Hi all,

I have an interesting situation right now.

The past month I had a cash advance on my credit card of $80. I was also carrying a balance of over $100 for purchases. All of that was for that month (read: was not yet billed).

Now, I payed *all* of that off in full.

I used the card some more after that, and they considered my purchases part of the previous cash advance. Can they actually do that? The balance was paid *in full* including the cash advance, yet future *purchases* can be re-added to a previously paid off cash advance??? On top of that they are trying to charge me 75% interest for the purchases which they have added to the paid off cash advance.

Is there anything I can do about this?

Is there anything I can do about this?
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Yes,pay this card off and don't use it for a couple of
months. Every time you charge after that pay in full and
don't give them a chance to profit from you!
What this company did to you was in the small print that
you never got around to reading,me included.

The bank may apply your payment to purchases on your current statement and then to purchases not yet billed for and then to your cash advance balance. If you made those purchases prior to your payment being processed, your cash advances were most likely never actually paid - not that your new purchases were added to that balance.

Hello,

No it was paid. I paid electronically and for a period of days according to my online statement it was totally paid off.

Then you are going to have to read, in detail, your card agreement and pay attention specifically to the processing of payments, the addition of charges, and how balances subject to finance charges are calculated. If you feel they breached their contract, then you can take legal action against them.

You might also just want to call the customer service number on your statement and ask them how this could happen

like randy said, call them

but what it sounds like to me is that they may have considered everything all in the same statement and since you still had a balance at the end of the statement cycle you got all that intrest, just my thoughts

75% interest?? I suggest you get a new card with a lower cash advance rate. That is the most insane thing I have ever heard, even on cash advances.

With cash advances, you do not get it "interest free" if paid at statement time. Interest will accrue from the transaction date until paid in full. Many banks may also charge a transaction fee.

Well I talked to my bank I was told the exact *opposite* of this would be the case. As it was a cash advance I made very sure it was paid off and my balance was $0.00.

I was also told as long as it was paid off before my statement due date there would be no interest charge.

I still have around 10 days until my due date, so I'm going to pay it all off again including the purchases they re-added to the previously paid cash advance. Hopefully they will not charge interest as I was told.