Why am I still getting Interest Charges after paying in full?

Question

Level 1

4 points

Why am I still getting Interest Charges after paying in full?

I keep getting interest charges from Apple despite paying my statement balance off in full.

i have seen multiple other people with the same problem. I missed a monthly payment by an hour and they charged me over $60 for it. This is fine, I forgot to pay and they charged me for it. Even though $62 fee (interest charge)is ridiculous for a late payment I get it.

now a month has gone by and I was charged again for over $30. This I don’t understand. I paid the last months statement balance in full and somehow am still being charged interest?

I talked with support and they clarified that I “was being punished for missing the payment and must pay interest the next 3 months on my balances and there is nothing I can do about it”

I know! I even took a screenshot because I was in disbelief. They justified it by saying it was in the customer agreement. Of course no one reads those things but that doesn’t mean you should but unfair practices in them.

it’s a shame. I’ve never missed a payment in two years. After this I’m canceling my card.

[Re-Titled by Moderator]

Posted on Aug 1, 2024 6:54 PM

Reply

Answer 1

Top-ranking reply

Jeff Donald

Level 7

26,073 points

Aug 2, 2024 4:45 AM in response to Westb123

So, I’m not understanding the issue. You were charged interest for being late on a payment. It happens and it’s one of those things that nearly all of us do at one time or another. One thing you can be thankful for is you didn’t have to pay an additional >late fee< like most credit cards charge. You can also setup scheduled payments to make sure it doesn’t happen again.

On the matter of the interest you were charged the next month, what’s called residual interest or ghost interest, it’s standard practice in the credit card and banking industry.

Residual interest is what happens when you are charged interest on the amount you borrowed and did not pay back on time, as agreed to. Interest on all credit cards is calculated and compounded daily. The sum due the next month is based on the daily interest charged until the account is paid in full.

Another feature you may not be aware of is you can make up to 5 electronic payments per day. You are not limited to just one payment per month. The sooner you bring your account to zero, the less daily interest is compounded and the less you’ll pay.

https://www.goldmansachs.com/terms-and-conditions/Apple-Card-Customer-Agreement.pdf

Reply