- Report: #460625
Complaint Review: U S Bank Northwest Visa Credit Card - St. Louis Missouri
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U S Bank Northwest Visa Credit Card
P.O.BOX 790408 St. Louis, 63179-0408 Missouri, U.S.A.
Phone:
800-NWA-VISA
Web:
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Bank Of America Northwest Visa Credit Card Finance Charges on Unpaid .85cent balance St. Louis Missouri
My current credit card bill showed a carryover balance of .85 from the last statement. The last statement bill was $98.85. I called the CC company to give them a change of address back in May. At that time, I asked what my statement balance was for that billing cycle, and was told $98.00, which I sent out immediately. I always pay off my CC when I receive my bill, however, because of the address change, I was concerned that the bill would not reach me on time.
Today I received my June bill, and found a $3.70 FINANCE CHARGE added to this statement. I called US Bank to see what this FINANCE CHARGE was for. I was told that the .85 carried over from the prior bill was the reason for the FINANCE CHARGE.I asked just exactly what percent interest could you people be charging that would take a .85 balance and have it accrue a $3.70 FINANCE CHARGE in one month!Well, he said, we take the .85cents, and multiply it by 365, and then charge our current interest amount on that. SERIOUSLY~I told the representative that I wanted my complete balance, including any "pending" charges that didn't appear on this current bill, and I would pay off this Visa and cancel it. At that point he offered to "waive" the FINANCE CHARGE of $3.70.
People need to be warned about this kind of ripoff. Because I am able to pay my CC off at the end of each billing cycle, I caught this outrageous charge. I am concerned however about anyone that carries over a balance, and doesn't really look at what US Bank is charging in FINANCE CHARGES, or how they are now calculating them. I believe what they are doing is illegal, or at least I hope it is.
Terri
Bradenton, Florida
U.S.A.
Today I received my June bill, and found a $3.70 FINANCE CHARGE added to this statement. I called US Bank to see what this FINANCE CHARGE was for. I was told that the .85 carried over from the prior bill was the reason for the FINANCE CHARGE.I asked just exactly what percent interest could you people be charging that would take a .85 balance and have it accrue a $3.70 FINANCE CHARGE in one month!Well, he said, we take the .85cents, and multiply it by 365, and then charge our current interest amount on that. SERIOUSLY~I told the representative that I wanted my complete balance, including any "pending" charges that didn't appear on this current bill, and I would pay off this Visa and cancel it. At that point he offered to "waive" the FINANCE CHARGE of $3.70.
People need to be warned about this kind of ripoff. Because I am able to pay my CC off at the end of each billing cycle, I caught this outrageous charge. I am concerned however about anyone that carries over a balance, and doesn't really look at what US Bank is charging in FINANCE CHARGES, or how they are now calculating them. I believe what they are doing is illegal, or at least I hope it is.
Terri
Bradenton, Florida
U.S.A.
2 Updates & Rebuttals
Robert
Irvine,California,
U.S.A.
I'm not surprised...
#2Consumer Comment
Fri, June 12, 2009
That US Bank said they would waive the fees since your title starts off by saying Bank of America. If you had this same lack of detail in listening to your balance, I would bet that you just didn't "hear" the $0.85, and I am pretty sure that you misunderstood what the rep said on how they calculate interest. Not knowing what the Carry-Over was from the previous month(if there was one) or when the exact charges were made. If you carry-over a balance(even $0.85) they calculate the interest on the Average Daily Balance from the previous month. So depending on what this was, and the interest rate it is possible that that comes out to about $3.70(which by the way they were willing to waive). As to interest rates. Most are calcuated with a Daily Interest Rate, this is the APR divided by 365. So if you had a 29.99% interest rate that is 0.0821% daily. Also, in most cases the Minimum Finance charge comes into play on a month that Finance charges would be assessed but less than the actual Finance Charge. For example if the Finance charge ends up being $0.75 but the Min FC was $1 they would be charged $1. But had they had a $0 balance the previous month and paid it off there would have been no FC charged.
I Am The Law
Cincinnati,Ohio,
U.S.A.
Finance charge.
#3Consumer Suggestion
Fri, June 12, 2009
Terri, most credit cards carry some sort of finance charge even if you pay off the balance in full. It usually ranges from .50 to $2. This is how credit card companies make money off of people who actually pay their bill in full every cycle. Review your terms and conditions booklet and see if this is the case.
