Posts Tagged ‘late payment charge’

Warning To All Capital One Customers

Capital One will apparently charge you a late fee if your payment is made past the payment cutoff time, regardless of time zone differences. For example, one lady was charged a late fee because she made her payment 45 minutes after the cutoff time, which was 5PM. However, she’s on the West Coast and Capital One’s payment center is on the East Coast.  Going by her time zone, her payment was on time.

It appears that Capital One is taking advantage of a major loophole in the CARD Act, which does allow credit card companies to set a 5 PM cutoff time for accepting payments, but fails to specify that the cutoff time must be time zone neutral, meaning that payments will be counted as being made on time according to the time zone of the customer.

It should be noted that the government had to make it a law that the credit card companies must give you enough time to pay your bill, and that the amount of time had to be spelled out to the letter. The government should have therefore known that it would need to specify time zone issues as well.

Once again, you can count on the credit card companies to interpret the law in any way that best increases their profits. Fee income in the giant unregulated world that existed prior to the CARD Act’s passage has left the banks and credit card companies feeling entitled to screw their customers and make big bucks doing so.

Until the government acts, if it even will, to amend the law for these situations, be sure to make your payments in the morning that they are due, or if possible the day before, to avoid any chance that you’ll be screwed into paying a late charge.

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