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I spend a lot of time watching and listening to financial news reports; and since we’re officially in a recession, I’m doing everything I can to make sure my finances stay on track and my credit stays intact. I think that most financially responsible people are taking similar measures, which includes keeping debts low and paying bills on time. However, it appears that credit card companies have found a way to mess with their reliable, responsible clients.

Credit card companies can pretty much bet on the fact that people with bad credit and those in a bad place financially will default on their bills or submit late payments. Hence, they can charge additional fees and increase a customer’s interest rate, which increases their bottom line. But it seems as if it isn’t enough for credit card companies to acquire additional funds from their unreliable clients. Now, they’ve decided to target their faithful customers. These are the people with a long credit history. The people who never miss a payment, and the people who always payoff their balances.

Here’s How Credit Card Companies Hit Responsible Customers

The average credit card user has discovered online account management. If you have a computer and Internet access, you can do anything online – including pay your credit card statements. Simply sign up for an online account, choose an account password, enter your information, and you’re able to check your balance, pay your bills, etc. It’s fast, convenient, and you’ll definitely save money on postage. But there’s a catch.

Unless you have a sizeable amount of money sitting in your bank account, you likely pay your bills on the due date. If mailing the bill to a creditor, you’ll have to send the bill at least three days prior to the due date. But if paying online, you can simply log onto your account on the due date and submit your payment without penalty, right? Well, it depends on your credit card company.

Credit Card Companies Have a Different Definition of “Late”

Recently, credit card users have been receiving an unpleasant surprise. Despite paying their bill on time through their credit card company’s online payment center, they’ve gotten hit with late fees – and in some instances – an interest rate increase. Apparently, online payment centers feature a cut off time for payments. And any payment received after said time is considered late.

I can understand having a cut off time. But what I don’t understand is why credit card companies choose odd or early times. The majority of my credit cards allow payments until 5 p.m., and if a due date falls on the weekend or a Holiday, payments are processed on the next business day, minus a late fee. However, I do have one card with an 11 a.m. cut off time, which is ridiculous and a sneaky way of swindling money from customers – especially since the cut off time was mentioned in the fine, fine print.

We lead hectic lives, and most people don’t pay attention to small details. I know that we should, but it doesn’t always work out like that. Besides, is it unreasonable to expect credit card companies to offer same day credits on payments scheduled between noon and 5 p.m.? The lesson here is to plan your payments in advance, and read, double-read and triple-read the fine print of your credit card agreements, to make sure you don’t get caught out by this and other sneaky tactics.

Photo by: Fosforix