From my snail mail today:
Effective 17 April 2011, the introduction of the concept of "liquidated damages" replacing the term "Late Payment Fee".
If you do not pay the full closing balance by the due date on your monthly statement, you are in default and you agree that we may charge you Liquidated Damages as specified in the Financial Table on any overdue amount. Liquidated Damages may themselves be included in a future closing balance in any subsequent statement until paid in full.
Liquidated Damages will be charged on the overdue amounts at three percent (3.0%) or $20, whichever is greater.
As at 1 June 2011 - Main cardholder is responsible for supplementary card.
Ends
I must admit, this kills the attractiveness of the card because:
1. Charge Card is supposedly 55 days interest free. My statement indicates only 44 days. Usually, balances are payable without interest/penalty as long as paid before the next statement is issued, this time, it hits you the moment it goes past 44 days.
2. This is clearly a law avoidance (from 1 July, late payment fee is abolished??) attempt by renaming late payment fee as "liquidated damages" which is the same terms used in CARE or Wilson Car Park.
3. Interest is now effectively 3% of balance owing per month as opposed to 20% pa. If you happen to forget, that $3 per $100 is going to hurt big time. Very costly for an innocent oversight. That 3% per month is equivalent to at least 36% pa (but by stealth since they don't mention 36% anywhere).
4. Penalty is hit PER MONTH instead of usual once.
Like to hear you guys opinion...
Effective 17 April 2011, the introduction of the concept of "liquidated damages" replacing the term "Late Payment Fee".
If you do not pay the full closing balance by the due date on your monthly statement, you are in default and you agree that we may charge you Liquidated Damages as specified in the Financial Table on any overdue amount. Liquidated Damages may themselves be included in a future closing balance in any subsequent statement until paid in full.
Liquidated Damages will be charged on the overdue amounts at three percent (3.0%) or $20, whichever is greater.
As at 1 June 2011 - Main cardholder is responsible for supplementary card.
Ends
I must admit, this kills the attractiveness of the card because:
1. Charge Card is supposedly 55 days interest free. My statement indicates only 44 days. Usually, balances are payable without interest/penalty as long as paid before the next statement is issued, this time, it hits you the moment it goes past 44 days.
2. This is clearly a law avoidance (from 1 July, late payment fee is abolished??) attempt by renaming late payment fee as "liquidated damages" which is the same terms used in CARE or Wilson Car Park.
3. Interest is now effectively 3% of balance owing per month as opposed to 20% pa. If you happen to forget, that $3 per $100 is going to hurt big time. Very costly for an innocent oversight. That 3% per month is equivalent to at least 36% pa (but by stealth since they don't mention 36% anywhere).
4. Penalty is hit PER MONTH instead of usual once.
Like to hear you guys opinion...