Credit Card "Change in Terms" BS

[ThoughtCriminal]

It seems every week I get a new "Change in Terms" notice from one of my credit card accounts. I usually skim over them and toss them, but the latest foe my Chase Business Card is a whopper:

"In calculating finance charges, the date when transactions are added to your daily balances and begin to accrue periodic finance charges will be as early as the transaction date."
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"We accrue periodic finance charges on a transaction, fee or finance charge from the date it is added to your daily balance until payment in full is received on you account"


WTF!!!!!

So let me get this strait - I'm to pay thier high interest rate from the moment of purchase up to when I get a statement from Chase plus the time up until they get my check for every transaction?

Good-by Chase! They obviously don't like customers who pay their bills on time. That plastic is heading for the shredder.

[asthmaticeog]

1. No credit card company likes customers who pay their bills on time.

In the credit industry, people who pay off their entire balance every statement are referred to as "deadbeats" since the creditors don't make much off of them in interest.

[physioex]

2. Doesn't sound right......

You mean they are charging you finance charges even before you get your statement based on the date you purchased and even before the date the payment is due?

[ThoughtCriminal]

3. Apparently

And even after I send the payment there would be at least several days of interest before it is received.

[physioex]

5. I understand what you are saying.....

But I don't understand how a credit card company can work this way. For example, I don't carry any balances and I when I get my statement, I pay before the due date. Are you saying that a customer like myself would also be paying finance charges on my purchases? Credit card companies are dime a dozen so I don't understand how all of a sudden one could be doing business this way?

[ThoughtCriminal]

4. Even if they do not get interest from me

They still make money from my transactions. The merchant pays a transaction fee (1.5 - 3% I think). Sure, they would like it if I was paying interest and late fees, but losing my account is not a plus.

For the most part, I think that they are hoping that like most of these notices, cunsumers will ignore it. I plan to call the 800 number next week. I would not be surprised if they offer to let me "Opt out".

[physioex]

6. If you have broadband.....

Go to PBS and watch frontline on the secret history of the credit card.

[NYC]

7. You can read it if you don't have broadband.

I read it. Well worth it.

[physioex]

8. Yea...That too...EOM

:)

[sendero]

9. I don't know for sure..

... but I'm betting this only applies to folks who are running a finance balance.

In other words, if you are paying in full every month, there is no finance charge.

That said, my CC company (Citibank) has taken to pulling some strange stunts lately. I pay in full every month. Twice now, I've gotten bills that were due in a very short time frame.

On the third of this month, I received a bill that is due on the 10th. One week. Now of course, the holidays and the Ford memorial day had a couple days hand in this, but this is getting absurd. If I didn't know better, I'd say they were doing this stuff on purpose, to try to either bill you when you cannot pay in full, and so start paying interest, or don't notice the early date and shoot them a $40 late fee plus finance charges.

If it continues, I'll have to consider doing something different.

[Warpy]

10. Dump those suckers

all of them, unless you have a company card covering expense account items when you travel for business.

It will continue to get worse. Legislation forcing them to become honest will not be signed by this administration.

Plastic is convenient (unless you're in a line behind somebody who is using it), but remind yourself that everybody who is in serious credit card debt started out paying them off every month.

Credit card companies call people who are still able to pay every month "deadbeats," a curious term for people who pay their bills. Unless they can charge you interest and junk fees, you are not a valued customer. That is why your terms will continue to be adjusted again and again.

[Porcupine]

11. Throw all of them out but one.

Use your bank debit card to make purchases. Credit cards are plastic cocaine as far as I'm concerned. I've never had one and never will if I can avoid it.