No. of Recommendations: 0
I am mighty pissed right now. I called Fleet, get the automated yadda... "Your account has a zero balance"

My payment was due by June 12. It was credited yesterday, the 9th. Now, I have paid off MANY credit cards in my life, and every time I've paid the full balance on the statement by the due date on the statement, that's been it. No more. Paid in full.

I dial 0 for the CSR and request a letter stating the account has a zero balance. (I *have* to have this as one of my mortgage requirements) The CSR tells me I will get another bill for $71.15 for interest that has accrued. So I make a $4500 payment by the due date, and they're trying to stick me for interest.

WTF? I am shaking I am so mad. I have *never* had this happen on any other card I'm paying off, but then again, this is Fleet.


Thren
Royally Peeved
Print the post Back To Top
No. of Recommendations: 2
Re-read the finance charge portion on the back of your statement -- it sounds like they use two-cycle billing.

-A.
Print the post Back To Top
No. of Recommendations: 0
I think it depends on how the interest is calculated. If it is calculated on the date that payment is due (the 12th), then you probably do owe interest. If it is calculated on the date of payment, then you probably do not owe interest. If the $4500 number is right, then it looks like your APR is around 18.9%, right?
Print the post Back To Top
No. of Recommendations: 0
My balance on the statement was $4493.74. That's the payment I made.

I wish my interest rate was 18.9 - two years ago I asked for a goodwill adjustment on some fees, and they did credit them, but they also closed my account and jacked the interest rate up to 27%. In the past six months, it dropped to 26%.

I am looking for my statement now to see what the terms are. (lost in the mound of paper on my desk)


Thren
still not a happy camper
Print the post Back To Top
No. of Recommendations: 0
LOL at self. So much for my math.
Print the post Back To Top
No. of Recommendations: 2
My payment was due by June 12. It was credited yesterday, the 9th. Now, I have paid off MANY credit cards in my life, and every time I've paid the full balance on the statement by the due date on the statement, that's been it. No more. Paid in full.

Greetings, Thren, this sounds like a case of two-cycle billing which is all the rage now in how finance charges are calculated. Even "most-favored" Citibank uses this method because it earns the maximum in interest for the credit card companies.

In two-cycle billing, you owe interest for every day you have a balance that you have not paid off by the PRIOR due date. So if your due date was June 12 and your PRIOR due date was May 12, that extra interest was calculated on your average daily balance between May 12 and June 9 (when they credited your account for the payment). Stinks, eh?

The way to avoid (or reduce) one of these "tail-end" finance charges is to pay the maximum possible against your balance as early in the cycle as possible. So if you were paying off $4500, ideally you would want to do this on day 1 of the new cycle (say May 13-June 12) which would be closer to May 13 than early June. That would keep your average daily balance from cycle start to final payoff as low as possible. Actually, if you are carrying a balance on ANY card which uses the two-cycle balance method - and most of them now do - it is always to your advantage to make ANY payment (not just the payoff payment) as early in the cycle as you can manage just for this reason.

I have sometimes had success with getting the credit card company to drop that annoying extra interest owed but generally when the amount is small (say under $5). You could ask Fleet to wipe out this extra lingering interest but for most companies, this stick-it-to-ya last finance charge insult is their equivalent of the screen door hitting you on the @$$ on your way out, because you are GONE, baby!

xraymd

Print the post Back To Top
No. of Recommendations: 4
Fleet consistently ranks among the least-favorite cards among consumers who rank them at CardOffers.com (a neato-torpedo site).

Here's a direct link to the cardholder reviews section (definitely worth checking out, but beware... don't go here unless you have some time to browse because it's addictive):
http://www.cardoffers.com

Finally, here's a direct link to the LEAST FAVORED cards... Notice how many times "Fleet" appears on this list -- it's amazing:
http://www.cardoffers.com/reviews/cardholders/_cardratings/leastfav.asp

Just for balance, here's a direct link to the MOST FAVORED cards (note that Fleet ain't among them, lol):
http://www.cardoffers.com/reviews/cardholders/_cardratings/mostfav.asp

Enjoy. :)

Doc
Print the post Back To Top
No. of Recommendations: 1
[i] two-cycle billing, you owe interest for every day you have a balance that you have not paid off by the PRIOR due date. So if your due date was June 12 and your PRIOR due date was May 12, that extra interest was calculated on your average daily balance between May 12 and June 9 (when they credited your account for the payment). "[/]

Yep, that's what the little Fleet bimbo told me. God these guys are crooks.

