Creditor surcharging me on a surcharge
Date: Fri, 11/25/2005 - 09:28
Hi
I have read some posts on the board and I have a problem with one that is mentioned here as well. I had a credit account with Capital One. I paid my bill fully every month, or if a large balance was there, I'd pay it within 3 months. I registered for online payments and bills too. I had 'earned' a few late charges some due to my own fault (comparing this company to another credit card company I deal with and forgetting they had different due dates)but I felt that some leeway could have been given. Once, I made an online payment but their cutoff time was 3pm and not the usual 5pm so I earned a late fee. My 'other' credit card company would have reversed this charge, seeing that I paid the amount in full, but not Capital One. The next time I incurred a late fee, I had gone to the website and saw a balance and paid it. I had thought I was in a new billing period but I wasn't and while I made 2 pmts that month and none the next (thereby incurring another late fee) they wouldn't reverse the charge either--even though if i'd paid that pmt 2 days later, I'd be all set. So I incurred a $29 late fee on a $10 pmt.
I paid off the card and left the late fee standing. I cut up the card and sent a letter to Capital One stating that I closed my account and felt a $29 late fee on a $10 balance (as well as my other experiences) was unjust. Not to mention, I was never notified that they had raised my rate either. My online reminders were hit and miss at best.
I received a letter from them that they would not close my account until it reached a zero balance and I would keep being charged interest AND late fees on the original late fee that was there. This started in March of 05 and my balance is now over $200. I have talked to a few reps who have called and there is no consideration on their part to resolve this. (pay it all and shut up)
I now have that lovely establishment of Encore (or is it Oncore?)calling me too. In MA (where I live) I had thought I could tell them not to call me anymore and that would be it but they keep calling me. I have called the Attorney General's office and have a form for complaint, but I am not sure if credit card companies apply to this or not.
I am wondering what my recourses are? Has my stubbornness just created a larger bill that I have to pay? Is this company acting in a proper manner by surcharging me on a surcharge? I would sincerely appreciate some advice on how to deal with this situation. I don't just want to cave because I am being bullied, but if I am totally in the wrong here, then I will do what is right.
I have read some posts on the board and I have a problem with one that is mentioned here as well. I had a credit account with Capital One. I paid my bill fully every month, or if a large balance was there, I'd pay it within 3 months. I registered for online payments and bills too. I had 'earned' a few late charges some due to my own fault (comparing this company to another credit card company I deal with and forgetting they had different due dates)but I felt that some leeway could have been given. Once, I made an online payment but their cutoff time was 3pm and not the usual 5pm so I earned a late fee. My 'other' credit card company would have reversed this charge, seeing that I paid the amount in full, but not Capital One. The next time I incurred a late fee, I had gone to the website and saw a balance and paid it. I had thought I was in a new billing period but I wasn't and while I made 2 pmts that month and none the next (thereby incurring another late fee) they wouldn't reverse the charge either--even though if i'd paid that pmt 2 days later, I'd be all set. So I incurred a $29 late fee on a $10 pmt.
I paid off the card and left the late fee standing. I cut up the card and sent a letter to Capital One stating that I closed my account and felt a $29 late fee on a $10 balance (as well as my other experiences) was unjust. Not to mention, I was never notified that they had raised my rate either. My online reminders were hit and miss at best.
I received a letter from them that they would not close my account until it reached a zero balance and I would keep being charged interest AND late fees on the original late fee that was there. This started in March of 05 and my balance is now over $200. I have talked to a few reps who have called and there is no consideration on their part to resolve this. (pay it all and shut up)
I now have that lovely establishment of Encore (or is it Oncore?)calling me too. In MA (where I live) I had thought I could tell them not to call me anymore and that would be it but they keep calling me. I have called the Attorney General's office and have a form for complaint, but I am not sure if credit card companies apply to this or not.
