Complaint Review: G.M. Credit Card - Salinas California

Karon - you wrote "Next, it may come as a surprise to many, a creditor is not required to send you a statement. They do it as a courtesy. Your payment is due the same time every month regardless of receiving a bill." As a general statement, that is NOT TRUE! My credit card company sent me a notice several months ago to notify me of changes to our "agreement." One of the changes was that my payment due date "...may be 30 to 45 days after the last payment due date based on my payment history." Prior to this change, my VISA payment was due on the 21st of the month. Now it changes each month. I have to RECEIVE A STATEMENT to know when the next payment is due. I called customer service, as the "agreement" requested because I did NOT AGREE to the "flex-billing." I view this as a means to add late fees when a customer is late because the payment date has moved up from the last payment due date. Example: previous 2 billing cycles are 40 days apart, but the next billing cycle is only 30 days apart, and the customer doesn't check and mails a payment based on the perceived 40 day billing cycle - PRESTO - LATE FEE, and increased APR! Further, in New York State, a statement (BILL) is not a courtesy - it's a requirement of law. In order to lawfully collect, the creditor must present a bill - the statement is both, a statement and a BILL which clearly states the minimum payment required and the date payment is due. I know of no state in the U.S. where a BILL is not required to be presented to the customer. I know of no revolving credit card company that is not required to mail a bill to the customer, if the customer insist on it. I have the OPTION to receive my statement via email but I have opted for my statement to be mailed - they MUST do this. IT IS NOT A CURTESY - it's the law. Kindly inform us what credit card company believes it is NOT REQUIRED to mail a monthly statement/bill so I can make sure that in the future I don't use them. Further, check the UCC (I know of no state that has not adopted the UCC) - a bill MUST be presented in order to lawfully collect.

I don't disagree that they technically had a legal right to do what they did. Assuming that they actually did mail me the billing which never turned up in my mailbox, which does seem a bit coincidental as it's never happened before to my recollection in 20 years as a customer of theirs. Nor do I disagree that they didn't have every right to take me up on my statement that I wished to close the account if the situation couldn't be rectified, as if it couldn't I had no intent of ever doing business with them again so the lost points were moot. The point is I was a good customer for 20 years, having run well in excess of $100,000 through my account in that time frame and using the program to purchase several G.M. automobiles. So yes while perhaps naive of me, I was actually suprised they didn't make some attempt to rectify the situation. In a ham handed attempt to squeeze a few extra dollars out of me they forever lost a customer of both their card and vehicles and have this posting about them here. Of course that isn't going to change anything in the overall scheme of things nor does it make me really feel any better. Just seemed the right thing to do to say something. Gene

"..that if it wasn't rectified I would close my account". You gave them your terms and they gave you their answer. I love it when people threaten to do something and then when you take them at their, word they wonder why. That's the crappy thing about those promo low interest rates. Miss one payment and you're screwed. I'm surprised it ONLY went to 14.5%. Alot of these ripoff companies jack their rates up to 21 or 24% interest once you default on a promo rate. IF you had wanted to keep your $3000+ worth of points you didn't have to "close your account". You could have just paid it off, but you did give them YOUR terms which they accepted. It was a ripoff.

Hi G., I'd like to start by saying that your situation is common. I am a financial specialist and work with people daily with debt and credit card issues. It is unfortunate this happened however the credit card company had every right to do what they did. Credit card companies offer promotional rates to get customers to take advantage of the low rates, knowing many will default on the repayment agreement. These low rates are know in the industry as "teaser rates." If you read the disclosures that by law was included with that offer, it outlined the terms of that 2.99%. What a creditor classifies as a missed payment is any of the following: 1. Not making the payment at all. 2. Paying a partial payment. 3. Paying less than the minimum payment required which includes and late and over the limit fees. 4. Anytime there is more than 30 days between payments. 31 days is late and you will get the fees. In the disclosure it will plainly tell you if you default, your interest rate will be XXX amount. Next, it may come as a surprise to many, a creditor is not required to send you a statement. They do it as a courtesy. Your payment is due the same time every month regardless of receiving a bill. You also had the option of calling the credit card company to let them know you did not receive a bill and make the payment over the phone or via the internet. I am not trying to pick on you but most people have this happen because they fail to read the disclosure. It is our responsibility as consumers to be better informed and aware what we sign on the dotted line for. Although this is a tough penality to pay, it is how credit card companies make money. Empower yourselves and read everything you can get your hands on about credit so you are informed of your rights. You would not go to a closing on a home and just trust that the contract was correct and the details thereof, why not read what you signed up to get!