Credit card question

[Spacehead]

We were talking at work today about various loan payments. One guy wanted to made a mortgage payment over the monthly amount but was denied. He wasn't sure if it was the app that wouldn't allow or the bank.
Anyway, another guy says that yes a lot of places do that... not allow you to make a payment larger than what's due that month. Then he tells me that his mother recently wanted to pay off her credit card for the month, like she always does, but was told she could only pay the minimum amount due.
Is that a thing? I have never heard anyone ever say that before & it's never happened to me. Would that even be legal?

I do know to take what this guy says with a grain of salt, sometimes a very large one. Just did a quick search but nothing popped up about this.

 

[Captante]

While I wouldn't put it past a sketchy credit card issuer to slip something like that into the fine print almost nobody reads in full, I doubt that any LEGIT bank would make that policy.

Of course with some of the stuff Wells Fargo and BOA (for examples) have pulled in the past I suppose you never know.

 

[highland145]

Even this loan shark takes payment in full with no penalties. I got a kid in college.

They can call their dept of consumer affairs.

 

[Spacehead]

While I wouldn't put it past a sketchy credit card issuer to slip something like that into the fine print almost nobody reads in full, I doubt that any LEGIT bank would make that policy.

Of course with some of the stuff Wells Fargo and BOA (for examples) have pulled in the past I suppose you never know.

He did mention about looking into the fine print. This just seemed odd to me. Like i said, i'd never heard of this before.
I was going to ask him if he knew what brand the card was and the issuer but ended up not asking.

 

[lxskllr]

I prepay my gas & electric bill, and aside from a warning/confirmation that I'm giving them more money than they asked for, they happily take it. Never heard of a minimum only credit card payment.

 

[dank69]

There is no way it is legal to restrict a credit card payment to the minimum payment in America. No way. Your friend is either lying or misunderstood something.

 

[highland145]

There is no way it is legal to restrict a credit card payment to the minimum payment in America. No way. Your friend is either lying or misunderstood something.

Or the company rep said so. How many times has ATT, Verizon, Cable, etc lied to me? I might have enough bullets.

 

[dank69]

Or the company rep said so. How many times has ATT, Verizon, Cable, etc lied to me? I might have enough bullets.

A lie like that would shutter a legit company on the spot. Credit card companies have to write on every bill "you are fucking stupid if you only pay the minimum amount."

 

[highland145]

A lie like that would shutter a legit company on the spot. Credit card companies have to write on every bill "you are fucking stupid if you only pay the minimum amount."

If you can prove it and take action. Took me 6 calls to ATT for them to release my # so I could VOIP with a different company. Told every rep I was recording. They don't give a shit.

 

[Captante]

If you can prove it and take action. Took me 6 calls to ATT for them to release my # so I could VOIP with a different company. Told every rep I was recording. They don't give a shit.

Exactly.

 

[Grey_Beard]

There are all kinds of agreements. All kinds of fine print. If you do not ask, as I do with every loan I take, if there are any restrictions or penalties on paying the loan off early or make additional payments, then this could be something. The devil here is the details. If you have the paperwork, read every word. This has to be described. Based credit score or worthiness, some vehicles, loans or credit cards, are written to assure that the issuer gets a certain return, payment or income. Some of this is venture capital or private equity firms that purchase companies or banks. They market those that cannot get regular loans or those that stumble into them.

My first move would be to research the lender. These firms should have information available online, but it may be difficult to find. These are alternate lenders that skirt or go right up against usury laws, both state and federal. Better Business Bureau is another resource. This may take effort, but it will be available.

Always read your agreements. If something does not make sense, do not sign it. Just refinanced my home and the close took me an additional 30 plus minutes, because I read every document before I sign them. Drives the closing company crazy, but I refuse to do any other way. Oh by the way, I have found errors, not this time, but numerous times in the past.

 

[Grey_Beard]

Exactly.

Love those teeth.

 

[Tweak155]

When I would make “over payments” (extra payments) to my mortgage, they were required to be done in 2 separate transactions. Likely this person needs to find the option for extra or additional payments.

The monthly payment doesn’t go down when you do this, all it does is alter how much goes towards principle vs interest on the following month’s payment… so I suspect they want a payment of the exact amount to show you made it for that month (or some other guideline along those lines).

 

[deadlyapp]

The only thing I can think of is that she used one of those installment loans that the credit card companies are now hawking, which may or may not allow you to pay off the amount early (vs pay a fixed monthly amount for x number of months). It would be very strange that they would not allow you to pay more each month though (although you often have to indicate that you want to use the extra amount to pay down principle, vs simply pay forward the payments / minimum interest. Most credit cards now default to going directly to the principle when you overpay, however you don't have to make that your standard.

 

[manly]

Exactly.

Love those teeth.

@Captante was a dashing fella in that portrait from ten years ago.

 

[Leymenaide]

When I would make “over payments” (extra payments) to my mortgage, they were required to be done in 2 separate transactions. Likely this person needs to find the option for extra or additional payments.

The monthly payment doesn’t go down when you do this, all it does is alter how much goes towards principle vs interest on the following month’s payment… so I suspect they want a payment of the exact amount to show you made it for that month (or some other guideline along those lines).

