Legal Question in Credit and Debt Law in Massachusetts

What does closing date mean?

Here are the particulars on a credit card I have that I am questioning:

July payment was due on 7/ll

My payment was posted on 7/15

Their closing date was 7/16

They have charged a late fee of $39.00, plus have the ability of incurring interest charges on any purchases made through 7/16. So, they have 5 additional days to add more interest, but have penalized me for the late payment. Can they do this???

Thanks, your website is great!


Asked on 8/09/05, 8:43 am

1 Answer from Attorneys
Raymond P. Bilodeau Law Office of Raymond P. Bilodeau

Re: What does closing date mean?

You will have to read your credit card agreement, including any changes since you got the card. It usually means the end of the billing cycle, which may or may not be the same as the end of the payment grace period.

It also depends on whether you paid by personal check that takes time to clear or by some other means that would result in immediate transfer of funds to the cc company. "Posting" a payment may only indicate that a check was received, not that the account was credited with a payment.

If actual payment had to made by the 16th and wasn't, then all the penalties that can be levied are legitimate. However, legitimate or not, you may be able to call and threaten to transfer your account to a different card issuer if they do not waive the charges. If you are regularly or frequently late, they might be happy to see you go. If you are a good customer, they might agree to waive the charges.

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Answered on 8/09/05, 1:48 pm


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