Personal Finance

Woodbridge Man score tanks over $0.95 bill - CTV news.

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  • Jan 29th, 2020 5:14 pm
[OP]
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Dec 12, 2009
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Woodbridge Man score tanks over $0.95 bill - CTV news.

Will post link to video when available.
ON EDIT: Link now up: https://toronto.ctvnews.ca/old-credit-c ... -1.4787618

Pat Foran did a piece tonight on a guy that didn't realize he had an outstanding charge on a credit card they cancelled.
They found out when they were declined for a mortgage..
TL;DW
Guy cancels card last year. $0.95 service charge happens. Guy applies for mortgage & is denied because of low score & derog on file. Guy goes to CTV. CC reverses charge & derog. Guy happy.

Moral of story. Watch your bills & monitor your credit reports.
Last edited by ROYinTO on Jan 28th, 2020 7:41 pm, edited 1 time in total.
Social Distancing means staying apart 2 meters or 6 feet, the depth of a grave.
Get closer and you might have one foot in the grave. (Pass it on)
19 replies
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Dec 5, 2006
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ROYinTO wrote: Will post link to video when available.

Pat Foran did a piece tonight on a guy that didn't realize he had an outstanding charge on a credit card they cancelled.
They found out when they were declined for a mortgage..
TL;DW
Guy cancels card last year. $0.95 service charge happens. Guy applies for mortgage & is denied because of low score & derog on file. Guy goes to CTV. CC reverses charge & derog. Guy happy.

Moral of story. Watch your bills & monitor your credit reports.
Which company? Usually banks don't report small amount like below 10 dollars
[OP]
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smartie wrote: Which company? Usually banks don't report small amount like below 10 dollars
Home Trust.
Quote from article:
Frano said in 2017 and 2018 he travelled overseas to Europe and that’s when he took out a credit card with Home Trust because it was a card with no foreign currency conversion surcharges.
Social Distancing means staying apart 2 meters or 6 feet, the depth of a grave.
Get closer and you might have one foot in the grave. (Pass it on)
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ROYinTO wrote: Home Trust.
Quote from article:
Thanks

I would only take amex to overseas
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UrbanPoet wrote: Couldn't the mortgage lender just mitigate that part of the application?
They cannot. Because they don't know whether low score is only due to that 95 cents. And they don't know what his score look like after removal that card

But the question is why he didn't get statements on 95 cents. Technically companies should still send you bill even you close the cards as far as you owe balance
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smartie wrote: I would only take amex to overseas
Amex? The card with the low acceptance, double exchange charges for purchases not in CAD or USD, and 2.5% FX markup on top of that? Really?
Amex is great for spending at home to earn travel points. But while traveling, I leave it at home.
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Dec 21, 2013
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This kinds of stuff happens quite often. Ages ago when i worked at Visa, I would get a client calling in for the exact reasons as in this article.

Typical Scenario:

Former client who had been carrying a balance with interest finally pays it off as per their statement and cut up the card/closed the account. However, there were advised there was a few days worth of interest accumulating from the day the statement generated to when they "paid it off in full" so they would receive another statement with those few days worth of interest (called "trailing interest"). They would either ignore it, or call in frantically to rebuke that interest charge as they "paid it off per the last stmt you greedy mf-ers!!!".

Every so often I'd get a frantic call from people who ignored that last statement and had since moved; never updating the bank with their new address since they figured the account was closed. Years later their credit was in shambles and they just traced it back to that card/bank. This happened a lot when they did a debt consolidation and the new bank/financier had paid off their existing balances per the previous statements.

The bank's hands are kind of tied as the debt was legitimate; It was always a tough call. I'd try and pawn them off to a manager or the credit department as there was absolutely no tools for regular client service people to do anything about it.
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I had something similar happen with an old Chase card. I paid it off and cancelled it over the phone, but the phone guy forgot to actually cancel it. 3 years later I get something in the mail about an unpaid balance of a few bucks. I call in and discover that the $0 balance had an 'inactivity fee' applied to it, which they were then mailing me about. The guy on the phone cancelled it and made sure the card was finally closed, and that was the end of it (hopefully).
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smartie wrote: They cannot. Because they don't know whether low score is only due to that 95 cents. And they don't know what his score look like after removal that card

But the question is why he didn't get statements on 95 cents. Technically companies should still send you bill even you close the cards as far as you owe balance
I agree.
I have 26 cents credit with Rogers and they are sending me bill for at least 5 years. month after month. That person should have got bill for few months.
Also the company is dick for creating such big fuss over $.095
I dont care about Ethics, morals, rules or laws. I will apologies only when I get caught.
I try not to apologies but sometimes do it. not because its right thing but it benefits me.
New Mantra for idiots Just ask RFD before searching answers anywhere.
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ROYinTO wrote: Home Trust.
Quote from article:
Funny thing is now he will need a subprime mortgage lender due to his credit score....and Home Trust is a big sub prime mortgage lender Face With Tears Of JoyFace With Tears Of JoyFace With Tears Of Joy
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
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georgecantstandya wrote: This kinds of stuff happens quite often. Ages ago when i worked at Visa, I would get a client calling in for the exact reasons as in this article.

Typical Scenario:

Former client who had been carrying a balance with interest finally pays it off as per their statement and cut up the card/closed the account. However, there were advised there was a few days worth of interest accumulating from the day the statement generated to when they "paid it off in full" so they would receive another statement with those few days worth of interest (called "trailing interest"). They would either ignore it, or call in frantically to rebuke that interest charge as they "paid it off per the last stmt you greedy mf-ers!!!".

Every so often I'd get a frantic call from people who ignored that last statement and had since moved; never updating the bank with their new address since they figured the account was closed. Years later their credit was in shambles and they just traced it back to that card/bank. This happened a lot when they did a debt consolidation and the new bank/financier had paid off their existing balances per the previous statements.

The bank's hands are kind of tied as the debt was legitimate; It was always a tough call. I'd try and pawn them off to a manager or the credit department as there was absolutely no tools for regular client service people to do anything about it.
Wow, this is so good to know.

So the guy had a balance in his CC. He eventually paid it off as per the last statement. BUT, he failed to realize that the interest has still accrued from the last statement date and the date he paid. Clearly, the interest is low ($0.95) but the guy failed to realize it.

He then closed the account. But the account should never have closed as there was still a balance owing. Right?
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TuxedoBlack wrote: He then closed the account. But the account should never have closed as there was still a balance owing. Right?
Credit cards can be closed with a balance owing. The card becomes inactive with for any new charges, but any existing balance remains and continues to accrue interest. It basically becomes a very high interest loan.
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Rishi wrote: Credit cards can be closed with a balance owing. The card becomes inactive with for any new charges, but any existing balance remains and continues to accrue interest. It basically becomes a very high interest loan.
Wow. This is news to me and I'm sure many others.
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It's really that simple.

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