I think you are dead on. I always took 30 year and paid like it was a 15. Just security. I do not think that I ever had a mortgage over 5 years. They have to take the additional principle. When I lived in a farming community, I set up an annual payment. I paid my mortgage once a year in March when I closed out my year. My last mortgage payment was with Wells Fargo. I was paying from a Wells Fargo account to a Wells Fargo account and they wanted me to wire it. I was in no hurry why the wire fee? I went to the branch manager and he shook his head and wired it at no charge. I have had good experiences with banks but not always. Some people like the Swiss are strait forward with the rules and never seem to ding you but get outside of first world banking look out.
In the early 90's it was costing 15-20% to wire money to Hungary. I started taking 100k a trip and some months went twice to pay bills. I banked with Commerce Bank of Canada at the time and if I gave the local branch 2 days they had no problem with the cash.

 

[Spacehead]

About the mortgage payment:

There are all kinds of agreements. All kinds of fine print. If you do not ask, as I do with every loan I take, if there are any restrictions or penalties on paying the loan off early or make additional payments, then this could be something. .

I seemed to recall in the past i've heard of some types of loans that had restrictions on paying off early. I definitely ask about that when getting a loan of any type.

When I would make “over payments” (extra payments) to my mortgage, they were required to be done in 2 separate transactions. Likely this person needs to find the option for extra or additional payments.

That could very well be. I'll mention it to him.
He wasn't overly concerned about this & i assumed he would follow up with the lender. This was just the catalyst getting the talk of loans going. Which led to the CC question.



About the CC payment:

The only thing I can think of is that she used one of those installment loans that the credit card companies are now hawking, which may or may not allow you to pay off the amount early (vs pay a fixed monthly amount for x number of months). It would be very strange that they would not allow you to pay more each month though (although you often have to indicate that you want to use the extra amount to pay down principle, vs simply pay forward the payments / minimum interest. Most credit cards now default to going directly to the principle when you overpay, however you don't have to make that your standard.

All he said was that his mother pays for almost everything with a CC then pays it off each month. I took it as that's the way she's been doing it for awhile. He made it sound like all of a sudden last month the CC Co. changed their policy & would only let her pay the minimum.
He was claiming that a lot of companies do this now... not allow you to make over payments... only allow minimum payments. This was news to me. I even said to him, like Dank did above in post #6, "that can't be legal!" He just shrugged & said that's what's happening.

Again, i know he talks out his ass some times & this could very well be one of those times. I'll see if he can shed some more light about this.

 

[pauldun170]

He was claiming that a lot of companies do this now... not allow you to make over payments... only allow minimum payments. This was news to me. I even said to him, like Dank did above in post #6, "that can't be legal!" He just shrugged & said that's what's happening.

Again, i know he talks out his ass some times & this could very well be one of those times. I'll see if he can shed some more light about this.

All I'm getting out of this thread is that one guy doesn't know how to use an app on his phone or the institution he uses simply has a crappy phone app.
A normal man who is not an idiot would have tried on the website next and if that failed called up the bank after finding out the cheat code to talk to human beings.

The other guy is one of those dumbasses who has to jump in with a "I heard a thing from a someone without fucking clue" and potentially a loser who still lives with his mother.
My assumption is that you work with simpletons, bullshitters and wannabes

The rest of the world pays off whatever the hell we want to pay off whenever we want to pay off.

Also his mother has gambling problem and is on meth. The credit card she is having problems with is nothing but a business card for the painter down the street.
That's what I heard.

Tell these fucknuts to join these forums.
I'd like to have a word with them.

 

[JEDIYoda]

The only thing I can think of is that she used one of those installment loans that the credit card companies are now hawking, which may or may not allow you to pay off the amount early (vs pay a fixed monthly amount for x number of months). It would be very strange that they would not allow you to pay more each month though (although you often have to indicate that you want to use the extra amount to pay down principle, vs simply pay forward the payments / minimum interest. Most credit cards now default to going directly to the principle when you overpay, however you don't have to make that your standard.

Don`t worry about it you`ll be just fine , they cannot limit how musgh you pay...opps how much your friend pays,,,,,

 

[Captante]

Don`t worry about it you`ll be just fine , they cannot limit how musgh you pay...opps how much your friend pays,,,,,

 

[Scarpozzi]

Most of the situations that I've seen where a mortgage won't allow you to make an extra payment is that the payments are limited to be $X dollars + extra on the principal in one payment. When I try to make an additional, separate payment in less than that amount, I cannot. However, if I make a lump sum payment $500 more or whatever, it will apply. It's just a protection some payment systems add to keep people from making partial payments as that would be more difficult for them to enforce late fees, etc on the deadbeats.

 

[Spacehead]

Just a quick follow up...
The guy trying to pay extra on his mortgage said it was the app that wouldn't allow it & hasn't called support about it yet.

The guy talking about CC... he won't offer any more info than what i have in my OP. So i'm assume he's talking out his ass again about this.


Case closed as far as i'm concerned. I just wanted a second opinion about his claims about CC. Thanks guys.

 

[Exterous]

Just a quick follow up...
The guy trying to pay extra on his mortgage said it was the app that wouldn't allow it & hasn't called support about it yet.

The guy talking about CC... he won't offer any more info than what i have in my OP. So i'm assume he's talking out his ass again about this.


Case closed as far as i'm concerned. I just wanted a second opinion about his claims about CC. Thanks guys.

Case isn't closed until we've beaten the dead horse excessively!

I've had probably 20 different credit cards in the last 2 years and have never run into this so even if it were true it's easy enough to get one that doesn't

 

[Spacehead]

Case isn't closed until we've beaten the dead horse excessively!

I've had probably 20 different credit cards in the last 2 years and have never run into this so even if it were true it's easy enough to get one that doesn't

Yeah, i said the same thing to him.