Discover Card
Minimum Payment Due Raised Above Autopay, Triggering Late Fees

I pay off my Discover card every month. In fact, I more than pay it off, because I have an additional automatic payment of $40 that goes to them every month, in order to cover the minimum payment due in case I'm late with my full payment. Then I at least don't get hit with late fees (though I still end up paying interest, but I figure, my bad for being late, I'll pay some interest without complaining, I just don't want to see those outrageous late fees that credit card companies level.).

For the past couple of months I've been seeing late fees on my Discover card, even though the $40 payment was there in time. First $19.00 then $35.00, twice. I finally got around to calling to ask what gives.

Well, my "minimum payment due" in those months was more than $40, so even though my $40 got there on time, it didn't meet the minimum payment due, so I got charged late fees. $19.00 for the first time and then $35.00 because it happened more than once. So, I asked, why has the minimum payment due gone up from $40? Answer: the minimum payment due is calculated on the total bill. Forty dollars or two percent of the total, whichever is greater. I looked at my bill. Excuse me, I asked, how is my minimum payment due of $62.00 two percent of my total bill of $457?!! Oh, we'll take care of that, she said, hastily. We'll reset your minimum payment to $40, return your interest rate to what it was and refund the late fees.

They just bogusly hiked my minimum payment due - in violation of their own stated calculations - so they could charge me late fees and raise my interest.

Company: Discover Card
Country: USA
Site: discovercard.com

  <     >