Personal Finance

PC Mastercard B*** S***

  • Last Updated:
  • Mar 15th, 2010 9:25 pm
[OP]
Newbie
Jan 19, 2008
81 posts
3 upvotes
Toronto

PC Mastercard B*** S***

So, February statement comes out, balance due is $7834.00 due on March 3rd.

I make a payment of 7800.00 (forgot 34.00 in error) on Feb 15th.

My march statement includes "interest" of about $108.00

I call to inquire, apparently the "Cardholder agreement" allows them to charge interest on the full 7834.00 even though I paid off like 98% of what was owing, not charge interest on the 34.00 only.

Are you f'n kidding me?
Is this true?
Anyways, I told them to shove their card and cancelled it.

I always pay off my balance in full so never gone through anything like this before, is this what other cc companies are doing to people too?

Let me know!
35 replies
Deal Guru
User avatar
Apr 24, 2006
10554 posts
800 upvotes
Mississauga
Ya, that's normal
Deal Addict
Nov 1, 2009
2646 posts
82 upvotes
That's nonsense. Follow up with the Consumer Protections guys. This is ridiculous and they are just stealing your money.
Deal Expert
User avatar
Dec 11, 2005
19797 posts
2548 upvotes
This is the same for pretty much every CC under the sun. Read your agreements...
To be nobody but yourself - in a world which is doing its best, night and day, to make you everybody else - means to fight the hardest battle which any human being can fight; and never stop fighting. -- E. E. Cummings
Deal Guru
User avatar
Aug 20, 2005
10628 posts
2341 upvotes
Nowhere
Every credit card does this. This is why you should always pay your bill in full and make sure you have the current balance. Some credit cards namely Amex, will also charge you interest on your following months balance if the previous month was paid late or not in full because your account is not in good standing so the interest grace period no longer applies.

If you call them and act nicely, they will waive the interest once per year.
Sr. Member
Feb 11, 2010
502 posts
261 upvotes
Phoenix3434 wrote: That's nonsense. Follow up with the Consumer Protections guys. This is ridiculous and they are just stealing your money.
It's not nonsense, it's standard operating procedure for every credit card.
Sr. Member
Mar 15, 2008
530 posts
121 upvotes
Montreal
With a charge that big you could have probably gotten it waived. My coworker had the same issue and got them to waive the interest or he would cancel.
[OP]
Newbie
Jan 19, 2008
81 posts
3 upvotes
Toronto
Cheap Cat wrote: Every credit card does this. This is why you should always pay your bill in full and make sure you have the current balance. Some credit cards namely Amex, will also charge you interest on your following months balance if the previous month was paid late or not in full because your account is not in good standing so the interest grace period no longer applies.

If you call them and act nicely, they will waive the interest once per year.
I guess "are you f'n kidding me, well cancel the f'n card then right now" eliminates my nice guy interest credit eh?
Member
Nov 14, 2009
236 posts
55 upvotes
100% normal. If you don't pay the full balance they charge interest on the total amount that was owing, not the new balance.
Newbie
Sep 30, 2008
68 posts
Happened to me a few years back with a Capital One card. I was only short around 20 cents too. It is as per agreement though... if you don't pay IN FULL you pay interest.
Banned
Mar 4, 2009
4833 posts
277 upvotes
Toronto
LBZ351 wrote: So, February statement comes out, balance due is $7834.00 due on March 3rd.

I make a payment of 7800.00 (forgot 34.00 in error) on Feb 15th.

My march statement includes "interest" of about $108.00

I call to inquire, apparently the "Cardholder agreement" allows them to charge interest on the full 7834.00 even though I paid off like 98% of what was owing, not charge interest on the 34.00 only.

Are you f'n kidding me?
Is this true?
Anyways, I told them to shove their card and cancelled it.

I always pay off my balance in full so never gone through anything like this before, is this what other cc companies are doing to people too?

