I closed my credit card account. Can the bank continue to charge interest and fees?
Yes. The bank may charge you for interest and fees that were assessed before you closed your account. Review your account agreement for information on how finance charges are calculated on your account, or contact your bank.
The bank may charge residual interest for the days in the billing cycle before you paid the balance in full. Residual interest accrues from the first day of the billing cycle in which you paid the balance in full until the date 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, the bank may charge you for the residual interest that accrued from the first day of the billing cycle until your payment was credited on the 24th.
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 billing statement.
Refer to 12 CFR 1026 "Truth in Lending (Regulation Z)" for more information.
Last Reviewed: October 2020
Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.