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Originally posted by cloakndagger
Sounds like they want to keep that account open for years so interest can accumulate. This way they can take you to court in 5 years with an outstanding balance of thousands.
Originally posted by EnlightenUp
I've never had such an interest rate but if I ever close an account I make sure my balance is zero before closing.
I'd look at the account disclosures to get the exact method that is used to charge interest and pay according to what would stop it. Usually it's average-daily-balance*number-of-days-in-statement*daily-periodic-rate. If there's no grace period on your particular balance type (purchases, cash advance, balance transfers, whatever), there should be the month you pay off the balance+interest, the next month after that should be the interest charges from the remaining balance for the previous billing period. It should end there.
If they keep charging you for only having interest left on the account and have you keep paying interest on the interest with no balance left, something is defintely not kosher.
[edit on 9/28/2009 by EnlightenUp]
Originally posted by Drexl
Could be they are charging you some transactional free. Every time you are paying this type of fee, you are paying it by a similar method that incurs the next transactional fee. Maybe if you paid in cash it'd prevent that type of fee . Or , if you do pay this $20, they will deduct.. say 3 dollars , so the month after you will have a positive balance of 17 dollars and no need to make a payment, thereby no further transactional fee's.