Is this Legal

[Joyce Anderson]

Jurisdiction

Illinois

I have a Elan credit card and have a question on how they are doing my interest.
They are taking the interest on my balance owed for this month, debiting my credit card the amount I would owe on the balance for this month, back to the credit card, which is than included in the amount I would owe next month and adding interest on the than balance.
I feel this is charging interest on the interest.
Is this legal and if not what can I do about it? Thank you.

 

[adjusterjack]

What you've written isn't making any sense without numbers, balances, dates, interest rates, etc. In other words, without reviewing your credit card statements all I can say is that whatever they are doing is legal if they are doing it in accordance with your cardholder's agreement which is your contract with Elan that you bound yourself to when you used the card.

 

[Betty3]

You need to read your agreement/contract with the credit card co. - it governs.

 

[army judge]

I have a Elan credit card and have a question on how they are doing my interest.
They are taking the interest on my balance owed for this month, debiting my credit card the amount I would owe on the balance for this month, back to the credit card, which is than included in the amount I would owe next month and adding interest on the than balance.
I feel this is charging interest on the interest.
Is this legal and if not what can I do about it? Thank you.

Many people are complaining about the same concerns you have expressed:


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http://www.ripoffreport.com/r/Elan-...an-account-then-immediately-lowered-my-475546


Elan Credit Card Review: Should You Be Using Them?


What is Elan Financial and why is it on my credit report? | Credit Karma




Elan Cardmember Service
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To reach Cardmember Service via email, login to your account and click on Messages.

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[Joyce Anderson]

What you've written isn't making any sense without numbers, balances, dates, interest rates, etc. In other words, without reviewing your credit card statements all I can say is that whatever they are doing is legal if they are doing it in accordance with your cardholder's agreement which is your contract with Elan that you bound yourself to when you used the card.

What they are doing is compounding the interest and this is not in my card holders agreement.
10/26/15 10/26/15
INTEREST CHARGE ON BALANCE TRANSFERS
$2.60
10/26/15 10/26/15
INTEREST CHARGE ON PURCHASES
$107.44
This interest on Octobers Bab\lance was debited back to my Credit card/Elan. SO the this increased my balance owed to my Credit Card/Elan, It increased by the amounts stated above. They are NOW charging interest on my total amt owed which includes the interest stated above. This is Compound interest.
I hope I am making myself clear.

 

[Joyce Anderson]

COMPOUND INTEREST
TheLaw.com Law Dictionary & Black's Law Dictionary 2nd Ed.
Interest allowed upon interest; for example, when a sum of money due for interest, is added to the principal, and then bears interest. This is not, in general, allowed. See Interest for money.
Law Dictionary – Alternative Legal Definition
Interest upon interest, i.e., when the interest of a sum of money is added to the principal, and then bears Interest, which thus becomes a sort of secondary principal.

 

[army judge]

TN has no law preventing one being charged compound interest.

What I find disturbing more than anything else about this is the way you describe the MACHINATIONS in their interest computation ritual involving YOUR debit card being utilized by these charlatans.

If your credit agreement says otherwise, I suggest you file an official complaint with the TN state agency listed below that oversees such matters.

Is the Interest Rate Simple or Compound?
I sought and subsequently found an answer at a list of definitions in the Tenn. Code Ann. §47-14-102.

2010 Tennessee Code :: Title 47 - Commercial Instruments And Transactions :: Chapter 14 - Interest Rates Generally :: :: Part 1 - General Provisions :: :: 47-14-102 - Definitions.

The sixth definition in the above code informs us of the effective interest rate:
"as the simple rate of interest being that ratio between the interest payable on any debt and its principal over any period of time, to include the result of compounding said interest, discounting, adding on, or other nominal rates of interest into simple rates of interest."

If you have reason to believe a financial institution in Tennessee has violated state law with respect to interest rates, you may file a complaint with the Tennessee Department of Financial Institutions.

See more at:

Tennessee Interest Rates Laws - FindLaw

Tennessee Usury Laws | Usury

LendingKarma Blog – State Usury Laws – maximum legal interest rates