Penny's credit account

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.

Wow! That sounds like it should be against the law! Contact the BBB and ask them. You shouldn't be penalized for paying your credit card in full.

I work for JCP - I've dealt w/ many customer's credit cards & myself have a JCP card. I've never once heard of what you're describing. When dealing w/ a customer's JCP card & calling the credit center, I often ask to speak to a supervisor as they can often better explain the situation. I know many customers who charge & turn around to pay their bill in full w/o issue. I wish I had a better answer for you.

I did have what you're describing happen to me w/ my Visa credit card. I got charged interest for paying my balance in full off every month!

That is ridiculous! Is it a new policy? I understand when credit card companies do stupid stuff like that because they make money off your interest paid. Sheesh! I'd do the same thing!

Originally Posted by white cat lover

I work for JCP - I've dealt w/ many customer's credit cards & myself have a JCP card. I've never once heard of what you're describing. When dealing w/ a customer's JCP card & calling the credit center, I often ask to speak to a supervisor as they can often better explain the situation. I know many customers who charge & turn around to pay their bill in full w/o issue.

I wish I had a better answer for you.

I did have what you're describing happen to me w/ my Visa credit card. I got charged interest for paying my balance in full off every month!

Click to expand...

I don't know.....I just saw it on my statement as a Minimum Interest Charge. And when I called, that's the answer I received. I did ask to speak with a supervisor......and there were no supevisors available to talk to me at that time. That's what I was told. From what they're saying or from I'm gathering, this is a new fee? I never took notice to it before.

I talked to my sister last night as she has a Penny's card. She looked at her statement while I was talking to her. We had been shopping together that day and she made some purchases as well. She, too, was charged $1.00 for the same Minimum Interest Charge. She called in and pretty much got the same reply. She tried to cancel her card, but with an outstanding balance (of $1.00), they wouldn't cancel it until it was paid. We're going down to the store tonight, both of us.

I know it's only $1.00. But it's also the principle of the thing, too. Darn it.

With the new banking rules and regulations credit card issuer's need to come up with new revenue generating ideas. This is one of them. I've heard that us "good" customers that pay off credit cards every month are going to have some fees. ATM fees are going up, some banks need a minimum number of transactions in your checking account and the list continues.

I better start to use more cash!

This is common, these days, especially since the much-vaunted changes in the credit laws last summer.

Credit cards have always seen those who pay their bill in full monthly as "leeches." They view it as borrowing money for nothing. If your card has a yearly fee, that's not so bad. There is a fee paid by the retailing, maybe something like 1%, and I would consider a 12% return on your money pretty good, but I'm not a bank.

I've canceled all of my store credit cards, and only have my Visa for emergencies. My checking account/debit card (and Visa) are all through my credit union. There are several surcharge free ATMs here in town that are affiliated with the credit unions...and I don't believe you need to be a CU member to use them free of charge.

Oh yeah, they just love getting that interest every month, it really sucks.

I've paid my Mastercard in full a few times and was never penalized for it.

We use a credit card to buy everything during the month. That includes doctors, meds, bills, gas, groceries. We pay in full every month. I have never been charged for paying it in full every month.

I've never been penalized so far for paying off a credit card in full, but I'm going to be keeping my eyes on the statements. I think its just plain robbery to charge for being a good customer. Wouldn't they rather have their money back right away than have to get it in dribs and drabs? I guess not as long as they can gouge for the interest payment.

The other thing is the amount you have to pay to do a balance transfer. If you stop and actually do the math, its usually just as cheap or cheaper to stay with the original card and pay the interest than to pay the 3% or 4% of the balance you're transferring.