Credit Card Companies Changing Due Dates – What You Need to Know

“A heads up if you haven't seen this yet. Our VISA card moved our bill due date up by a day per month over the last 5 months. It looks like an attempt to make us late. We had to call and get it set back to where it belongs. I think listeners will need to constantly check that. Bet we aren't the only ones that had it happen. They told us something like it "increases our buying power" - an outright lie in my book.” – Prudent Money Listener

Another almost identical situation occurred with a national retailer and the due date on a deferred payment plan. Retailers have been offering all types of no deferred interest payment plans. They set you up to make a minimum payment each month. If you pay off the card during the interest deferment period, then you don’t owe the accumulated interest.

Well, this one retailer changed the due date from the original agreed upon date. In this particular case, the consumer had a 2 year deferral charge. This consumer took the total cost of the item and made the appropriate payment each month so that the total amount due would be paid before the deferral period ends. This past month which was the 16th month of the 24 month deferral period, a bill was received showing all of that deferred interest due. Somehow, the deferral period magically changed from 24 months to 16 months.

The consumer went to the retailer and disputed it. The retailer said it would investigate it and that corporate had to approve having the deferral period extended giving the consumer the ability to pay off the balance without the deferred interest.

So why would the retailer do such a thing when it is the consumer’s word against theirs? The manager replied, “It would be considered store error and that they typically correct it.” That consumer incidentally was my wife. It left me wondering….are they changing those deferral periods hoping that the customer will just pay the money?

Ironically, my wife almost had the whole thing paid off. Her balance was $200 after the payment. However, when the interest was added back, the balance turned into over $500. All I know is that they were real quick to take my word and get the problem resolved.

Due dates – you really have to be careful with your due dates on any type of loan and or credit card. I am convinced that credit card companies count on consumers having problems with due dates. They make billions of dollars on penalties as well as from charging high penalty rates.

So here are a few tips – First, always check the due date each month when you get the bill and make note of it. Send the check to the company at least 10 to 15 days prior to the due date. Most importantly, follow up a day before and make sure that the bill was actually paid. Automatic bill pay from your bank account to the company is the best way to go.

If possible, pay the bill the day you receive it. You can’t go wrong with that system.

If you buy an item on an interest deferred program, have documentation of the deferral date and put it in a file. Watch your statements closely and make sure that due date is not changing.

The credit industry is not looking out for you nor does the phrase “how can I provide you with excellent satisfaction today” mean they are going to take care of you. If you are late, you will pay.

One of the keys to avoiding problems with your finances is staying very organized. If you do not have a system set up, take care of it today.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.