I bought an HP computer with their credit card deferring the payment for 6 months. Missing the first payment $65 they charged a $39 late fee. I made double the payment to cover both. Since then payments were $150, 2 @ $120, $200. The late fee is still showing as a separate entity with its own finance charges. No amount of payment has deleted it.
Why are they doing this and how can I get that charge paid to stop the additional interest charges? Thanks
It appears that the HP credit card is actually a product of HSBC Bank Nevada. The lousy thing about their online application process is that you can’t view the card terms and conditions before you give up all your personal information. That should be outlawed. I just email Senator Chris Dodd about this practice and asked his office to look into this practice further.
Here is what the terms on the HP site say about the card.
*90 Days No interest, No payments on all categories. *Same as Cash offer on HP Home & Home Office Store credit card purchases. No Finance Charges if purchase is paid in full in 90 days. If the purchase is not paid in full or Account not kept current, Finance Charges are assessed from purchase date and Minimum Monthly Payments required. Minimum Finance Charge $1. Certain rules apply to the allocation of payments and Finance Charges on your promotional purchase if you make more than one purchase on your HP Home & Home Office Store credit card. Call 1-888-367-4310 or review your cardholder agreement for information. For Accounts generated on or after 3/27/01: Variable Standard Rate APR: 17.65% as of 05/05/09. Variable Default Rate APR: 24.99% as of 05/05/09. For Accounts generated before 3/27/01: The Standard Rate is 19.2% APR. Offer valid 5/04/09-10/31/09.
What that indicates to me is that any additional charges against your account will be billed separately and will not be paid off until the original balance is paid in full.
Your best best at this point would be to call customer service at HSBC bank, using the number on the back of your card, and ask them for instructions on how to pay the late charge specifically. They might tell you that it’s not possible. You see banks make extra money from people by charging fees and having ridiculous terms to catch you in these traps.
It sucks but I bet if I could see their full terms and conditions for the card I could point out where they spelled out how they were going to screw you over. Banks are pretty good about doing that in the fine print because they know that nobody reads it.