Financial Troubles? Bend Over.

That’s the message I got the other day from a major credit card company. Is it in your wallet? Probably.
We’ve had a card with this same company for YEARS. We’ve had balances that were REALLY high, and they’ve certainly made a good amount of money from us. Our balance is down significantly now, and haven’t added to in in about a year. So, YAY us!
Anyway, since I love me some Bank of America Bill Pay, I have my BofA account receiving E-Bills for this card, and it’s scheduled to pay automatically every month. And every month, I look at my list of outgoing payments to ensure everything is kosher.
Somehow, this month, I didn’t notice that BofA had never received an E-Bill from my credit card company. So BofA was never prompted to create a payment. So my credit card payment, of $135.00, wasn’t made. AAK. I was, of course, oblivious to all of this.
Until Friday morning when a random 800 number appeared on my caller ID. And I answered it. And the person on the other line identified themselves as being from the credit card company that’s in my wallet. And then I accidentally (REALLY!) hung up on him. And was like “Oh, shit, I have no idea why they were calling.” So I did some research and realized that the payment had never been made. My online statement showed me that I was 8 days late and I had an outstanding payment due of $404.00, which was due by March 14th.
Now, when you’re period is 8 days late, it’s fairly significant. BUT, when your credit card payment is 8 days late, and you’re not usually late, you’d think it wouldn’t be that big a deal.
You’d be wrong.
The credit card company that’s in my wallet had already sent my account to collections.
F to U to the C to the K.
I immediately scheduled a regular monthly payment on THEIR website which was scheduled to post later that day. Within an hour or so my phone was ringing again and it was the handy dandy collections department of the card that’s in my wallet. I explained the situation to the woman, who didn’t seem to give a rat’s ass, and ended the call thinking the drama was over.
I was wrong.
As I sat at my desk pondering the ridiculousness of the situation it occurred to me that a $404.00 payment seemed REALLY high. I mean, my February payment should have been $135.00. Add in their $40.00 late fee and another $135.00ish payment for March and you come up with $310.00. So why did I owe $404.o0?
Because they’d increased my interest rate from 9% to 23%. After being 8 days late on my payment. TWENTY-THREE PERCENT! Are you fucking kidding me?
So, I immediately called them back and demanded that they reduce my interest rate. To which they responded, “You need to discuss this with a different department” and then promptly disconnected me. So I called BACK. And spoke to the correct department.
Which is when I learned that regardless of the fact that as of that evening I was going to be current, and regardless of the fact that I didn’t have a payment due until MARCH 14th, they were still unable to reduce my interest rate. I need to pay the entire $404.00 before they’d discuss adjusting my interest rate.
*Insert sound of screeching records here*
WHAT? But I’m now current. I even paid an extra $40.00 to my account. “Yes, but it hasn’t posted yet and you didn’t pay the entire amount.” Okay, so tomorrow, after it’s posted and I’m current for my February payment, I STILL can’t call back and discuss this with you because I’m not current for my March payment, which isn’t due for another three weeks? AND, I’ll have to pay the extra $100 in interest before you’ll discuss reducing my interest rate? “Precisely”.
This conversation continued for 10 minutes because I simply couldn’t wrap my brain around the fact that they were going to leave my account in collections even AFTER it was current.
Finally, just as my brain was about to explode, I said “Then I’ll just transfer my entire balance to another card” and hung up on the bitch.
And now I’m just PISSED. I’m annoyed that they’re screwing me over after being only 8 days late on a payment. I’m annoyed that they’re doing this to THOUSANDS of people across the country right now. I’m even more annoyed that most of those thousands of people ARE having financial difficulties and are late because they simply don’t have the money and not because of a technical glitch. And doubling their interest rate isn’t going to to ANYTHING to help the situation.
I’m gong to call Capital One and fight this. I’m going to be an annoying pain in the ass until they reduce my interest rate and credit me back the extra interest charged to my account. And then I’m going to redeem my rewards, transfer the balance and cancel the card. Screw them.
Capital One will NOT be in my wallet in the near future. Or ever again.
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Insta-Mom on 22 Feb 2009 at 8:52 am #
We had a similar problem with Chase. They weren’t sending e-bills, I wasn’t catching that it wasn’t being paid (God forbid I have other issues and not check my bank account every moment), blah, blah, blah…here’s your absurd interest rate for our mistake.
They called us as many as four times a day, even when we were current (we were never more than a week or so late). And even when I explained to them the DAY AFTER CHRISTMAS that it was our day to celebrate Christmas with my stepson and it was a holiday and I’d appreciate the day off from the phone calls, they called twice more.