Print the post Back To Top
No. of Recommendations: 1
WHOA............I've got two stars now! Woohoo!
Print the post Back To Top
No. of Recommendations: 3
Yep, that's what the little Fleet bimbo told me. God these guys are crooks.


While the interest due at the end of a payoff is annoying, 2 cycle billing is NOT theft. Something most people fail to realize is that while you are running up your balance you pay LESS interest and while you are paying it down you pay a little MORE interest. It all comes out pretty much even in the end.

d
Print the post Back To Top
No. of Recommendations: 0
"It all comes out pretty much even in the end."

The only thing I can figure is maybe you lose a grace period at the end.
2-cycle billing generates so much ill will (see this original post, and there have been many others like it) that it seems to me it would be in the best interest of the card companies to abandon the whole thing.
Best wishes, Chris
Print the post Back To Top
No. of Recommendations: 1
While the interest due at the end of a payoff is annoying, 2 cycle billing is NOT theft.

It is to me. So what happens on Friday when I go to make my $71.15 interest payment? Will I accrue interest on it too? Am I going to get told "you owe us $2.30 interest on your interest"?


Thren
sounding a little more like Tweak from South park
Print the post Back To Top
No. of Recommendations: 1
sounding a little more like Tweak from South park

Step 1: Collect underpants.

Step 2: ???????????????

Step 3: Profit.
Print the post Back To Top
No. of Recommendations: 0
So what happens on Friday when I go to make my $71.15 interest payment? Will I accrue interest on it too? Am I going to get told "you owe us $2.30 interest on your interest"?

Greetings, Thren, with Fleet it seems anything is possible but in general, the hangover finance charge is not considered to be part of your interest-generating balance and should not generate interest on the interest. So long as you pay this ultimate balance by its due date, you should be done and Fleet is outofhere!

xraymd
Print the post Back To Top
No. of Recommendations: 0
Fleet's collected enough of my underpants Frissy. They will get no more profit from me.

Thren
who's had too many cups of tweak's coffee....like the fresh morning dew on a sunrise.
Print the post Back To Top
No. of Recommendations: 1
Wait a minute, I thought you do pay interest on interest. That's what is meant by the term "compounding interest." xraymd, this is a pleasant surprise to hear that Fleet doesn't compound interest when using their credit cards.

Doc
Print the post Back To Top
No. of Recommendations: 2
Wait a minute, I thought you do pay interest on interest. That's what is meant by the term "compounding interest." xraymd, this is a pleasant surprise to hear that Fleet doesn't compound interest when using their credit cards.

Greetings, Doc, be careful here - I am not a Fleet account holder. What I was saying about "no interest on interest" has ONLY applied to the interest that gets generated on the average daily balance in the cycle of the FINAL payoff. And this is for other credit card companies I have carried a balance with (like Citibank or Universal Card or MBNA). All bets may be off with Fleet. Beware!

xraymd
Print the post Back To Top
No. of Recommendations: 1
Yep, that's what the little Fleet bimbo told me. God these guys are crooks.


While the interest due at the end of a payoff is annoying, 2 cycle billing is NOT theft.



True, but they are still crooks for any number of other reasons. I won't repeat my Fleet rant (it has to do with how all of my payments arrived "late", even when I sent them waaayyy ahead), but they are just evil.

Evil, evil, evil.

-brad
Print the post Back To Top
No. of Recommendations: 0
Egads, Discover just pulled the same thing on me this last month.

Last month I payed Discover $6910.52. Payment in full. BT'd $2k and broke every piggy bank in the house to pay the rest. Did the happy dance and everything.

Then the new statement appears in the mail. I *RIP* open the envelope so D*!M anxious to see that beautiful "Balance due: $0.00."

Cripes. $60-some-odd. Finance charge on balance from last invoice to payment date.

Most upsetting.

Discover.

Floatin
Print the post Back To Top
No. of Recommendations: 2
Yep, that's what the little Fleet bimbo told me. God these guys are crooks.

I know people get upset but that CSR is a person who is doing her job and doesn't deserve to be called bimbo.

And just because a company uses 2-month billing cycle and you didn't read the paperwork doesn't make them crooks.
Print the post Back To Top
Advertisement