BofA VISA: Merchant Credit Does Not Subsitute for Minimum Payment
Nov 27, 2004, 2:14 am
#1
Original Poster
Join Date: May 2002
Location: Sacramento, CA, US
Posts: 2,229
BofA VISA: Merchant Credit Does Not Subsitute for Minimum Payment
OK, so I have the AS Signature VISA from B of A. Normally I do not maintain an outstanding balance, but recently I took advantage of a 0%/no fees cash advance offer. The minimum monthly payment is $10 on a balance of about $3700.
Last month, a merchant posted a credit of $300 to this account to reflect a lower price on an item charged to the card.
Since the $300 was much in excess of the $10 minimum payment, I figured I was covered.
Wrong!
A "failure to make minimum required payment fee" of $39 was assessed after the closing date.
I called B of A and requested removal of the fee. They clarified that the minimum payment is still required. But they indicated that no minimum payment would be due if a merchant credit zeroed out the outstanding balance. How's that for consistency!
But they agreed to remove the $39 fee, which is the most important thing.
On a related note, I am not using this card to charge anything while the 0% cash advance remains outstanding, due to another strange policy under which they apply payments to the cash advance rather than to purchases, resulting in interest accruing on the purchase amounts. So, B of A earns nothing on the 0% cash advance, and they earn nothing from potential merchant fees since I'm (temporarily) not using the card for purchases. Maybe they think people only have one card?
Last month, a merchant posted a credit of $300 to this account to reflect a lower price on an item charged to the card.
Since the $300 was much in excess of the $10 minimum payment, I figured I was covered.
Wrong!
A "failure to make minimum required payment fee" of $39 was assessed after the closing date.
I called B of A and requested removal of the fee. They clarified that the minimum payment is still required. But they indicated that no minimum payment would be due if a merchant credit zeroed out the outstanding balance. How's that for consistency!
But they agreed to remove the $39 fee, which is the most important thing.
On a related note, I am not using this card to charge anything while the 0% cash advance remains outstanding, due to another strange policy under which they apply payments to the cash advance rather than to purchases, resulting in interest accruing on the purchase amounts. So, B of A earns nothing on the 0% cash advance, and they earn nothing from potential merchant fees since I'm (temporarily) not using the card for purchases. Maybe they think people only have one card?
Nov 27, 2004, 1:38 pm
#2
Join Date: Jul 2001
Location: Near Pittsburgh, Pennsylvania, USA, Earth (PIT)
Programs: Airline/TSA Avoidance Platinum, Hotel Disloyalty Silver, Hertz 1.7*
Posts: 5,277
The deal about a credit not being equivalent to making a minimum payment is lame, but I'm not that surprised. They'll do anything to charge a fee these days. For instance, your payment must be received by noon or 1pm on the due date (for some issuers) or else it's considered late. All kinds of screwy stuff like that. Another thing you discovered in this is that you shouldn't take any of these fees sitting down. If charged such a fee, call and complain about it. You won't get anywhere if you are repeatedly doing something wrong (like paying late), but an occasional fee should be waived if you are otherwise in good standing (again, varies by isssuer).
The deal with the promo interest rates is very standard. Payments are always credited to balances with the lowest interest rate first. So yes, you would get screwed if you transfer some balance to take advantage of the interest rate, then go out and make a purchase (assuming the purchase interest rate is higher, which it normally is). You're getting a free ride. But enough other people make this sort of mistake that it's still worth it to the card issuers to offer these teaser rates. Also the terms always state that they can raise the rate for late payment, etc, another thing that can trip some people up. The (sad?) truth is you are getting a free ride at the expense of those who are not as smart with their credit.
The deal with the promo interest rates is very standard. Payments are always credited to balances with the lowest interest rate first. So yes, you would get screwed if you transfer some balance to take advantage of the interest rate, then go out and make a purchase (assuming the purchase interest rate is higher, which it normally is). You're getting a free ride. But enough other people make this sort of mistake that it's still worth it to the card issuers to offer these teaser rates. Also the terms always state that they can raise the rate for late payment, etc, another thing that can trip some people up. The (sad?) truth is you are getting a free ride at the expense of those who are not as smart with their credit.