US BANK Minimum payment doubled, fee assessed, reported to collections- for PAYING BILL EARLY! Portland, Oregon

is available at this site!

*Just type in 608350 and it appears as 'Consumer Comment #21' at Ripoff Report #608350.

Thank You

******************************   BANK/MORTGAGE ALERT   *****************************
*Don't forget to type in all of the following at this site and read the Ripoff Reports for valuable information if you have a bank account or a mortgage in the USA-

MERRILL LYNCH
BANK OF AMERICA
GMAC
WELLS FARGO
INDYMAC
CITIGROUP
ONE WEST
JP MORGAN CHASE
ALLY

Dear consumer,

I also am a customer of US Bank and your complaint is really only telling on yourself, that you did not know or understand how things work. US Bank would probably be glad to see your report because it legitimizes the pre-conceived notion that the consumer is ill-informed.

Your payment, and any other payment, that you make within a due-date period is taken into THAT MONTH'S payment period and applied to the total debt, beyond your minimum amount due. IT IS NOT APPLIED TO THE NEXT MONTH'S PAYMENT  because it wasn't paid in the time frame that the next month's payment was due.

The only way I recommend dong this to avoid any problem with this in the future is to get online and pay the payment within the prescribed payment period by US Bank's website, or pay it by phone, if you are out of the country or not at home. There is no way around that. UNLESS:

I am personally good enough friends with my bank representative that I could send her a check dated for the day after my payment comes due and ask her to manually deposit it during the period that my next month's payment comes due. I WOULD NOT EVER DO THAT BUT IT IS A LAST RESORT. I trust US Bank for my only bank for the last 7 years, and any problem I have ever had with them has always been resolved, sometimes with a lot of frustration, but always satisfactorily resolved. Try making friends with your local branch tellers and account managers. A little bit of influence goes a LONG, LONG WAY!

God bless and good luck.

I consider myself to be a fairly intelligent person, but maybe I'm not getting something here.

You paid early, the bank said it was late, they finally found the payment, and then penalized you for paying early and are threatening to put you in collections?

Something about this story isn't right. I pay my payments early all the time and I've never had a problem like this.

Not to sound rude, but I don't think you're understanding what they're saying to you.

1. That someone from Wells-Fargo would call you on the phone for a missed credit card payment, that technically was not missed yet.

2. That they would report you to the credit bureau for a late payment that couldn't be recognized by the credit bureau. 30 days late is the first milestone in deliquencies. But, according to their standards it is late, and they can charge a fee.

How was Wells-Fargo supposed to know that you were paying ahead? That option is not available for credit cards.

I have paid a bill early before and I called and found out this...

If you pay your bill early, it has to be after the new billcycle date.

Lets say your bill is due on the 9th of Nov , and your billcycle date is the 30th of October, if your payment posted before the 30th of October, then it will count as payment towards the previous bill, and you still have to pay for the bill that is due on the 9th of Nov

in the consumer comments section at Ripoff Report #411913, okay?

in the consumer comments section at Ripoff Report #411913, okay?

May 25th 2008.

Flynrider gave me the exact answer I was expecting.

And thank you Karl. I was expecting steak dinners, Obama poems and engine sludge/insurance death sweeps again. I have no use for or desire to sing-a-long to any Bank of America poems..but maybe there are some who come to this site that will.

But I doubt it. I have not EVER..not ONCE, EVER...seen a reply from ANYONE who sang a long to one of Karls retarded poems.

in the consumer comments section, okay?

  I was under the impression that your earlier post was asking to quote specific regulations.

  There is no single regulation that prevents the early payment.  Since the bank cannot collect interest early, and since they must post the payment when received, by default it has to go straight to the principle.  That means when the cycle eventually closes, interest is still due and a payment needs to be made.

I didn't expect months of regulations to be posted, I would probably not have understood 99% of it anyhow, like most consumers don't. I was just asking "IF" there was anything that could be read (or in writing), that prohibits a bank from taking an early payment. (In the regulations, not the banks terms).

I was just wondering if a bank would be in violation if they CHOSE to accept an early payment...a yes or no would have sufficed. I understand they may not be able to charge interest on an early payment but that is why I pay off the card EARLY, to avoid the interest.

  There are dozens of separate regulations that restrict how banks can collect interest.  Most, but not all,  can be found in 12 CFR.   Basically, a bank cannot collect interest from a consumer that has not been earned.  Sounds like a reasonable consumer protection, right?   Open ended credit accounts in particular must follow strict rules dictating the calculation and collection of interest, which are based on the opening and closing of cycles (see 12 CFR.226).  Because of this, bank accounting systems cannot accept an interest payment before the close of the cycle.  CFR 12.226 also states that any payment must be posted when received, so the only place it can be posted is towards the principle.   It's no accident that no credit card allows you to prepay a monthly payment.   That is why the card agreements tell you what will happen if you pay before the cycle closes.

   If you were asking me to pull out a specific reg that says you can't prepay a credit card, that's not going to happen.   The reason is the cumulative result of dozens of rules that govern several aspects of banking transactions.   Unlike you, I have neither the time nor the inclination to write a 40 page dissertation on the subject.   If you have a few months of spare time, you're free to peruse 12 CFR for yourself.

  As far as the consumer is concerned, it's the card agreement that governs the transaction and how prepayments will be applied.

Yes...just a question for flynrider who seems well steeped regarding banking regulations.

When you say they "can not accept" a monthly payment for a billing cycle that has not closed yet; is this actually a regulation that we can read?..or...are the banks again using regulation(s) as yet ANOTHER way to exploit customers....customers who simply wish to pay early?

In other words is it actually and technically illegal or in any violation of written regulation if the bank were to simply choose to except an early payment as.... well no other way to put it but an early payment?

"Who ever heard of penalizing a customer for paying their bill early?"

  Revolving credit accounts work this way at all banks.   If you send them a payment before the billing cycle has closed, that money is applied directly to the outstanding balance.  They cannot accept a monthly payment for a billing cycle that has not closed yet.  That would be equivalent to accepting interest before they'd earned the interest and is against banking regs.  This is spelled out in the "fine print" card agreement that few people ever read.

"and they told me I have been reported to credit bureaus and collections."

  This is unlikely.   If you're truly only 3 weeks behind I doubt the credit bureaus have been notified.  You generally have to be at least 30 days behind before that happens.  As for collections, that's even more absurd.   I think you just happened to be talking to an overzealous employee in their collection department.