posted by ernest_t_bass
Paid off a credit card last week. In full. Down to $0. This week they hit me with interest on purchases. Yeah, I know... terms and conditions. But I have a $0 balance. GTFO with your added interest.
True story here...
About 20 years ago my aunt and uncle got themselves in bad financial situation with a ton of credit card debt. They went on the Dave Ramsey snowball/envelope program to get out of debt. A few years later when they paid off their last credit card in one payment (somewhere around $10,000) they got a bill the next month for $150. It was an "early pay off fee" that was, as you said, in the Ts and Cs (probably).
My uncle called up the company, explaining that he paid off his balance in full, already cut up the credit card, and will not be paying the $150. They went back and forth about how it would hurt his credit (his response was he didn't care, already owned his home and got rid of credit cards). They said they would take him to collections and eventually court to garnish his wages.
Now, my uncle at the time worked for a lawyer (my uncle restored antiques which was a side business for this lawyer). He told the card company "ok, you take me to court, and by the time you get there you have paid your lawyers close to $1000 to recover $150. On the day of the hearing I will hand you a $150 check and the judge will send us all home. So, is $150 worth $1000 to you?"
They said "sir, you can't do that?" He said "I already talked to my lawyer and I definitely can do that."
They said "sir, we will wave that fee."