Let me know!
You could have fairly easily got them to cancel the interest charge if you could convince them it was simply an input error. However, you've probably now closed that door since you cancelled your card.
Member
User avatar
Jul 20, 2003
230 posts
13 upvotes
and any subsequent charges since the day you didn't pay in full accumulates interest right away (no 30 day grace period that you normally enjoy) since you are in default.

the rep would have been able to clearly see that you always pay in full and would have probably cancelled the interest charge if you had given him/her the chance

call back and beg for forgiveness.
Deal Addict
User avatar
Jul 4, 2005
1778 posts
100 upvotes
macdaddy wrote: and any subsequent charges since the day you didn't pay in full accumulates interest right away (no 30 day grace period that you normally enjoy) since you are in default.

the rep would have been able to clearly see that you always pay in full and would have probably cancelled the interest charge if you had given him/her the chance

call back and beg for forgiveness.
That's the part that drives me nuts! Trying to calculate the intererst on that is vertually impossible!
Deal Addict
Dec 31, 2009
1568 posts
149 upvotes
macdaddy wrote: and any subsequent charges since the day you didn't pay in full accumulates interest right away (no 30 day grace period that you normally enjoy) since you are in default.

call back and beg for forgiveness.
He's not in default. He made more than the minimum payment so how can he be in default?

But yeah, if I was the OP I'd call back. I'd be honest, say I was upset and flew off the handle. Then apologize and ask if it's too late to cancel my cancellation request.
Deal Fanatic
User avatar
Nov 23, 2005
8880 posts
5463 upvotes
Phoenix3434 wrote: That's nonsense. Follow up with the Consumer Protections guys. This is ridiculous and they are just stealing your money.
I just love it when people with 0 clue about borrowing money make statements such as this.


For all the CC noobs, interest it billed based on the average daily balance from the date your last statement printed off. If you don't pay your bill in full by the due date, its valid interest, not "BS". ;)
LBZ351 wrote:
I call to inquire, apparently the "Cardholder agreement" allows them to charge interest on the full 7834.00 even though I paid off like 98% of what was owing, not charge interest on the 34.00 only.
Why would they bill you interest on 34 only? You BORROWED over 7k during that month. If you don't pay in full you automatically lose the 'grace' period of no interest. Essentially, for the first x amount of days (from the moment your last statement printed off until you made your payment), you would have been billed on the average daily balance (including any new transactions that were not included on your statement). Then once you made your payment, avg daily balance that interest is being billed on becomes much less.

ps. Expect more interest on your next statement ;)
Member
User avatar
Jul 20, 2003
230 posts
13 upvotes
Paulfistinyourface wrote: He's not in default. He made more than the minimum payment so how can he be in default?

Sorry, default might of been the wrong word. Not sure what the term is..maybe "cash cow"? :lol: The point is, they are charging you interest right away on new purchases plus your last month's charges.. This is their favourite type of customer.
Deal Addict
User avatar
Jul 4, 2005
1778 posts
100 upvotes
angel_wing0 wrote: ..then just pay the whole bill :)
I don't think that will work. There's accrued interest that will not reflect on the "whole bill" amount.
Jr. Member
Aug 13, 2007
198 posts
17 upvotes
Montreal
It's all in the wording of the agreement. You actually do accrue interest from the day you make the purchase, but they will waive the interest if you pay your balance in full by the due date (grace period). As others have noted above, if you miss 1 cent on your payment, you automatically owe the interest from the purchase date to the bill due date, which is sometimes even after you actually made your payment if you don't wait until the last day to make your payment...

And, of course, any purchases after made after your bill will also accrue interest. You usually have to go through an entire 0$ due billing cycle for the interest cycle to be broken.

I agree that it's pretty bad and that you end up paying more interest than you thought you would, but it's all legal and explained in the agreement. They have passed new legislation in the US to reduce this, but there's nothing yet in Canada.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)