[greycrx87]

On 09/10/2009 I bought $4,200 worth of appliances, they had a promo LOWES/GE credit card no interest for 12 months, as of last month I had $2,800 balance and sent a check for $1,000

Today I received a new statement and it had $1,089 of deferred interest added and my balance is still $2,800

I went back and read the fine print: if the promotional balance is not paid in full within the promotional period, interest will be imposed from the date of purchase at a rate of 22.99%

I don't know how I missed that but man I AM SO PISSED OFF right now...

what is my chance of fighting this over with them...the promo was 12 months... Advice???

[LACSTER]

It's accured interest. You're still paying it if you go over the promo period that why you plan your payments to be paid off within the time frame. Sorry bro!

[radix]

Buying things other than a house on credit is usually a bad idea. Pay cash for everything. I realize this advice is too late. Sorry you got taken.

[O-cha]

Originally Posted by greycrx87

On 09/10/2009 I bought $4,200 worth of appliances, they had a promo LOWES/GE credit card no interest for 12 months, as of last month I had $2,800 balance and sent a check for $1,000

Today I received a new statement and it had $1,089 of deferred interest added and my balance is still $2,800

I went back and read the fine print: if the promotional balance is not paid in full within the promotional period, interest will be imposed from the date of purchase at a rate of 22.99%

I don't know how I missed that but man I AM SO PISSED OFF right now...

what is my chance of fighting this over with them...the promo was 12 months... Advice???

That's how they all are.

I'm actually angry you failed so hard because you are just proliferating their doing this.

[khaye1]

you only benefit from deferred interest loans if you pay the balance within the specified amount of time...consider it an expensive lesson because there's no fighting this one, fine prints are a bitch

edit: forgot to ask what your statement cycle was.

[greycrx87]

and tonight I was gonna buy winter tires for my car...NOT

[greycrx87]

it was 12 months....

[BTM]

Originally Posted by greycrx87

what is my chance of fighting this over with them...the promo was 12 months... Advice???

None. You signed that you agreed and understood what the contract explicitly told you - you did not. Live and learn

[Jet335i]

how did you NOT know that? that's how all these promo credit cards work that advertise no interest for X months - the second that month is over, you get bent over with retroactive interest...

[JayKay335i]

You're helping keep GE Financial in business.

[DougLikesBMW]

Originally Posted by radix

Buying things other than a house on credit is usually a bad idea. Pay cash for everything. I realize this advice is too late. Sorry you got taken.

I thought things like this were obvious.

OP got boned hard.

[greycrx87]

I will swallow this one and move on...but never again bull shit promos and credit cards...

this will be my second most expensive lesson learned, first being buying my condo at the peak...worth 45% less now.

[O-cha]

Originally Posted by radix

Buying things other than a house on credit is usually a bad idea. Pay cash for everything. I realize this advice is too late. Sorry you got taken.

Originally Posted by DougLikesBMW

I thought things like this were obvious.

OP got boned hard.

They aren't obvious, in fact if you have money it's very poor advice.

Not in the OPs case, but using credit often makes people with money more money.

[BMW F22]

That happened to me once. I forgot which company it was. Basically I talked to them and they cut it down to half or so. Just tell them that nobody mentioned it and that they should have made it in big prints. Threaten that you will do everything within your power to fight it and ask to speak to a manager.

[greycrx87]

Originally Posted by BMW E90

That happened to me once. I forgot which company it was. Basically I talked to them and they cut it down to half or so. Just tell them that nobody mentioned it and that they should have made it in big prints. Threaten that you will do everything within your power to fight it and ask to speak to a manager.

i will give it a try, thx

[scollins]

We almost always buy big ticket items at Lowe's, Best Buy, etc. with the "0%" interest options, but we pay it off two cycles before the accrued interest hits. That gives us one "cushion" cycle in case something stupid happens with the payments being posted. But if you can manage your money/payments properly, why not use their money interest free for 12, 18 or 24 months?

The problem is, as the OP has learned, is that not paying off the balance in time yields a huge accrued interest hit. But that is something that is disclosed in the terms and conditions.

