Macy's credit card---i am FUMING!! how is this legal??

on dec 16 i spent $78 at macys. my billing period ended dec 27. i paid the bill in full online jan 6. it was due jan 27.

yesterday i got my paper statement in the mail. it said "balance due $80. purchases $78, INTEREST $2" then it said "because an interest charge was added your APR is 76%!!!!!!!!!!!"

i called up immediately. i asked how they can add an interest charge when the due date hasn't even come yet. they saw i paid online and said the interest charge was refunded because i didn't go past the due date. they said it's a way of letting the customer know that there WILL BE an interest charge if it's not paid in full.

i told them that it is NOT a "will be" charge when it's showing my current balance is $80 which includes the $2. it clearly says "balance due $80 jan 27th". and how can they raise my APR to an insane amount when i was NOT nor NEVER have been late on a bill???

is this even legal? can they put an interest charge on an account that isn't even due yet? i'm almost ready to close the account just on principle.

and for the record, i've always paid every bill i've ever had in full--never a balance. i have perfect credit. so it's not personal toward me with my credit history. they must be doing it to everyone. has anyone else seen this on their account??

any insight? i am fuming.

Re: Macy's credit card---i am FUMING!! how is this legal??

That sounds like usury. 76% APR is ridiculous. They cannot do that. My advice-pay what you owe and cancel it and call the BBB. I do know that Macy's puts a balance if you do not pay by a certain date, but I think they were hoping that you wouldn't look.

I know with the reform in credit next month, a lot of these companies are trying to play games.

Re: Macy's credit card---i am FUMING!! how is this legal??

that was the reason i canceled my macys card. all store credit cards are bad, but Macys is def the worst. The customer service was so horrible, and that was another reason i got rid of this card.

Re: Macy's credit card---i am FUMING!! how is this legal??

They did the same thing to us this month. The only charge we had this month was a $50 gift card, yet our balance was $52!!! We always pay on time. I just didnt pay the $2. They have some nerve.

Re: Macy's credit card---i am FUMING!! how is this legal??

Re: Macy's credit card---i am FUMING!! how is this legal??

76%????? Thats insane.

Re: Macy's credit card---i am FUMING!! how is this legal??

just looked at my statement mine says 24.50% APR
but i also have the $2 finance charge

then in italics underneath it says:
to avoid initial finance charge: if you pay your new purchase balance by jan 27, 2010 your initial interest charge of $2.00 on your revolving account will be refunded on your next statement


this is total bs i am gonna pay by calling customer service i am not giving them an extra $2 for them to refund it, if they even do!!

oh and it also says this on the back of your bill that they will now begin charging interest on the transaction date but will be refunded if paid on time,
i may be cancelling this account

Message edited 1/9/2010 5:18:16 PM.

Re: Macy's credit card---i am FUMING!! how is this legal??

Re: Macy's credit card---i am FUMING!! how is this legal??

I just received my bill & it doesn't say anything about 76% interest. I currently have a credit on account though, b/c was paid in full & only returned this billing period.

On the right under "Financial Terms" it says my APR is 24.5%-which si think is what it always was.

The back of the bill does mention charging interest from the date of the transaction. I think that is jsut so when you are one day late, they can charge you interest for the 31 days, but if you actually pay on time, you don't really owe the $.

My bill also says that they are ending the bra & panty club as of Dec 31, 09. Obviously that's too late now, but since I don't use it every month & don't get a statement every month, I had no idea!

Re: Macy's credit card---i am FUMING!! how is this legal??

I have only used my Macy's card once and it was a disaster.

We bought furniture and were suppose to have 0% financing for 6 months. Needless to say, someone along the way messed up and made it due the following month. At this point, my DH and I were newly married, so my statement was sent to my parents' house. They put it to the side for me since I was like well I have 6 months to pay this off (we live a few hours away). Needless to say, creditors started calling us saying we owed Macy's money the next month. It took two months to get everything cleared up. I will never use that card again!

Message edited 1/9/2010 6:17:42 PM.

Re: Macy's credit card---i am FUMING!! how is this legal??

Re: Macy's credit card---i am FUMING!! how is this legal??

under transaction detail mine says:
as a result of the minimum interest charge of $2.00 being applied to your revolving acount the actual annual percentage rate charged on that account is 35.88%


i dont get where this $2 is coming from cause if you do the math that wouldn't be the interest anyway

also i am guessing the apr is being determined based on how much you owe
i owe $155.38 so the percentage would work out as a smaller # than if you own less if they want to charge everyone $2

dh already said if they say you must pay the $2 cancel it, its the principal of the matter

Message edited 1/10/2010 12:53:01 AM.

Re: Macy's credit card---i am FUMING!! how is this legal??

Could the $2 be the minimum interest charge? Then when the interest rate is calculated based on paying $2 on a low balance it appears the rate is higher?

Message edited 1/10/2010 1:50:12 AM.

Re: Macy's credit card---i am FUMING!! how is this legal??

76%????
I thought there was a cap of 25 %

Re: Macy's credit card---i am FUMING!! how is this legal??

I just looked at our last statement and the numbers add up, no extra $2. Underneath the total, it says in italics that if we don't pay in full by the due date, they WILL add $2 to the revolving balance, which represents an interest rate of 74.5%.

We have a Macys platinum card though. Maybe they add the $2 on to other cards, but if you have a platinum one they just tell you they will if you don't pay in full?

Re: Macy's credit card---i am FUMING!! how is this legal??

Re: Macy's credit card---i am FUMING!! how is this legal??

My last bill is dated from December. Period closing 12/11.
And it doesn't have anything that's mentioned above.

It italics is states:
To avoid initial interest charge if you pay your new purchase balance by 1/11/10 your initial interest charge of $3.69 on your revolving account will be refunded on your next statement.

I wonder if this is something that they started this year.

Re: Macy's credit card---i am FUMING!! how is this legal??

Mine says the APR will be 129%!!! (What the...?)
But there was no additional $2 charge.

Re: Macy's credit card---i am FUMING!! how is this legal??

Re: Macy's credit card---i am FUMING!! how is this legal??

I just checked and I paid my balance in full a week ago and now I have a balance of -$2.00 so I guess they charged me $2.00 as well. I don't get it

Re: Macy's credit card---i am FUMING!! how is this legal??

That's why I cancelled Macy's. I pay all my ccs in full on time, but somehow they were always trying to screw me...

Re: Macy's credit card---i am FUMING!! how is this legal??

There are some new rules that are going into effect in April., After that they will have a harder time raising rates and adding fees. A lot of CC companies are raising rates and fees now so that the new rates are in effect already when the new laws become effective. I have more information about this at my office, so if I get a chance I will post information that might be helpful.