I thought the new law stops this.

[naggie72]

My rooms to go card is applying all my payment over the minimum payment to the charge that is no interest. I thought the new laws prevented this. I have a balance that has interest charged and a balance that has no interest charged and I thought anything above the minimum payment is to pay on the higher interest rate balance.

[The J]

Naggie -- I'm moving this thread to YM where you should get more responses.

[naggie72]

Highest interest balances paid first: When consumers have accounts that carry different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers or ATM withdrawals), payments in excess of the minimum amount due must go to balances with higher interest rates first. Common practice in the industry had been to apply all amounts over the minimum monthly payments to the lowest-interest balances first -- thus extending the time it takes to pay off higher-interest rate balances.



Read more: www.creditcards.com/credit-card-news/help/what-the-new-credit-card-rules-mean-6000.php#ixzz1B7jsGGkY
Compare credit cards here - CreditCards.com

[haapai]

Have you checked to see whether the piece of plastic that you own is actually a credit card? It might be some sort of store account that is somehow exempt from such rules.

On the other hand, they might just be a bad actor. Have you tried calling them and asking them pointed questions regarding why this is happening? Does the explanation make a lick of sense? Do you have a copy of your terms and conditions statement? Is it up to date? Have you read the actual text of the law that applies? Made a paper copy?

You might have to start a file and spend a lot of time on hold to get to the bottom of this. How much money is at stake?

[The Walk of the Penguin Mich]

Is there a time limit on this no interest charge? If so, it may make more sense to pay the 0% interest off well in time of the higher interest because if the 0% charge is not paid off by the end date, you'd wind up paying a MUCH higher interest on it (29%) from the beginning.

[naggie72]

I was just clued into it today, so haven't really done much research. Just wanted to confirm that what I heard was right and then I found the info re the second post.

[naggie72]

Oh and it is 25.99% vs 0%.

[8 Bit WWBG]

Your interpretation of the rules is correct. I second the fear that this is some store card vs a credit card that is exempt somehow. But it doesn't hurt to find the official rules, and then call and complain.

Depending on the balance, 25% vs 0% IS a big deal.

[Deleted]

call them and talk to a customer service representatives.
Cannot hurt to ask.

[naggie72]

In addition, several confusing practices, such as double-cycle billing, have mostly been eliminated. Card companies must apply payments first to balances that are incurring the highest interest rate. They must also mail statements to customers at least 21 days before payment is due. And while companies can still raise rates based on delinquent payments, they have to lower them back if customers stay current on payments for six months.
The bill doesn't just apply to cards from Visa (NYSE: V) or MasterCard (NYSE: MA). Store cards from businesses like Target (NYSE: TGT) are also subject to the bill's standards.

I found this also. It is a rooms to go card and does have a 16 didgit CC number unlike my kohls card.