I am wondering what my recourses are? Has my stubbornness just created a larger bill that I have to pay? Is this company acting in a proper manner by surcharging me on a surcharge? I would sincerely appreciate some advice on how to deal with this situation. I don't just want to cave because I am being bullied, but if I am totally in the wrong here, then I will do what is right.
Hi Welcome to the forums. Credit card companies often trea
Hi
Welcome to the forums.
Credit card companies often treat their consumers so shabbily that it becomes urgent to close the credit card account. I have heard many others being in similar situations like you or even worse. Among the various bad practices done by these companies are:
- The creditors often make you pay more by not posting your payments on the actual date.
- They will trick you in to pay the late fee
- Charging you excessively for not making regular payments.
- They will even charge you for not using your card.
- The card cancellation fees are often shocking
- Penalties are charged on carrying a big balance
- The pre printed cash advance check and then attract you towards low interest
- Too many fluctuations in the rates of interest.
When you paid off the card and let the late fee standing, you should have disputed with your creditors at that very moment and get it resolved. Though you might try to contact the original creditors even now and see if the debt has been sold to the outside collection agency and about the verification of this debt, it will clear two of your important queries.
Are you still required to pay this late fee and that too increased at an alarming rate?
If the creditors are still holding this debt, you don't have to work with collection agency especially like Encore
You have the right to dispute the validity of the debt and you can even take assistance from your state or local consumer protection office or the state attorney general office.
While Encore is placing the call at your end, send a debt validation letter to them and get the actual details of the accounts. As per the federal and state laws, the collection agency is required to provide you the complete details relating to the origin of the accounts. If you can't serve you the necessary information, you have the federal right to refuse payment.
On the other side, keep in touch with your creditors and verify the status of this account. If the debt has not been sold to any outside collections, you will be more confirmed on the illegal activities of Encore with your accounts.
Do all your correspondences in written through certified mail with return receipt requested. This will leave mark of every action taken from your side.
You can also discuss with the expert for an alternative to this problem. If nothing works out and you are forced to pay, then consolidation program will help in reducing these surmounting charges.
Do let me know if I can be of any help further.
Regards
Roxette
RE: No Recourse?
I am getting phone calls from Encore (I too have caller ID and don't answer them) but a few months ago, Capital One started sending me paper statements again (each month a $29 late fee added plus interest added). I thought once a debt went to collection, it would be for a set amount. ??
I had talked to Capital One once I got my reply from them. The first person said that under no circumstance would they reverse the original late charge but they would take off the second one (at this point my balance was $59...2 late charges and $1 interest) I asked to speak to a supervisor and 'she' refused his agreement and said I had to pay the full $59 because "capital one" made the decision not to reverse the original charge. I then asked her to speak to "capital one" which flustered her a bit, and while I think I made my point, I did not win any friends.
One more question--how does one record phone calls?
Thank you for your time and information--it is very valuable!!
Quote: I thought once a debt went to collection, it would be for
Quote:
I thought once a debt went to collection, it would be for a set amount. ?? |
The creditor allows the CA to add interests which should be mentioned in the agreement deed and a copy of it will be shown to you in the debt validation letter.
I understand from your post that you are still able to negotiate with Capital One for this late fee. This shows that Encore is making illegal collection attempts because the debt is still with your creditors. You have the legal rights to continue working with your creditors. At this situation, be aware of your consumer rights that are laid down in the Fair Debt Collection Practices Act and tactfully handle Encore by not getting intimidated.
In my opinion, after negotiating with Capital One, the debt amount got reduced to one late fee instead of two. If this negotiation gets hung in between, after some time, your debt amount will rise to three late fees and you might negotiate it to two if they ignore to one. Thinking about this some time ahead, I suggest you to pay this late fee negotiated at the present instead of getting it added to two some time later. You can always try to reverse the original charges but that seems to be quite tough in doing. Do give a thought on this avenue.
Quote:
One more question--how does one record phone calls? |
You can go to any store that sells recording devices that is attached to the phone. Once you have got this recording device, you will have a recording for legal proof against Encore.