Missed a credit card payment? Ask for a late fee refund.
Though I try my very best to always pay everything exactly on time, there have been a few times in my life where I've just forgotten to schedule a payment.
(I suspect this happens mostly when I've forgotten to click on the umpteenth confirmation screen during the payment process...)
Anyway, it's a dreadful feeling to see a late fee notice, especially when you're at a financial point where $25 is an enormous sum of money.
Since I have a history of paying my full balance on time every month, when I've missed a payment, I call and ask for mercy.
And every instance in the handful of times I've done this, the company has refunded me my late fee as a courtesy.
Of course, the best option is to never miss a payment (automatic payments for the win!), but since most of us will trip up at some point, here are a few tips to increase the possibility of success when you try to get a late fee refund.
1. Pay the bill (except for the late fee) online before you call.
If you pay the balance as soon as you realize you missed a payment, the company will be much more willing to work with you. Even better: pay, wait for your payment to show up as credited to your account, and then call.
2. Point to your good payment history.
If you've missed a bunch of payments before, they're probably not going to work with you, but if you normally pay your bill right on time, point that out. It's definitely something they look at when considering a fee refund.
If you do have a less than stellar payment history, they might still be willing to at least reduce the fee. It's worth asking!
3. Do be super polite/Don't be demanding.
For the record, I have never tried being rude and demanding, but my assumption is that you wouldn't get far that way!
I prefer to be very polite (Really, that's the best option any time you call anyone!), and I try to take responsibility for missing the payment, acknowledging that a refund is not something I'm owed but is rather a merciful move on the part of the company.
So, I've said something like, "Hi! Somehow, I missed making my usual timely payment and I've just realized this. I'm so sorry! As you can see, I paid my balance online, and I was wondering if, given my history of on-time payments, you might be able to give me a one-time courtesy adjustment for the late fee."
The reps will probably take a minute to look over your account, and if all is well with your history, they should be willing to give you a refund.
And be sure to thank the customer service rep for the refund because that's just nice.
So, if you get a credit card late fee, don't assume that you absolutely HAVE to pay it. Calling usually only takes a few minutes, so you don't have a lot to lose if they say no (unlikely anyway!) and you have a fair amount to gain if you are successful.
(For the record: I use credit cards to earn cashback rewards, I pay the balance in full every month, and I never buy anything I wouldn't be able to pay for with cash.)
Good tip! And I am extremely thankful for automatic payment options since getting things paid on time is not my strong suit.
I've done this a handful of times and have also had success asking for the late fee back. I started forgetting to pay after I had children--my mind was just too many places. So I also signed up for auto payments.
Like you, I've always got those small charges reversed from the bank/credit card companies when I ask. They will work with you if you have a good payment history. Last time I missed a payment though I don't think I called. I think I was trying to make a point to myself or something so that it NEVER happens again! My bank is changing their payment process soon, so hopefully I won't need to push 12 confirmations anymore (that's what usually gets me too)
Every time you schedule a payment and the scheduling process is fully completed, the company will issue you a confirmation number.
I don't know how you keep track of your finances (I use Excel and You Need a Budget but Excel is my primary way of "balancing" my checkbook and maintaining my budget), but I have trained myself to ALWAYS copy the confirmation number and paste it next to my payment in my Excel spreadsheet. I also change the status from a "Pay online" (in red) to "PAID" (in green) in a different column and note the date when it will be paid. Those visual clues let me know that I have indeed completed the process. Plus, if there is a problem, I have quick access to the confirmation number. I've never had a problem, though.
I don't use automatic payments for credit cards, I much prefer to handle the payments manually. I also pay off all our balances every month and reap the rewards with various credit cards. For that reason, I also ALWAYS choose "payment due date" as the date when the payment is to be applied because why give them my money sooner than they actually require it?
Yep, "ya get more flies with honey" is something that I often say to my children along with "all they can do is say no." I'm a huge believer in asking for mercy particularly if one is not a repeat offender. Part 2 of this is accepting a negative response, as in not getting requested mercy, gracefully. Sometimes policy is policy, and there's nothing to be done for it.
So true. I suppose you do get your way sometimes when you're really demanding, but I would imagine your success rate would be lower.
It depends on the circumstance. If the goal is something they owe you, then demanding can work. (But start out by being nice. It usually works, it's easier on all involved - sometimes they give it to you just because you're nice when so few are - and you can switch to demanding if you have to. But you can't switch from demanding to pleasant.) But if you're asking for a favor, such as being forgiven a fee you rightfully owe, then your only recourse is to be nice.
Not only do I agree with every suggestion the FG posted (hardly unusual) but I don't have any other suggestions to add. Well, maybe a modification: you can also offer a reason why you missed: someone's mentioned new baby, another mentioned confusion because it's a new card, or that you were ill, or even just had a brain burp. Any of these things makes you more human and the missed payment more understandable, and thus the forgiveness more likely.
Yeah, that's how I operate when I am actually owed something. I start out gently, but if necessary, I am politely insistent and have no qualms about asking to speak to a supervisor.
