No good deed goes unpunished. And no bank overlooks any opportunity to rake in fees. Who cares if the customer is left high and dry?
I'm moving fast towards the "big banks will get my tax money over my cold, dead body" side of the aisle. Why?
I have two savings accounts, one checking account and a VISA at one of the largest banks in the country. I won't mention the name since I don't want its lawyers dragging me into court for saying rude things that might offend the delicate sensibilities of their client. (Of course, it wouldn't matter that what I said was true; they'd keep me in litigation just long enough to bankrupt me.)
I've had these accounts for years. I've paid on time. My big mistake was to do what many people are trying to do these days, pay down my credit card debt.
I paid $20 or so on an $18 bill due the middle of January. Having a little extra money a few days later, I went to my local branch on January 23 and paid $70 on the card. I thought that would count on the February bill.
Nope. It was credited to the January bill.
Having paid an extra $70, I didn't make my $14 February payment. The next thing I know, I've got a March bill that tells me I'm $17 past due, they're hitting me with a $39 late payment and threatening to raise my APR if I dare to do it again within a 12 month period. (For those of you who don't know, "default" APRs can run 30%...or higher.)
I was damn annoyed, but not really furious. Here's what made me furious.
I tried today to use the card to renew a domain name, the second domain name I've renewed in the last week. To my astonishment, there was a note on my account page that said that the earlier payment hadn't gone through.
I checked my credit card info with this company. All correct. I tried to pay for both domain names. "Transaction will not process."
I tried calling the Customer Service Number on the back of my VISA card. Automated Hell; no option to talk to a real human being, though the computer voice did cheefully tell me that if I wanted to end the call I should "Hang up." (Gee, I never would have thought of that.)
Can you see where this is going? I headed back down to my local FatCat Bank branch and on the way, just to make sure it wasn't a problem with the domain company, I tried to buy a soda with my credit card. (I very rarely use credit cards for day-to-day purchases.)
Well, well...."Payment refused." The first time in my life that I've had my credit card rejected.
My credit card was frozen. It had been at least two days since I'd used it to pay for that first domain renewal, so FatCat Bank had frozen my credit card a minimum of two days ago.
Down at the branch, they got me on the phone with the national FatCat Bank credit department. I managed, without use of profanity, to ask the bank if it was their policy to freeze credit cards that were $17 in arrears.
Oh, yes. According to the credit manager, if you are one day late paying your credit card, your card will be frozen.
One...day...late.
So....if you get hit by a car and don't mail that payment, but you need your card for medical expenses, tough. If your child gets sick and you forget the payment, but need the card desperately, who cares? If you're traveling and send in an extra prepayment so that you can travel without worrying, too damn bad if you pay before that month's billing period closes. (You can't even figure out when the billing period is, because it changes from month to month.)It doesn't matter how much extra you pay, or how many years you've paid on time, they are ready and waiting to freeze that card.
Could it get more insane? Of course it could!...if I were to pay that $17 at the branch right then and there, it would be two days before my credit card was usable. The credit manager was willing to do if for me immediately, which would make the card usable tomorrow morning, but there would be a $15 charge.
After listening to the sound of my grinding teeth, he said he'd waive the $15 fee.
But--what a way to make more profit! $39 for a late payment, plus another $15 if you desparately need that card now. No grace period, no email notification, just a credit card that's suddenly not worth the plastic it's printed on.
That's their policy. Take it or lump it. But, God forbid we taxpayers should attach a few strings to the billions we are handing over to them.
I am going to close my accounts with this bank. I am going to pay off that credit card--not completely, nor will I close down that account, since that could adversely affect my credit rating, but I'll drop the balance to say, $20, just low enough so they earn nothing on it and they have to keep up with the expense of sending me statements.
And when the bankers start complaining because we're angry about their fat salaries, their fat bonuses and their $100,000+ parties, I'm going to contact every politician I know and say, "They don't like my policies, they don't get my money. Period!"