Answers About Credit Card Fees and Charges
Select from the following questions about credit card fees, late fees, over-the-limit fees, and cash advance fees.
Can the bank charge a late fee on my credit card?
Yes, if either of the following is true:
- your payment is late or
- your payment is for less than the minimum amount due.
For more information, please review your Account Agreement or contact the lender for an explanation.
March 2010
Can the bank charge a fee for a cash advance on my credit card?
Yes, if it was disclosed in the account agreement, the bank can charge you a fee for a cash advance. You should review your agreement or contact the lender for an explanation.
March 2010
I closed my account. Can the bank continue to charge interest and fees?
Yes, you may be responsible for certain interest charges and fees.
Even though you paid off and closed your credit card account, it is possible that the bank may charge you “residual interest" for the days in the billing cycle before you paid the balance in full. Residual interest is interest that accrued, when you were not eligible for a grace period, from the first day of the billing cycle in which you paid the balance in full until the date that the bank credits your payment.
For example, you have been carrying a balance for three billing cycles. You receive your account statement reflecting a $1,000 balance. The minimum payment is $50 and it is due on the 25th of the month. You decide to pay the balance in full. The payment is credited on the 24th.
Even though you paid off the $1,000 before the payment due date, your account agreement may allow the bank to charge you for the residual interest that accrued from the first day of the billing cycle until your payment was credited on the 24th day.
Not all banks charge customers residual interest and some banks waive such interest. You should review your account agreement for information on how finance charges are calculated on your account and/or contact your lender.
Additionally, the bank generally should not charge you fees once you have closed your account unless the fees are because of something that occurred before you closed your account, such as a returned-check fee.
If you feel that the fees or interest were assessed in error, you should file a written billing error dispute within 60 days of the statement that showed the alleged error. The information on filing a written billing error dispute and the address to which the notice should be sent are listed on your periodic statement.
March 2010
Can the bank charge me an over-the-limit fee?
Beginning February 22, 2010, the bank can only charge you an over-the-limit fee if you have agreed to participate in its over-the-limit coverage program. The credit card company must give you certain disclosures before you agree to participate in its over-the-limit coverage program, including the amount of the over-the-limit fee. After you consent, the credit card company must provide you written confirmation of your agreement before it can charge the fee. The credit card company cannot require you to agree to over-the-limit fees but it can ask if you would like to participate.
Whether or not you opt-in to over-the-limit fees, transactions that exceed the credit limit may be declined or approved at the credit card company’s discretion. If you do not opt-in to the over-the-limit fee and the credit card company allows a charge that exceeds your credit limit to go through, it cannot charge you an over-the-limit fee.
If you opt-in to allow transactions that will exceed your credit limit, you can only be charged one fee per billing cycle. Also, the bank cannot charge you an over-the-limit fee for more than three billing cycles for the same over-the-limit transaction.
You can revoke your opt-in choice at any time. The bank must tell you how to revoke your opt-in when it asks you to participate in the program and each time you are charged an over-the-limit fee. If you have questions about how to change your opt-in choice you should contact your credit card company.
March 2010
Phone: 800-613-6743
TDD Number 713-658-0340
TTY: (800) 877-8339 (via a relay service)