Forums
Hi,
Can a credit card company enforce a late fee for merchandise that was returned after the payment due date? I was unable to return the merchandise sooner because I had to go out of state due to a family emergency. The company charged a late fee not only for the first month but also for the next two months, even after explaining the whole situation over the phone and mail.
They have reported a late payment and an outstanding balance of $218 (which is all late fees and interest) to all 3 CRAs. I told her that pyramiding of late fees was illegal, she said that it was legal under the FDCPA.
Any suggestions as to how to resolve this matter??
Late fee on returned goods
Hi Rafe,
Can a credit card company enforce a late fee for merchandise that was returned after the payment due date?
I am afraid they can because you had returned the goods after the due date. As far as I understand from your post, there was an unpaid balance, and thus, the creditor can report the late. If you would have talked to them about your problem before the due date, they may have considered, though I am not sure. Sometimes some creditors do agree to such requests.
However, there's nothing much to worry about this. If you maintain making ontime payments on this card after this, and all other cards, your credit score will improve. With time the negative impact of this item will lessen.
Thanks,
Aaron