- Posted October 31, 2009 by
This iReport is part of an assignment:
Chase's Incorrect Interest Calculations This Month May Affect Many
Have you checked your credit card statement lately? Maybe you should. It is easy to gloss over the interest you owe if you are carrying a balance. But you need to check your statements to verify that the interest charged is correct; otherwise, you’ll be paying a lot more interest than you should.
Sometimes we don’t even pay attention to the “average daily balance.” Recently, I missed a credit card payment and found out the hard way that, not only do you owe interest, but a late fee as well. The finance charge on my $300 balance was almost $31 for the month, along with $39 late fee. I had a zero balance at the beginning of the month.
Chase calculated the “average daily balance” on my bill as $2,820, an amount that was more than my total credit card charges for the year. Common sense tells you that amount is not correct. If you don’t know how to calculate your “average daily balance,” see here: http://www.college-cram.com/study/finance/presentations/243. My average daily balance was $240.
As you might suspect, it took a couple of hours and many different customer service agents to straighten out the problem. The stock answer was, “the computer calculates that amount,” and there is nothing they can do.
Turns out the computer was wrong. If your interest has been calculated incorrectly, ask to speak to a supervisor. Most customer service reps don’t even know how the average daily balance is calculated.
Chase Bank credited my interest back, but there’s no way to know that they fixed their “glitch.” So credit card carriers beware: check your “average daily balance” to make sure it is correct. Otherwise, you could, like me, be charged 120% interest.
And, do you think Chase will willingly go back and remedy their error?