Fluctuations in credit card billing dates are a costly nuisance
Q. Is it legal for credit card companies to change your due date each month and then charge a late fee? I pay my bills automatically through my bank with a monthly, dated payout to the company automatically deducted each month, and now I am receiving late fees on my bill.
Anonymous
A. Credit cards have grace periods - the time you have to pay your bill before interest is charged after you are billed - that typically run from 20 to 30 days. It is not unusual for card issuers to shave down the period, say from 25 to 20 days, thereby changing the billing date by five days.
Credit card companies can change the billing date with little warning, something that has put many people in your situation. Some companies, however, will allow you to lock in a billing date to permit the automated payments you have established.
The frustration you have experienced is not unique to your situation. Complaints reached such a pitch that federal regulators in May proposed new rules that include requiring the credit companies to mail bills at least 21 days before they are due.
Late payments, though, still generate late fees. Obviously, having a rigidly scheduled disbursement does not permit the flexibility that you clearly need with your bank.
Q. I would like to know, after numerous attempts, how to remove a measly $22 charge on my credit report. It was imposed by Bank of America, yet they have granted me in excess of $25,000 in unsecured lines of credit. I have disputed the charge via Equifax, only to be told it's mine. I had not done any type of business with Bank of America before 2006. The $22 in question goes back to 2004.
David Walker, Dartmouth
A. The Fair Credit Reporting Act spells out the procedures for removing erroneous entries on credit reports, which occur regularly. However, changes in the rules took effect in 2004 and consumers don't have as much going for them with issues in dispute that predate Dec. 1, 2004.
Over time, consumers have been given considerably more leverage to get mistakes corrected.
If you still fail to get the entry dropped after following all the dispute procedures with Equifax and requesting a change by Bank of America, you can ask Equifax to post your comments on your credit report explaining the error.
Everyone, by the way, is entitled to an annual free credit report from all three reporting agencies. Visit Annualcreditreport.com to get them. Everyone needs to have a look to see what's on the report .
To learn more about your rights when it comes to issues of credit, visit www.ftc.gov/bcp/conline/pubs/credit/crdright.shtm.
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