We transfered the balance to BofA which was (and still is, I think) doing a 0% on balance transfers. So even though we had to pay the transfer fee, it’s less than we would have paid taking it in the ass with the interest rate with Chase, who was totally unwilling to work with us.
Insta-Moms last blog post..It’s about the babies
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Heather @ Domestic Extraordinaire on 22 Feb 2009 at 9:37 am #
Good for you for standing up for yourself. So many people just bend over and take it because they don’t understand that they shouldn’t take it, that there are probably other options out there.
And just FYI-you don’t have to get phone calls from any company you are in collections with our otherwise. You can send them a certified letter stating that they are not allowed to call you and all correspondences should be done via mail or whatever you prefer (there might be an online option now as well) I just know this because of the fact that my mom works in collections for another main company & we were getting calls for a bill that was late but already paid & the collection company was trying to get us to pay them even though we had already paid our creditor!!
Sorry this got long winded. But your post really spoke to me.
Heather @ Domestic Extraordinaires last blog post..Haiku Friday: Help Save a Baby Edition
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jane on 22 Feb 2009 at 10:41 am #
my husband has a card with them and has been planning on canceling, and we definitely will now.
here’s the other thing credit cards are doing right now…pay off your balance, credit line gets cut. seems counter-intuitive, right? they’re just trying to reduce credit lines so they don’t have to lend money out.
WHERE IS THE BAIL-OUT MONEY FOR ALL THESE BANKS GOING?!?! Not in our pockets, that is for sure. seriously, it’s such bs.
done venting. and I’m sorry you had to go through this nightmare.
janes last blog post..Week 109 Menu
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anymommy on 22 Feb 2009 at 11:43 am #
That is outrageous. I’m pissed for you. I hope you were able to transfer everything and leave them behind.
We had a similar ridiculous situation with BoA’s mortgage arm. An automatic payment (from a BoA! Bank! Account!) didn’t go through for some reason, we missed it for a few weeks and the mortgage division suddenly took three payments at once. Because we’d missed one?! And then paid it?! Without telling us?! Which, of course, wreaked havoc on all the other transactions from that account because, huh, we don’t have enough cash monthly to cover three mortgage payments and all other bills.
Oh, also, while we were overseas I was sent to collections for a fifteen dollar co-pay at my kids’ pediatrician’s office. Admittedly three months late, but I’ve been going there for three years without missing a single payment.
Yeah, okay, you might have hit a nerve here
anymommys last blog post..Golden Child
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Jasmine on 22 Feb 2009 at 2:46 pm #
Uggghhhhh, INFURIATING! I feel like I’ve wasted half my life on the phone with credit card/banking/identity theft bullshit. I’m hoping for you that once your account is in the clear, you can talk to someone with sense who will reverse some of those fees (almost always works for me when I threaten to close the account, altough who knows with Capital One and current… blah, you know) and THEN you can close the account. Pbbbtt.
Jasmines last blog post..Matt and Monica + 3
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Heather on 22 Feb 2009 at 3:32 pm #
The one thing that doesn’t make sense to me is how they could legally compel you to pay any bill that is not yet due. In any case, I think your best recourse is to document every call and contact you have with the collections agency and the credit card company, and go for the Executive E-mail Carpet Bomb. Almost never fails.
Heathers last blog post..At least the nice ER doctor told me “Happy Birthday”
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Denise @ EatPlaylove on 22 Feb 2009 at 3:55 pm #
I would transfer my balance to a new 0% interest credit card. F! them! We have a credit card with our credit union and I have never paid a late fee, even if I space my due date by a few days. Is that an option to transfer your balance to your personal bank, where you may have an upper hand.
Banks suck. They must need that money to pay for some junket to the 4 Seasons in Tahiti.
Denise @ EatPlayloves last blog post..Glimpse Into The Photo Shoot!
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PsychMamma on 22 Feb 2009 at 4:53 pm #
Ugh. SOOO sympathizing with you! Except, instead of a credit card company, my very similar hassles have been with health insurance companies. Dealing with issues like this is just so infuriating. I hope your situation is ironed out soon and that it doesn’t put you in a bad mood for a week like it does me. Sigh.
PsychMammas last blog post..Success
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Luckily Heather on 23 Feb 2009 at 8:24 am #
Capital One sent out a big mailing about how they’ve reveiwed people’s accounts and were raising our interest rate to 23% effective 3/17 and you could call this number if you don’t want to accept the changes and cancel you card. So I called thinking that once i threatened to cancel my card they might offer me something lower. NO! You don’t even get to speak to a real person to cancel your card anymore. You just get an automated system and you card is cancelled. What happened to customer loyalty being something companies were after?
