Old timers will fondly remember the time - half a century ago - when firms that issued monthly accounts often provided an incentive to pay early. It was not unusual for such accounts to carry a notation offering a discount - " less two and a half percent if paid within seven days ".
That simply does not happen anymore. In fact, one of the banks is now imposing a penalty on customers who pay their credit card payment early !
Late fee payments - anything from $ 35 to $ 50 - have long been imposed by the banks but it seems that the Scrooge mentality is now suggesting that the " Due payment date " is merely a " window of opportunity " that extends for only a short time prior to that date.
Of course, this is totally illegal - as is the usurious charge for late payment. The banks are entitled to recover their costs - which amount at most to a few cents - and are engaging in a huge bluff when they impose a fee which can only be considered a punitive measure.
The principle has now extended to other merchants. Bills from newsagents, milk vendors and similar traders often carry a small late payment penalty. This is not enforceable by law but simply continues the bluff perpetuated by the banks - and the crazy thing is that the vast majority of the public just shrug their shoulders and do nothing !
This latest act of banditry - a fee for early payment of credit card debts - needs nipping in the bud. Interest is charged the longer the debt remains - and all citizens have the right to terminate that debt at any time.
If the government - both Federal and state - fails to act to curb this latest attack on the back pockets of customers then their claim to act always in the public interest is proven to be just another political lie !
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