Thursday, October 16, 2008

Credit Card Horror Story

A friend told me a cautionary tale:

He had a credit card on which he carried a significant balance at an introductory rate. That card was bought by Bank of America, the bank he uses for his personal and business banking. When his mail came, he stacked the B of A envelopes and didn't open them immediately, thinking they were only bank statements.

Au contraire. His oversight cost him $200 in late fees. He said that was a one-time fee and not accrued late fees over several statements. (I find that shocking--even for B of A--but it's what he said.) They also jacked up his rate.

He placed a phone call to the bank and they returned his rate back to the introductory one, but the whole experience cost him--by his estimate--several hundred dollars and a lot of stress.

Moral of the story? Open all of your mail promptly, just in case. And work on liberating yourself from credit cards.

I would also advise being aggressive about pursuing a refund in situations like this. This has happened to me a few times in my life--particularly during times of transition when my statements didn't catch up a a move in time, or when i lived with roommates and a statement got misplaced in our group mail experience. In almost all cases, the fee was reduced or removed.

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