Stile
Phoenix,#2Consumer Suggestion
Thu, November 08, 2007
This change was actually a federally mandated change late last year, but may have only been recently applied to collection accounts. Essentially, the logic behind the government's decision was that if a customer only pays their minimum payment, it may take them many years to pay off a balance. However, if they are forced to pay a fixed percentage of the debt plus interest, then they will pay off the debt much more quickly (a few years, instead of 10 or 20). It's actually to your benefit to pay it off faster, even though it hits your wallet harder. As far as the statement insert, you have to read everything you get from your bank. You have a contract with your bank that can be amended at any time. Banks typically send out updated agreements on a yearly basis, but they may send amendments any time. When you ignore your statements, particularly on your credit card, you're apt to get an unwelcome surprise.