Credit card fees can suck you in
René Rodríguez of Juana Diaz, Puerto Rico, paid late on his August credit card bill for the first time in years. A simple oversight: He misplaced his bill.
But the fees Rodríguez was hit with were hardly simple. First, Citibank charged a $39 late fee. And even though he paid his full balance, the bank dropped his interest-free grace period. Then it began charging interest, compounding daily, at a 24% annual rate.
All told, it cost him nearly $100. The policy "is perplexing," Rodríguez says. "It's probably somewhere in the contract, and whether it's fair or not, once the company puts it there, you're stuck."
But the fees Rodríguez was hit with were hardly simple. First, Citibank charged a $39 late fee. And even though he paid his full balance, the bank dropped his interest-free grace period. Then it began charging interest, compounding daily, at a 24% annual rate.
All told, it cost him nearly $100. The policy "is perplexing," Rodríguez says. "It's probably somewhere in the contract, and whether it's fair or not, once the company puts it there, you're stuck."
Read more at: Credit card fees can suck you in
posted by e-borneo.com @ 5:59 PM
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