Entries in Late Fees (2)


Bank of America Raising Penalty Rate for Late Payments

ABC News(NEW YORK) -- It's never been more important to pay your credit card bills on time.

Being just one day late on your payments can be very expensive and now, it could even be costlier.  Bank of America is expected to raise its maximum penalty rate this week -- a move that is becoming part of a trend.

Explaining Bank of America's new policy, Adam Levin with says, "If you're more than one day late on a payment they have the option, if they want to, to raise your rate to 29.99 percent as a penalty rate."

The hiked up penalty rate would apply to future purchases, not on what you already owe.

If you want to avoid paying more, switch your credit card account to another bank.

"You can also go to credit unions and smaller banks.  So it's not like you don't have options," Levin says.

Copyright 2011 ABC News Radio


Avoid Late Fees by Challenging Them

Comstock/Thinkstock(NEW YORK) -- If you forget to pay your credit card bill on time you could be hit with a stiff fee and have to pay higher interest rates on future purchases.

But it may be easier than you think to get those late charges reversed.

You can get hit with a late fee virtually anywhere: "At your bank, at your credit card, even random places like your gym -- basically anywhere where you are doing regular financial transactions," says personal financial advisor Ramit Sethi.

And if you do, politely challenge it, advises Sethi.

"If you're always incurring late fees you may have trouble negotiating it but if you're just a great customer and you have one or two time mistake you can easily get those fees waived," he says.

"Most people don't realize these companies want to keep you," Sethi adds. "They spend hundreds or even over a thousand dollars to acquire you as a customer."

Just make sure to call up as soon as you find out about the late charge.

Copyright 2011 ABC News Radio

ABC News Radio