently been bought buy Chase Bank. I have had credit cards since the mid 70’s, and while I try and pay them off in full, occasionally I miss a payment by a few days for various reasons. Most banks, including First One which USE to hold this card actually use to give a 3 day additional grace period. Not any more.
And that is what happened with Chase Bank, the new owner of my United First Card. My payment in December was late, and I am STILL being charged finance charge even though I am paid in full.
Seems, the payment for my bill due in December missed their bank by TWO DAYS! TWO stinking days. It was due on the 10th, they posted it in the 12th. Never mind that their payment system was down for serveral days. Never mind I pay all bills electronically, it was two days late, so my bad!
What does that mean? Well, with most credit cards I have owned, you are charged an outrageous finance charge for ALL the charges for the previous month, AND, if you have outstanding balances, all those charges too. They calculate an “AVERAGE DAILY BALANCE” for the billing cycle and apply the finance charge to that. Fine, I was late, I should pay that charge, but wait, it gets worse. I received the January statement, and even though the balance was 0 because it showed the payment, it was 2 days late, so I was charged. That sucks, but that is life!
Chase/FirstCard (and any other mileage card through Chase/BankOne) goes steps further with new and better ways to charge you money though. And even though I cannot find it in their card agreeement, they told me that IF YOU ARE LATE< they remove the grace period for the NEXT month after a late payment on ALL NEW CHARGES, and charge you finance charge on EVERY NEW charge after that date through the end of the next billing cycle, EVEN if you pay that next bill in full and on time and when it is due! Let me say this again: My previous balance was $0, but paid 2 days late. On the next I was charged $58 finaice charge on all those charges,the balance was 0 again because the payment WAS posted. So I paid THAT bill w/ the finaice charge in full and on time, and once again $0'ed the balance. My NEXT statement, again showing $0 coming in has another $35 finance charge!!!! AND, to make this worse, EVEN if they received the late payment during the billing cycle, they continue to charge you finance charge on the average daily balance BEYOND the date they received payment, all the way to the end of the next billing cycle. WHAT? I miss one payment, and now I pay finance charge on the missed part AND on anything I buy and properly pay off for the next one too. That cannot be legal! Confusing, you bet. Get this: Well, these guys claim that I "gave up" the "grace period" on the next billing cycle when I miss a payment. (I cannot find that anywhere in the agreement) But, that means, even though I was paid in full for the next cycle, and even though I paid the previous balance in full (but a few days late,) I now have to pay an additinal finance charge on all my NEW purchases in the billing cycle after the late payment that I have not yet even been billed for. In addition, they seem to not care when you make your payment, finance charge continues to accrue until the next "printed statement date", which in this case was 10 to 12 days after my payment was received AND credited to my account. So basically, I missed 2 days and was charged about 35 to 40 % per year interest rate, because they charge me going backwards AND going forwards. Oh, and had my payment been another 2 days later, and additional $35 late fee would have been added to this finance charge, basically bringing the APR for missing a payment by 2 days to abuot 45%/year! And this is legal? Oh yea, because this is a mileage card, I pay a yearly fee for it too! *SIGH* I repeat, NO other caed has even done this in the 35 years I have had credit cards. NONE! Damn, I do not need additional miles this badly! For $35, they have lost me as a customer. They credited me the amount after I complained loudly too, but it does not matter, I start my search for a new card on Monday. This policy is on the edge of being illegal as far I as can see. How can you continue to charge someone interest AFTER they have paid their bill in full? How can you charge someone interest on items that have not even been billed yet, and then WERE paid off on time? Well, Chase/BankOne is going to show you how, so be aware! If you have their card, you may be getting billed more than you should. And if you have a Chase/FirstOne Bank card, I suggest you pay it off and cut it up. Call them and tell them their finance charge rules are outrageous. (ask them to explain it...it is very funny!) Find a card from a bank that will treat you with respect, not try and rip you off, because personally, be charged like this is insulting. Chase/FirstBank Visa: LEAVE HOME WITHOUT IT!
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