Why is the bank still charging a finance charge if the account is closed?

I am still paying on the card to pay it off. The account was closed almost 2 months ago and I am being charged almost a $30 finance charge every month. How can I get ahead like that? I haven't even charged on the card in the last 2 years. It doesn't seem fair that they are charging a finance charge.

Why is the bank still charging a finance charge if the account is closed?
Just because you closed the account does not stop the interest due. You still owe them the money and therefore, there are still interest charges. Closing the account just stops any new purchases or cash advances from going through.
Reply:When you applied for the card you agreed to the terms of the card. Even after you close the account it is not "closed" until the balance is paid off.





So yes ALL fees and interest would still apply. The rates that apply are the ones that were in effect at time you requested it closed. You will be continued to be charged interest at that rate until the account balance is zero. Once that happens your account is officially closed. But just be aware that other fees apply also. So if you are ever late they can still charge you a late fee. IF you decide to stop paying they can then also turn you over to a collection agency.
Reply:The terms of the agreement was probably a lower % but once you


defauled on agreement the card will increasde to 28-30% depending


on the creditor, and each month that you are behind the minimum


payment will double or triple until you get back on track, also


adding finance, interest and overlimit fees. This is how banks make


their money, I closed mine 6 months ago, the amounts that I owed


were almost double because of other fees, but once theyre charged


off, and sold to collections then you have a chance at settling the


debt for less money, so you did good by closing the accounts, now


if you dont plan on paying or cant pay then you should plan on having


bad credit from 7-10 yrs. I dont this its unfair that their have


finance charges, its a way of doing business and if people like us


dont know how to handle our finances its better not to have credit or


credit cards what is unfair and illegal is that these credit card


companies will give you a credit card knowing that a person is not


even working, I wasnt owrking when they gave me a 20000 increase


in one credit card, they dont do background checks, I think.


If they did they wouldve seen me as a liability, thats why the US is


in a mess right now with mortgages and credits. They extended


loans to people who didnt qualify for it. So its half and half their


fault and the taxpayers. If you know you cant afford the home whait


till you can. So now were all in a pickle.


Good luck!!!
Reply:As long as you still owe a balance, you will be charged interest. Whether the account is in "open" or "closed" status doesn't change that. Welcome to the real world.
Reply:I guess you might have thought closing the account will mean a free loan. No wonder people get in credit trouble.

tanning