Bank Of America Grace Period scam, patronizing, and threats Albuquerque New Mexico Nationwide

There was a late fee because he paid late. Although he may have paid the balance in full, he paid a day after the due date. I'm sure that on the next statement, there was a $39 fee along with interest for the previous balance paid in full (because the grace period wasn't used so interest accumulates on the entire balance the the time that it was in the grace period). A credit card is giving a grace period on the interest accrual. As stated about balance transfers and cash advances, there are no grace periods. Only for new purchases.

From Bank of America's site:

What is a finance charge and when does it occur?
A finance charge is the sum of the interest, including transaction fees and certain service fees, on your credit card account. If you use your credit card for purchases only and pay the balance in full every month by the payment due date, then you will not pay the interest on those purchases.

By paying the entire balance due, not just a part of it, you'll be taking advantage of the grace period on purchases. If you pay less than the full balance, there is no grace period at all and your entire credit card balance accrues interest. Please note, cash advances and balance transfers have no grace period, so even if you pay your balance in full every month, you will pay interest on outstanding cash advances and balance transfers.

I am presuming the OP paid the entire balance. Why was the late fee assessed? I would call back and talk to someone else, sometimes different people will give you different answers.

Mike
Waldorf, MD

Grace periods only deal with a date after a payment due date. If this is not so, please talk to the people who publish dictionaries. Bank of America is a nasty company and I am ending all business with them. I hope other people realize this and do the same. I'm not going to be told what a grace period is by Bank of America's standards and then be treated like dirt on the phone. I will take my business elsewhere where they know the true definition of grace period. I refuse to do business with a company that treats its customers like dirt. Thank you for your opinion, though. Bank of America needs to find another word or phrase other than 'grace period' instead of misleading its supposedly valued customers.

The grace period in this case is not a grace period on the due date of payment, but a grace period on the accumulation of interest. Basically, the bank is within their rights to begin charging you interest on your balance as soon as a charge posts on your card. However, instead of charging you interest right away they give you a grace period where your balance is not subject to finance charges provided that you pay your statement balance in full prior to the due date which in this case is 20 days from the date the statement is cut. Your payment due date is fixed. All this is spelled out in your cardholder agreement. There's no rip off here.