Many in society have likely been afftected by Bank credit card and corporate credit card procedures and practices that artifically create interest charges on user accounts even when payments have been promptly made. The issue is whether the credit card providers are deliberately delaying the posting of payments in order to apply interest charges.
As an example consider the following:
The credit card holder has a clean account with no outstanding charges. A major purchase is made resulting in several hundred or thousand dollars in charges. According to the typical payment schedule, the credit card holder is expected to pay the minimum or the full amount by nth day of the billing month. The credit card holder mails payments in the form of cheque, one week in advance of the due date for the entire amount. The payment arrives at the credit card holders payment centre within 2-3 days of the mailing and 2-5 days before the payment is due. The credit card company reviews the payment and rather than posting the payment to the account, delays the posting for 1-4 days after the due date. The result is an automatic charge to the users account for interest charges.
As the banks move money electronically the payment could have been registered at the time it was received by the credit card provider. The posting delay is unreasonable and contrary to the interests of the credit card holder but definitely to the financial advantage of the credit card issuer.
Is there a basis for a general class action against the banks on the behalf of all credit card holders of the specific credit card provider or all credit providers engaging in the practice?
