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Rogers MasterCard - Kind of Rip off! Normal?
October 4, 2018
6:53 pm
Save2Retire@55
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Hello! Well, I was shocked today after seeing an interest of $12.91 is being charged to my World Elite MC. I know I always pay on time so called them to clarify what's going on.

It seems I had a balance of $1597. I paid $1500 and missed the $97. Got hit by the interest for the whole statement period. So they charge the interest on the whole $1597 not just the $97 and then will charge interest daily for the remaining balance.

Is this really how it works for other Credit Cards? I have never ever had such an experience before.

Called them and he waived it as a first time but I am still puzzled how on earth they can legally charge interest on PAID amounts? This whole thing doesn't make sense.

October 4, 2018
7:29 pm
slow_n_steady
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Hi Save2retire@55

I had a similar experience a few years back with a different credit card. Just switched a few numbers in my payment by accident (eg. I paid 2037 instead of 2073 actually owed) as a result I got charged the interest on the full amount. They waived the interest when I called them but that's how I learned that lesson. So I would say it is "normal" though I agree not a pleasant experience.

I checked the "interest free grace period" on the Rogers World Elite, and it seems to be the case:
The payment due date shown on your monthly statement will be at least
21
days after the last day of the statement period shown on your monthly
statement. This period of time is referred to as an interest-free grace period.
This means that interest will not be
charged on your Purchases and Fees if
you pay the full outstanding balance by the payment due date shown on your
statement.

There is no interest-free grace period for Cash Advances, Cash-Like
Transactions or Balance Transfers, and interest is charged from the date
such transactions occur.
source:
https://rogersbank.com/legaldocs/en/Disclosure.en.pdf
--------
I interpret that as saying "you don't pay in full, we will charge you the interest for the free loan you've had for 21+ days". My 2 cents. Glad you got your interest waived 🙂

October 4, 2018
8:10 pm
Kidd
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Save 2 retire before i die... Yes, this is normal banking practice. You pay intetest on the entire amount.

Some times what you consider a purchase, they may call it a cash advance and then you will pay interest from the transaction date.

October 5, 2018
8:40 am
Rick
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As I recall, I also got dinged a few cents interest the next statement as well. The one that gets me is my BMO M/C (not sure about others or Visa) considered buying lottery tickets a cash advance and started charging interest immediately.

October 5, 2018
10:53 am
Nehpets
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Save2Retire@55 said
..... I know I always pay on time so called them to clarify what's going on.

It seems I had a balance of $1597. I paid $1500 and missed the $97. Got hit by the interest for the whole statement period. ...  

Problems like this can be solved by enrolling in pre-authorized debit (auto-pay) linked to your preferred bank account. This service was only recently made available by Rogers Bank for the World Elite Card and not widely promoted for some reason.

Once enrolled and approved, it takes one complete billing cycle to become effective, so the first bill following approval must be paid manually.

Here's the form to enrol: https://rogersbank.com/legaldocs/en/RogersBank_PreAuthorizedDebit.pdf

Stephen

October 5, 2018
2:20 pm
Kidd
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Problem with credit card auto debit.... if a charge appears on your statement, that's not yours, the financial institution will take the money from you, then you will have to fight to get it back.

Years ago, i was foolish enough to have business dealings with RBC. A bogus charge appeared on my RBC visa statement. The moment i saw the charge, i knew that it was not mine and i reported it. I was instructed by an individual at a bank branch, pay your total bill, we will investigate the matter and you will get the credit back.

Me being me. I only paid what i owed and RBC started to add their interest to my future statements. RBC warned me, "this may affect your credit rating". I replied that i didn't give a F@&$, i am not paying that bill. it took a few months but RBC finally removed the charge and all of their interest.

How i learnt this lesson. Bell added a few hundred dollars to one of my bills, by mistake, which was auto debit. i got a future credit for service use, i did NOT get my money back. When i complained that it would take a while for me to use up that credit, they suggested i rent some of their over priced movies to zero the credit faster.

I now use rogers, AND i pay them monthly, ONLY after i have reviewed my bill.