Luckily Heathers last blog post..1/4 of a good hair day
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Susan on 23 Feb 2009 at 9:41 am #
I am livid for you just from reading that. TRANSFER THE BALANCE! I agree, F them.
Susans last blog post..What day?
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christy on 23 Feb 2009 at 11:46 am #
I had this same exact problem a few months ago. However, Discover did reduce my interest rate for 25% to 12% when I called to complain.
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Maura on 23 Feb 2009 at 12:58 pm #
I had the same problem with BofA not getting the bill from Capital One last month. I get the bills online but I don’t have them pay automatically so that I have to sign on and see what’s going on, otherwise this same thing would’ve happened to me.
When I went to BofA, they’d sent me a message saying they couldn’t get the bill from Capital One & I needed to go to the Capital One site to fix it. The stupid site just wanted me to update my security questions! They wouldn’t send a bill for that? I was surprised, but I fixed it, let BofA know and it got sent and paid on time.
I don’t think we should have to put up with this shit just because other people have made a complete mess of their credit — granted, sometimes it can’t be avoided, but sometimes it can — and people get punished for one-time things like this.
I paid off my Capital One card a couple years ago and since then they’ve been trying to get me to use it more. I’m not going to cancel it because I don’t want to reduce the amount of my available credit in the eyes of other lenders, but I’m going to stop using it. I don’t even use the stupid rewards.
I’m sure they’ll eventually send me another enticement to use their card and I’m going to tell them that I won’t because I don’t like the way they’re treating good customers.
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Suzanne on 23 Feb 2009 at 6:19 pm #
You know, I hear of these nightmare stories from people and their credit cards. I gotta stand up for one cc provider. Wells Fargo has been our bank for almost 10 years now, and we have on occasion been late (gasp) with our payment. As long as it’s not more than once a year or so, they have ALWAYS reversed the late fee, apologized for my inconvenience and been very nice. The interest rate has never been raised, and we are very happy with their level of customer service. I don’t even work for WF, but I wanted to let you know – you might want to switch to WF and see if you get better service. I always have!! Sorry for your nightmare – collections people are the WORST!!
Suzannes last blog post..On not getting a job today
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Issa on 23 Feb 2009 at 6:57 pm #
I just got something saying they were raising my rates for no reason. I think they suck. Must be going under or something.
Issas last blog post..Friend’s don’t let friend’s go to play dates
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Joe on 23 Feb 2009 at 7:06 pm #
When you call them back, tell them that you’ll be posting your story to the Consumerist website (http://consumerist.com/), then do so. The LAST thing any bank or creditor needs is bad publicity.
Or, you can call them back and tell them you want to close your accoun t (they may tell you that you can’t do so until your account is paid off, and I can’t remember if that’s true or not). Sometimes they’ll transfer you to their “retention” department, and that’s when they may start making deals.
In the end, do you really want to give them your finance charges every month now that you know how they treat people. You’re probably best off transferring your balance to another card and closing your account.
Good luck.
Joes last blog post..Suck On This – Part II
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Z on 24 Feb 2009 at 6:01 am #
Um, UGH. That just SUCKS! I’ve had similar things happen (late due to technical glitches, once in the distant past -ie before online bill pay – a lost payment in the mail) and it’s ALWAYS been easy to deal with and they’ve been reasonable on their end… Of course, that was before all of this economic crisis crap, so, if it happened again now? Who knows… I am so sorry this happened, and agree that it is total bullshit. WTF indeed.
Zs last blog post..bwahaha
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Barbara on 09 Sep 2009 at 6:39 am #
I just came across your blog and this post on credit card companies just got me flared up.
I used to have this problem quite a lot when I had credit cards (which are all now long gone thank heavens), and I remember how intimidated I used to feel when they started on with their well rehearsed scripts.
Now I tell people in similar circumstances not to get intimidated and to use similar tactics back by threatening to complain to the credit card control governing authority and consumer affairs.
For anyone with a large credit card debt you can actually call the credit card co. and tell them that one of their competitors has offered you a reduction of (whatever % decrease is in-keeping with what others are offering… research that first) and that whilst it’s attractive you thought you’d call them first before you take up the other company’s offer. You’ll find they usually always will grant you the lower rate that you sought,.. or at least one that’s better than your current rate.
Barbara´s last blog ..How to Get a Better Job
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