So the rule is: Buy stuff using their money interest free for XX months, but DON'T FORGET TO PAY IT OFF IN TIME!

[radix]

Originally Posted by O-cha

They aren't obvious, in fact if you have money it's very poor advice.

Not in the OPs case, but using credit often makes people with money more money.

No, it's good advice even for those who have money. Using credit to make more money often works out badly (e.g. margin lending/trading). Considering that nobody is capable of predicting the market, margin loans can just as easily exacerbate losses as they can increase gains. Diversification can of course help mitigate the risk, but nothing is certain. What is certain is that you are subjecting yourself to losing a portion of your portfolio, and you will be paying a not insubstantial interest rate on that loan, which may or may not be offset by ROI. Not worth the risk for most people IMO.

In our conservative view every nonprofessional who operates on margin should recognize that he is ipso facto speculating, and it is his brokers duty so to advise him.

-- Benjamin Graham, The Intelligent Investor

Taking out a loan on a house or a business is a better way to borrow. Student loans are another decent way to borrow, because a promising career could be seen as an investment. Credit cards are nothing more than a horrible way to get yourself into debt.

[O-cha]

Originally Posted by radix

No, it's good advice in most cases. Using credit to make more money often works out badly (e.g. margin lending/trading). Considering that nobody is capable of predicting the market, margin loans can just as easily exacerbate losses as they can increase gains. Diversification can of course help mitigate the risk, but nothing is certain. What is certain is that you are subjecting yourself to losing a portion of your portfolio, and you will be paying a not insubstantial interest rate on that loan, which may or may not be offset by ROI. Not worth the risk for most people IMO.

Taking out a loan on a house or a business is a better investment to me.

Sorry but you have no idea what I'm talking about, which isn't surprising since it's complicated and specific. The difference is you were making a very broad generalized statement which in some cases is very wrong (as they almost always are) and I was simply pointing that out.

The specific case I am talking about is a person with a very low relative cost basis on their investments would be much smarter to not remove money from those investments and incur the associated costs. It compounds when you consider the loss of potential and the loan saves you money.

[JayKay335i]

My GE stock went up today

[samwoo2go]

try to talk to corporate financial branch vs your local store. They have more say and Im pretty sure if you put up a good fight, they will at least lower it for you. plead with them and be nice first. IF that doesn't work, threaten with going to the press and filing BBB complain and scam boards. Then threaten small claims law suit. you are probably going to lose since you signed the contract, but they might think that they will have to pay more than a grand for the attorney to go to court for them and just cut their lost.

But in the end, if they don't budge, tough shit. You are the dumbass for not reading the fine prints, and this trick (I don't even think it's a trick anymore) is so damn old.

Lesson learned.

[radix]

Originally Posted by O-cha

Sorry but you have no idea what I'm talking about, which isn't surprising since it's complicated and specific. The difference is you were making a very broad generalized statement which in some cases is very wrong (as they almost always are) and I was simply pointing that out.

The specific case I am talking about is a person with a very low relative cost basis on their investments would be much smarter to not remove money from those investments and incur the associated costs. It compounds when you consider the loss of potential and the loan saves you money.

OK, I can see that, but that hypothetical would still depend on the ROI/ROR/gains (whatever you want to call it) for those shares/commodities/investments that make up the sum corresponding to the amount of the loan outpacing the APR on the loan over the loan period. Costs and taxes would have to be factored in as well of course, as you suggest. Depending on the predicability of said ROI and the APR of the loan it may or may not be risky to take the loan. Ultimately, this would have to be calculated on a case by case basis which I think is what you mean by "it's complicated and specific". I guess in the end I can see how the costs associated with liquidating assets with a very low cost basis could potentially make it worth taking out the loan.

[FStop7]

lets say you bought 5000 bucks worth of stuff with this 12 months same as cash thing.

if after 12 months you still owed 100 dollars, do you get hit with interest for just that amount or do they hit you with the deferred interest of the full original amount of 5000?