2 questions about credit card laws

[ceejay74]

Hi there,

I have a friend who transferred some debt from one CC to another for a temporary low interest rate. Unfortunately she also made some purchases on the new card, and those are being charged the higher interest rate.

She wants to transfer the portion of the balance with the higher interest rate to another card that has a low introductory interest rate. But when she called the CC company, two things happened that bothered her.

1. They wouldn't tell her how much of her current balance is on the lower rate and how much is on the higher rate.
2. They said she couldn't transfer just the higher-interest portion.

Both of these things seem to go against the spirit of the Credit Card act, but I must admit I can't find these two things spelled out as rights for the cardholder. Are these two loopholes that the CC companies still have?

[Nutria]

Unfortunately she also made some purchases on the new card, and those are being charged the higher interest rate.

So that she can learn from her mistake: why did she have those cards out and available for accidental use instead of tucked away in the back of her desk (which is why you tuck them away in the back of the desk)?

1. They wouldn't tell her how much of her current balance is on the lower rate and how much is on the higher rate.

That's bizarre, but can't she look online at her purchase history? All that should be there is the balance transfer and the new, accidental purchases. (Right??)

2. They said she couldn't transfer just the higher-interest portion.

Both of these things seem to go against the spirit of the Credit Card act, but I must admit I can't find these two things spelled out as rights for the cardholder. Are these two loopholes that the CC companies still have?

IIRC, banks apply payments strictly by age: oldest first.

[ceejay74]

So that she can learn from her mistake: why did she have those cards out and available for accidental use instead of tucked away in the back of her desk (which is why you tuck them away in the back of the desk)?

IIRC, banks apply payments strictly by age: oldest first.

I know; I'm disappointed in her because I warned her about that when I was helping her. She knows it was the wrong thing to do. But it's too late to do anything but try and help her get out of that higher interest rate.

I thought the new credit card law says payments always go to the highest interest rate balance first. I found that confirmed on several sites. But I wasn't sure if balance transfers counted as payments.

[ceejay74]

So that she can learn from her mistake:
That's bizarre, but can't she look online at her purchase history? All that should be there is the balance transfer and the new, accidental purchases. (Right??)

I'm not sure when she made the purchases so I'm thinking she doesn't know how much of them has been paid off vs. how much of the original balance transfer has been paid off. She says her statement is not clear about that.

[Nutria]

I know; I'm disappointed in her because I warned her about that when I was helping her. She knows it was the wrong thing to do. But it's too late to do anything but try and help her get out of that higher interest rate.

What can you do to get her out of her mess?

I thought the new credit card law says payments always go to the highest interest rate balance first. I found that confirmed on several sites. But I wasn't sure if balance transfers counted as payments.

Hmm. Good point.

[Nutria]

I'm not sure when she made the purchases

I get the sneaky suspicion that she made more than "some purchases" on that card. More like "a lot of purchases"?

so I'm thinking she doesn't know how much of them has been paid off vs. how much of the original balance transfer has been paid off. She says her statement is not clear about that.

smh.

Some problems can't be solved without time and pain.

[Jovanny]

How can a company deny imparting information for the customer’s transactions? She can try calling the company once again or seek legal assistance.

[Nutria]

How can a company deny imparting information for the customer’s transactions?

Unless the call was on speakerphone, ceejay74's information is second hand. Maybe there were so many charges, and the Customer Service Representative's computer program designed in such a way, that the CSR couldn't say because she just didn't know.