Legal Question in Credit and Debt Law in California

At the end of July I made a minimum payment (under $25) on a credit card, for some reason the credit card company stated they could not get the payment to go through (there was more than enough money) and I was never notified there was an issue. When I was doing my bi-monthly check on my bills on 8-8 I noticed the credit card was still showing that a minimum payment was owing, thinking I had neglected to pay the bill I went ahead and did so since the due date was close. Today I received a call from the credit card company stating that they were unable to process the payment I had submitted stating that I had placed a stop payment on the check and that as a result I now had a minimum payment due of $170 and change (2 stop payment fees of $39.95 EACH as well as an additional $39.95 in late payment fee and minimum payment). After contacting my bank, I confirmed that I no stop payment had been placed, with a representative from the bank on the phone I contacted the credit card company. After having the bank representative verify that I did not stop payment on any check and that they did not see where ANY checks had been rejected for any reason. Once the bank representative convinced the credit card supervisor that I was innocent the supervisor agreed to reverse the $119.85 in false fees if I agreed to pay the "past due" amount of $170 immediately, if I did not agree to pay the $170, they refused to reverse the fees. Is this legal?


Asked on 8/17/10, 7:52 pm

1 Answer from Attorneys
Arthur Stockton Stockton Thornton LLP

What the credit card company did is unethical, and illegal. However, in life you have to choose your battles carefully and not every wrong is worth pursuing. This might be one of those times to turn the other cheek, unless you have nothing better to do than pursue the renegade credit card company. At the same time, don't hesitate to vote with your feet. Tell everyone you know the truth about what they did and how bad they handle customer service. Write a letter to the CEO. Remember, there are plenty of card companies out there who would love your business if you have good credit.

Read more
Answered on 8/25/10, 12:16 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California