Comments on: And I Thought Credit Card Fees Were Bad… http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Canadian Capitalist http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21763 Canadian Capitalist Sun, 25 Feb 2007 03:06:48 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21763 Bill: Thanks for the info. I don't know if I'll be going to court but my councillor is going to hear from me for sure. Bill: Thanks for the info. I don’t know if I’ll be going to court but my councillor is going to hear from me for sure.

]]> By: David http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21365 David Thu, 22 Feb 2007 05:13:47 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21365 # Mike Says: February 20th, 2007 at 9:35 am David - that is the same thing. The “10% off” is the regular rate and the “regular rate” is really a 11% late charge. Then should I look at supermarket sales in the same way? The coupon price is the "real" price and list price is a penalty? The reduction is an encouragement to pay early, and adds some moneys to the town coffers half way through the year. As for perception, you see many folks paying their water tax early, while waiting until the last minute to pay their annual municipal bill. Thus I'd have to agree with 'Gettingrichtogether'. David # Mike Says:
February 20th, 2007 at 9:35 am

David – that is the same thing. The “10% off” is the regular rate and the “regular rate” is really a 11% late charge.

Then should I look at supermarket sales in the same way? The coupon price is the “real” price and list price is a penalty?

The reduction is an encouragement to pay early, and adds some moneys to the town coffers half way through the year. As for perception, you see many folks paying their water tax early, while waiting until the last minute to pay their annual municipal bill. Thus I’d have to agree with ‘Gettingrichtogether’.

David

]]> By: Bill http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21276 Bill Wed, 21 Feb 2007 07:47:27 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21276 You might want to look into that further. There was a court case a few years back where Bell Canada was doing the exact same thing (charging interest AND a late fee) to customers who paid late. The court held that the late fee was a form of interest, and the combined interest rate (fee + interest) amounted to usury. It is illegal in Canada to charge an annualized rate of interest greater than 60%. The charge of $8.50 for being one month late is an interest rate of 83%. Enbridge Gas was slapped down in a similar case: http://scc.lexum.umontreal.ca/en/2004/2004scc25/2004scc25.html I'm not a lawyer, but it's pretty open & shut. You might want to look into that further. There was a court case a few years back where Bell Canada was doing the exact same thing (charging interest AND a late fee) to customers who paid late.

The court held that the late fee was a form of interest, and the combined interest rate (fee + interest) amounted to usury. It is illegal in Canada to charge an annualized rate of interest greater than 60%. The charge of $8.50 for being one month late is an interest rate of 83%.

Enbridge Gas was slapped down in a similar case:
http://scc.lexum.umontreal.ca/en/2004/2004scc25/2004scc25.html

I’m not a lawyer, but it’s pretty open & shut.

]]> By: Eric http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21209 Eric Tue, 20 Feb 2007 14:13:25 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21209 In that case, I'm getting huge discounts from my credit cards by paying my bill every month! 30% Savings! Who needs to invest with rates of return like that! In that case, I’m getting huge discounts from my credit cards by paying my bill every month! 30% Savings! Who needs to invest with rates of return like that!

]]> By: GettingRichTogether.blogspot.com http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21206 GettingRichTogether.blogspot.com Tue, 20 Feb 2007 13:37:34 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21206 Perception is the key. In that case the customers blame themselves for not taking advantage of the discount, in the Ottawa case you are upset they charged excessive fees. Perception is the key. In that case the customers blame themselves for not taking advantage of the discount, in the Ottawa case you are upset they charged excessive fees.

]]> By: Mike http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21205 Mike Tue, 20 Feb 2007 13:35:51 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21205 David - that is the same thing. The "10% off" is the regular rate and the "regular rate" is really a 11% late charge. David – that is the same thing. The “10% off” is the regular rate and the “regular rate” is really a 11% late charge.

]]> By: David http://www.canadiancapitalist.com/and-i-thought-credit-card-fees-were-bad/#comment-21171 David Tue, 20 Feb 2007 05:17:19 +0000 http://www.canadiancapitalist.com/2007/02/20/and-i-thought-credit-card-fees-were-bad#comment-21171 Our town manages it a bit differently. You recieve a 10% discount on your annual water & sewer taxes if paid on time, and pay interest once in arrears. Since the Town Office is just a few steps from the Post Office, many taxpayers just drop by upon receipt of the invoice. I love small towns! Our town manages it a bit differently. You recieve a 10% discount on your annual water & sewer taxes if paid on time, and pay interest once in arrears. Since the Town Office is just a few steps from the Post Office, many taxpayers just drop by upon receipt of the invoice.

I love small towns!

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