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  1. #1
    Join Date
    Jan 2009
    Posts
    1

    Default Interest Charged on a Late Fee

    My question involves collection proceedings in the State of: California

    I recently missed making a payment for the first time in about 20 years on a credit card. I paid it one week late when I realized I had missed it. I do not have a problem with paying a late charge, although I don't think it is good business practice to charge it the same day the payment is due.

    My problem is that they classified it as a "purchase" then turned around and charged me interest on that late fee. Is it legal to classify a late charge as a purchase and charge interest on it? I've been in the debt collection business for 17 years, mostly with mortgages, and I have never heard of charging interest on late charges.

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Interest Charged on a Late Fee

    What does your credit card agreement say? It is not unusual for credit card companies to do this.

  3. #3
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Interest Charged on a Late Fee

    Quote Quoting Betty3
    View Post
    What does your credit card agreement say? It is not unusual for credit card companies to do this.
    I agree with Betty3, she is correct once again. It is not unusual for interest to be charged on a late fee or anything else on the account. Once a balance is carried over, all items on the statement are subject to a finance charge.

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