Posts Tagged ‘late payments’

BofA sued for late fee policy

November 28, 2008

So a man goes into a Bank of America branch on the day payment is due and makes a payment which is accepted by the bank.  Guess what?  His next statement claims he didn’t pay his minimum payment in a timely manner, charges him a $39 late fee and rescinds his promotional interest rate.  Other customers have similar difficulty paying their monthly payment without incurring late fees whether through the website or by phone.

I heard a Fresh Air show awhile back about how banks monkey around with late fee dates and the like so they can aggressively charge customers these late fees.  When a customer calls and waits to talk with a customer service representative, these fees will typically be waived.  The credit card expert on Fresh Air explained that the banks know they don’t have a leg to stand on with these practices but they also know that if they make customers wait on the phone for more than twenty minutes its likely the customer will hang up and pay the fee.  These practices are calculated into the cost of doing business and it turns out (no surprise) that the banks make hefty profit margins by cheating and frustrating customers.

Complaint courtesy Courthousenews