swferguson Posted October 21, 2003 Report Share Posted October 21, 2003 Is it legal for the credit card companies to charge you late fees and finance charges on a closed account? Link to comment Share on other sites More sharing options...
kb9tbq Posted October 21, 2003 Report Share Posted October 21, 2003 If you have a balance remaining on the closed account, I am sure they can if you are late paying the terms. Just because you close an account does not mean you freeze the terms of the agreement. - I know a lot of people make that mistake of thinking that to be the case. Link to comment Share on other sites More sharing options...
insider Posted October 23, 2003 Report Share Posted October 23, 2003 Alot of credit card companies will not let you close an account with a balance. The finance charges are based on your revolving balance. So, even if you close your account and you revolve a balance...you are still charged a finance charge. The only time you would not be subject to fees and finance charges is if you had a 3rd party contract stating this would not be valid. Link to comment Share on other sites More sharing options...
nativechild48 Posted October 23, 2003 Report Share Posted October 23, 2003 Yes they can charge late if you are late and the acct. has a balance, and they can charge interest on the unpaid balance. It is a good idea not to close an acct. until it is paid in full cause some lenders will raise your interest rate and any available credit is no longer in the pool of the available funds Link to comment Share on other sites More sharing options...
insider Posted October 23, 2003 Report Share Posted October 23, 2003 Closing a credit card account does not have anything to do with the apr. Whether an acct is open or closed they can and will increase your apr based on several factors, such as late pymnts or pulling a credit bureau. Link to comment Share on other sites More sharing options...
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