After being a loyal Penny's customer for years and years (and years), I closed my account with the company this afternoon.
Why? A few weeks ago, I bought underwear at Penny's. I used my card to buy the underwear because of a good deal to cardmembers only. Then I immediately paid the card off right at the same time.
I received my statement and was charged $1.00 fee as a Minimum Interest Charge. I called the company and was told that because I paid the account right away, they charged me $1.00. I asked if that meant that I was essentially being penalized for being a good customer and keeping my account paid. They wouldn't agree, but yeah, that's pretty much what it is. Had I left the account go, not paid it off right away and paid payments, I wouldn't have had the fee. Oh and once the account's balance goes below a certain amount, the fee kicks back in.
In other words, I charged about $125 for underwear. But I paid it right then and there; I was only using the card to get the deal. I was charged $1.00. Had I left the balance go and made payments, once the account got below $100, I would have been charged $1.00 every month til it was paid off, in addition to the regular interest rate.
Total fees charged in 2011 - $1.00
Total interest charged in 2011 - $0 (I always pay in full right away, so there isn't any interest)
I told them to kindly cancel my Penny's account, hung up, and put my cards through the shredder. I think it sucks that companies feel the need to nickel-and-dime us to death.
Why? A few weeks ago, I bought underwear at Penny's. I used my card to buy the underwear because of a good deal to cardmembers only. Then I immediately paid the card off right at the same time.
I received my statement and was charged $1.00 fee as a Minimum Interest Charge. I called the company and was told that because I paid the account right away, they charged me $1.00. I asked if that meant that I was essentially being penalized for being a good customer and keeping my account paid. They wouldn't agree, but yeah, that's pretty much what it is. Had I left the account go, not paid it off right away and paid payments, I wouldn't have had the fee. Oh and once the account's balance goes below a certain amount, the fee kicks back in.
In other words, I charged about $125 for underwear. But I paid it right then and there; I was only using the card to get the deal. I was charged $1.00. Had I left the balance go and made payments, once the account got below $100, I would have been charged $1.00 every month til it was paid off, in addition to the regular interest rate.
Total fees charged in 2011 - $1.00
Total interest charged in 2011 - $0 (I always pay in full right away, so there isn't any interest)
I told them to kindly cancel my Penny's account, hung up, and put my cards through the shredder. I think it sucks that companies feel the need to nickel-and-dime us to death.
I wish I had a better answer for you.
