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Howdy Scott:
I am writing to you about a unique situation
that occurred about two weeks ago, and I was wondering if anyone else you know
of, and/or subscribes to your newsletter, might have had this happen to them.
I currently carry a VISA card from Compass
Bank, which is based in the southeastern portion of the US. I have had the card
for a number of years and rarely carry any sort of a continuing balance.
I decided I wanted to payoff the balance,
which at the time was approximately $48.03. I had not received my statement yet,
so I went ahead, typed up a letter, enclosed a check for the balance-in-full,
and mailed it off to Compass Bankcard's payment address in Decatur, AL.
When I checked the Compass Bank website 10 days
later, I noticed that the outstanding balance on the card was $1.00. The first
thought that came to my head was that I misfigured the amount of the payment for
balance-in-full. Upon further examination, the dollar had been billed to my
account as a payment processing fee.
I immediately contacted Compass customer
service and asked them exactly what the fee was for. The representative told me
that, since I had not enclosed the remittance portion of my statement, there was
an added $1.00 fee for processing the payment. I told the rep I was ready to
close the account, since I considered this a money grab. She went ahead and
waived the fee. I asked her to pass along a message to her supervisor that there
should never be a transaction fee for processing a payment.
Any thoughts?
John
The Twin Cities of Minnesota
John,
Wow! That is a new one! I have never experienced
this nor heard of it happening to anyone else.
I’m not surprised though. Banks will try anything
to squeeze another dollar (literally in this case) out of each customer.
You did the right thing by calling. Most people
wouldn't call for one dollar, or even notice it! You are DebtSmart! That’s why
it’s so important for everyone to carefully review their credit card statements--scrutinizing every charge and every fee.
You're right, there should not be a processing
fee for simply leaving out the remittance portion of the statement. It's not
like they didn't know who sent the check. The bank was essentially punishing you
for trying to do the right thing (paying your bill). Well, more like finding a
new way to rip you off!
There are some people that might say, “Scott, who
cares about $1? Oh well, so what.” Yes, it’s only $1, but $1 per month is $12 per
year. “So what again?” Well, 10 little oversights at $1 each, per month, is $120
per year. These seemingly small amounts can add up to a lot of cash, especially
in terms of percentage rates: for example, a difference of 1% can equate to thousands
of dollars over the life of repaying a loan.
It all adds up to one thing, and that is, more money for the bank and less money
for us. I want to keep that dollar.
I wonder if those who would say, “It’s only $1”
would simply walk past a dollar bill on the ground. Would they pick it up? You
BET! It’s the same thing.
You’re smart not to leave your dollars on the ground,
because the bank will gladly pick them up!
Best,
Scott
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Loved this article. I experienced something similar when
I ported my mortgage to a new property last summer. I
noticed that they had tacked on a $2.50 administration
charge on each biweekly payment!! 26 payments a year x 5
years = $325. Needless to say I demanded that it be
waived. Beware and protect your money, it's only going
to get worse!"
--Julie
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This article
helps to alert others about the low-down tricks the
banks are attempting even with clients who pay their
bills in a timely manner. Thank you for being here for
us to communicate with others and to learn from you."
--Velma
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This article
brought to my attention a very strange situation.
However, by mentioning that,
having paid the bill in full already, the fellow writing
the article might have just chucked the bill aside and,
with $1.00 on the account, come next month he would have
been charged a $30 or so late fee on top of the stupid
$1.00.
FYI, Love the site. You
don't just say "avoid credit" but rather use it
responsibly and to your own advantage."
--Lisa
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I loved the article but extremely upset
by it. I am sick and tired of banks trying to get over.
This is absolutely ridiculous."
--Nichole Jefferson |
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