Legal Question in Credit and Debt Law in Illinois

Credit card balance after account closed.

In October, 2001, I transferred balances from two of my credit cards to a third credit card and received a special interest rate. I lost my job in November 2001 and received a severance package, which I used to pay off remaining balances and then on March 15, 2002, I closed all three accounts.

In May, 2002, I received a statement from one of the three credit cards that I had paid in full and closed. They are just now telling me that there was an problem with the check sent to them back in October 2001 and that I now owe them $1537.12 for the check that didn't go through. First I was told that the check was returned NSF back in November and then another person told me that the check was not processed until this year after the date the account was closed.

Am I responsible for the balance now?


Asked on 7/10/02, 12:38 pm

1 Answer from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Credit card balance after account closed.

You face an interesting situation, mostly because of the various factual scenarios.

1. If you sent an NSF check, then you would be liable to pay the balance due plus -- as I understand these special interest rate deals -- full interest since you failed to make minimum payments during the period of time covered by the reduced rate.

2. If, on the other hand, the credit card company did not process the check until this year, and, assuming it went through and assuming further that the amount they now want you to pay merely reflects interest, I think you have a good case that you are not liable for this interest payment.

3. If the credit card company did not process the check until this year and the check did not go through, i.e., it was NSF, then I think you are liable for the balance due but not the interest (at least that is what I would argue).

-- Kenneth J. Ashman; [email protected]; www.lawyers.com/alo

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Answered on 7/10/02, 1:43 pm


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