Household Bank is unjustified and has excessive late fees! They will not accept electronic bank fund transfers. Rip-off! Wilmington Delaware
In May of 2003, I used a Household Bank issued credit card to purchase a DVD player from Best Buy on three month deferred payment and interest charge promotion. The card that Household Bank issues for Best Buy requires a minimum payment even though it is supposed to be interest and payment free for a specified time that varies depending on the Best Buy promotion.
I received my first bill with a minimum payment of $10. I paid Household $100 with a check issued and sent from my bank. Unlike the vast majority of the credit card companies I deal with, Household Bank will not accept electronic fund transfers from my bank.
When I received the second bill I was surprised to see that there was a $29 late fee included in my bill. I was certain that I paid my bill ahead of time but was told by a representative from Household that my bill was 2 days late however they would wave the fee. I looked back at the date I requested my bank to send the check and realized had ask them to send the check 3 days before it was due. My bank suggests that one request that checks be sent out 5 days before they are due. I paid the second bill with a $100 check sent from my bank 5 days before the bill was due.
My 3rd bill contained another late fee of $29. I call and was told that my bill was 2 days late again and that they only waved 1 late fee. I said that my bank sent the bill out 5 days before it was due. The Household's rep said Household sugests that payments be sent out 10 days before they are due and then lectured me about maintianing a good credit rating. This even though I had already sent Household Bank $200 on a $300 bill on a sale that was supposed to have not been due for another month. By my calculations Household Bank was $180 ahead at the time.
I paid off the last $100 dollars I owed on the origonal purchase but not the second late fee. I have no intention to pay that fee and every time I tried to speak to someone at Household about the acount I got a lecture about how important it is to maintain a good credit history. They sent my bill to a collection agency though I continue to receive bills from Best Buy that now total $160, all late fees for not paying a late fee.
I have not stepped into a Best Buy since even though in the past couple of years I had spent over $2000 at Best Buy.
Thomas
Waukegan, Illinois
U.S.A.
2 Updates & Rebuttals
Arianna
Wilmington,Delaware,
U.S.A.
You should check your facts
#3Consumer Suggestion
Sat, January 15, 2005
You were incorrect in thinking that Best Buy offers a no payment promotion. They have not offered a no payment promotion since February of 2002. Also, in the future, HOusehold Bank as well as every other bank will accept electronic payments under the "check 21 system." It is a mandatory requirement that most banks should have available within the next two years.
You should check with your online banking provider. If they told you that the payment was submitted electronically and it was actually mailed in the form of a paer check, you may have recourse against them. If that is the case, you should ask them to reimburse you the fees that are being billed to the Household card and promptly call the collections agency and ask for a settlement. The longer that you prolong in paying the bill, the more the fees will assess and your credit will be ruined.
Tam
Disneyland,California,
U.S.A.
Way to solve it...possibly
#3Consumer Suggestion
Fri, January 07, 2005
Hi Tom,
I think the best way to kick their arsh is to do online banking with them. I never had any problems of making my payments on time paying online with Capital One.