October 5, 2018
5:17 pm
Save2Retire@55
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Thank you everyone for your feedback. I really didn't expect this. How on earth can they charge interest on a paid money? Seriously! How come nobody took this for a legal fight? It is like paying interest for a money you don't owe. Just doesn't add up.

Now, I understand how people's debt goes higher and higher!

I am not a fan of auto-payment for anything not even the hydro bill. I like to spend 1-2 hours weekly reviewing what's going on my credit cards and all other bills. I also just for fun check my GIC returns. Something guaranteed but I still like to see the money is added properly.

But yeah, lesson learned! I will make sure to pay over what I owe always.

October 5, 2018
5:33 pm
Top It Up
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Save2Retire@55 said

I am not a fan of auto-payment for anything not even the hydro bill. I like to spend 1-2 hours weekly reviewing what's going on my credit cards and all other bills.  

Truthfully, if you're spending that kind of time reviewing your accounts and you have 21 days to dispute anything untoward on your monthly CC statement - a pre-authorized bill payment should be a given on your part.

October 6, 2018
5:32 am
Nehpets
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Kidd said
Problem with credit card auto debit.... if a charge appears on your statement, that's not yours, the financial institution will take the money from you, then you will have to fight to get it back.
  

In these days of credit card fraud and identity theft, I check my credit card activity online several times a month...takes only a few minutes.

I've had only two instances of fraudulent activity, which was corrected on the spot with a phone call and a subsequent written statement.

Far less time consuming, in my view, than tracking each monthly charge. Once a routine is established, the entire process works very efficiently, especially for anyone who travels and cannot be at home to write checks and lick stamps and envelopes.

Stephen

October 6, 2018
8:12 am
Kidd
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In this particular case, my credit card number had not been stolen, just misused. I had had past dealings with a business in Windsor Ontario and they had my credit card information on file. The charge from them became disputed and RBC was stuck in the middle. For the life of me, i was never going to pay this bill and the threats about my credit rating from RBC just made me more determined than ever. "Listen you imbecile, I'm supposed to be your "valued" customer... you should be fighting for me". I no longer have any dealings with RBC, not because of this matter, it's because they are crooks. RBC would charge you for breathing in their air conditioned air if they could.

I have a belief that every corporate business and every canadian politician oppose, "my money is best served in my pocket".

Trudea bought a 4.5 billion dollar pipe dream and I got the bill. Same as when my wife and kids shop, they spend to their hearts content and i end up paying for it.

October 6, 2018
8:49 am
Norman1
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Save2Retire@55 said
Thank you everyone for your feedback. I really didn't expect this. How on earth can they charge interest on a paid money? Seriously! How come nobody took this for a legal fight? It is like paying interest for a money you don't owe. Just doesn't add up.

That's how the interest waiver always worked for the bank-issued credit cards.

One is borrowing when one uses a credit card. The bank pays the merchant right away and does not wait until the cardholder pays. Money is borrowed for that time period.

Banks usually waive the interest should the cardholder pay off the entire statement balance. Yes, that means that, if the statement balance were $10,000.22, one just paid $10,000.00 and forgot the 22¢, then one would be charged interest for the entire $10,000.22 of purchases.

You may be thinking of how the interest waiver on some department store credit cards (like Sears card) used to work long ago. If one paid at least a certain portion of the statement balance, something like 50% or 25% of the statement balance, then the store would waive the interest on that portion of the statement balance.

The department store cards weren't necessarily a better deal. They charged around 28% interest while the banks charged around 15% to 18%.

October 6, 2018
3:54 pm
Save2Retire@55
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Yes, lesson learned. I have had about 8 Credit Cards and have been using credit cards since I graduated from the uni about a decade ago. Always paid it off and never had to pay any interest. The only time I paid was when the losers in ScotiaBank didn't want to increase my limit (it was $500) and I had to once pay them an overcharge fee of $25. As soon as I got that charge, I called, they refused to waive, I cancelled!

I since recovered 10 times the $25 from Scotiabank by getting Gold Amex with $250 bonus and cancelling before the end of the 1st waived fee year.

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