Legal Question in Credit and Debt Law in New Jersey
Credit Card Interest on Promotions
Can a credit card company legally charge interest on the full price of an items, for a full year on an item that was offered at 0% financing with balance to be paid by expiration of promotion date. More than minimum payments were being made monthly, but the expiration date fell between payment months and account was charged interest for full year on entire purchase price. The company has said too bad! Should'nt interest just be charged for the time after the promotion ends if there is still a balance?
1 Answer from Attorneys
Re: Credit Card Interest on Promotions
Generally speaking, what the credit card company did is standard. If you read the agreement carefully, it probably states that the interest is deferred, not waived. If you pay the balance in full before the expiration, there is no interest because there is no balance. If you carry over the promo period however, the balance plus interest is due. As I said, it is pretty standard but you should look carefully at the agreement.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