Having been on both ends, I do think the nice thing is really important too. Especially because by being nice and requesting an exception to the rule, you're giving the customer service rep an opportunity to do something nice and be helpful, sort of empowering them. That goes a long way in giving them the motivation to help you out. And I can only imagine, customer service reps can probably use all the motivation they can get. 🙂
Just to add to this, I recently called on a brand new credit card that I hadn't even made the first payment on yet. I had a late fee due to moving and misplacing a lot of bills. I wasn't sure if they'd do anything but I explained I had moved and they removed the fee! I think in general the customer service reps are trained to just make the customer happy. I'm sure a lot of people just pay the late fee without calling and so they don't mind removing them for the few that do call.
I've done this before, too. I get prepared to do battle, in a nice way of course, and the wind is knocked out of my sails by a very friendly customer service rep who makes it all better! Score one for staying on top of things and being a reasonable human! A good pay history is crucial and does work in your favor (:
Yes! Wise words. This also works for late phone charges, etc. Not that that happens often for me, but you know, I'm human. 🙂
I think the bigger message is - you don't receive if you don't ask. I'm not confident enough yet to do the 'nice guy' discount ask - ie. where people just ask all the time and have gotten some great deals. But for this sort of thing, why not.
Awesome advice. This has worked for us on overdraft fees too. It never hurts to ask!
The other thing to remember (at least in Canada) is that once you have a late payment, you have to pay interest on all your purchases for the next two months. Your interest-free grace period is suspended for the next billing cycle after one late payment. You have to be careful because the interest can be way more than $25. This is a sort of sneaky rule that was brought in about 3 years ago, and is hidden in the fine print in a lot of credit card agreements.
Yes! This is the same in Australia. I always pay my bill in full and pay no interest, but one month due to the timing of my paycheck and some other banking transations, I decided to pay the last $300 of my CC a few days late, assuming it would only be interest on that amount for the few days it was late. I didnt' realise that if I didn't pay in full, I was liable for interest for the whole month, plus also the next month of charges too.
When I rang the bank to query, it was **them** that offered to reverse all the charges and reinstate the interest free period. That was about 8 years ago. I have accidentally been late one other time, but I just rang up and politely requested the same and got it.
Key is - a) track record of full payments on time b) polite.
I work on commission so i can't always pay off a credit card each month. I set up automated payments for $500 every month (so no late payment charges). As soon as i get a commission check, i pay it off in full.
Early on, barely into my twenties and before the proliferation of pay online, I forgot to mail the check with my credit card statement. I didn't realize my mistake until the following month, when a late fee appeared and I found the check, never torn from my checkbook (doh!). I thought there would be no chance of a credit card company taking pity on someone like me, but they considered my year or two of on-time payments enough of a history to waive the fee (and the interest, too, since I'd always paid in full)! I was impressed and thankful. It's always worth a shot.
Yes! I've called before--if you are usually a good customer, they are more willing to help you. Just don't make a habit of it!
So true! Being polite to the customer service representative really works. Couple times,I sent them an email first and asked to waive any late fee because life happens when we get super busy or my internet isn't working,I missed to pay my bill and gladly they waive those late fees.I always point out how good customer we are and looking back on our history we never been late before and paying that amount really hurts to the pocket.
I am thankful and blessed to be able to say that it has been a really long time since I have missed or been late on a credit card payment. But I'm definitely not perfect, I have been late in the past and have had to make the call to my credit card company to ask for late fees to be waived. I must agree that courteous and polite goes a long way in how you are treated by people from the credit card companies or anyone offering you service for that matter. For that reason, I always make it a habit and personal commitment to treat others like I would want to be treated. I must say that life is much easier to navigate when your surrounded by nothing but nice and helpful people. 🙂
AFFJ
Great advice! If the credit card company offers secure online messaging through your account, you might even be able to skip a phone call! I sent a message once asking for forgiveness and the fee was refunded right away. We have an excellent payment record and use our cards regularly, so I think that helped.
Ooh, that's a good idea. I would much rather message than make a phone call.
Thanks for the tip. I sometimes forget too and never thought to ask!
Thanks for the advice. I'm 30 and should know how credit cards work, but I still make mistakes.
This is a great tip and one I often share with everyone I know whose missed a payment. I love advising people to do their best to have a steady track record of on time payments so that they can request to up their credit limits which improves their debt-to-credit limit ratios and the potential to improve credit scores.
Be Frugal, Stay Fancy, Get Fit - That's my motto, hehe. Thanks for being an inspiration to many, including myself. I'm new to blogging so I look up to big blogs like yours
Frugalfancyfit.com
Kristen, how late after the missed payment does this technique work? If I find it in my credit report after a few months, and pay my account current, can I get them to waive the fee?
I'm not sure how successful you will be after a few months. I mean, it's always worth a try, because the worst they can say is no. But you'll be a bit less likely to get a yes after a few months have gone by.
Thank you for this!!! After my one and only missed Citibank payment (I've had a perfect streak--and great credit--for 4 years), they redeemed the $25 late fee in a 15-minute conversation. I was staring at this article while talking to the representative, who even said that they'd refund the interest charge without my asking!
The bank didn't even issue me a warning. I was only emailed 3 days AFTER the due date! (I paid that day and called them within a week.) So I've just set up recurring automatic monthly emails--for free at SendRecurring--instead of autopay, so that I can still verify all of the charges before paying.
One more thing: I only engaged in rudeness with the automated system, since it took at least five tries of shouting "Representative!" at the robots before their Siri stopped asking me for menu choices and finally let me wait for a real human on the raspy Muzak line.