Imagine this: you have a balance on your credit card that you haven’t paid for many months and you’ve noticed that the credit card company has stopped sending you statements. Hmmm… Does this mean your debt has been forgotten or forgiven by your credit card company? The answer is most likely “no” – keep reading to find out why!
Normally, credit card companies are obliged to keep you informed about the status of your debts by sending you monthly statements of your accounts. However, under a certain set of circumstances, the credit card company is allowed to stop sending you monthly statements. This is when you’re in arrears (default) with the payments and ALL of the following circumstances apply:
- You haven’t made a charge or payment on your credit card during the preceding month
- Your account has been suspended or cancelled by your credit card company
- The credit card company has demanded payment of the amount owed
If you’re not getting monthly statements, it’s important to remember that you still owe your credit card company for the debt that’s still on your account. In fact, if your agreement with the credit card company requires for you to pay interest on the outstanding balance, you’ll continue to accrue interest on the total amount you owe. That means if you have a high-interest credit card (say, 29.9%), the total amount you owe could grow by more than 33% during a 12-month period – ouch!
If you are in a situation where you cannot make payments on your credit card, you may consider contacting your credit card company to see if you can negotiate a way to deal with the debt.
We hope this information was helpful!
ADDITIONAL READING:
Thinking about hiring a credit repair company?
How to get a free copy of your credit report
Getting calls from a debt collector?
Can BC Hydro charge me a late fee even when the balance is paid in full?
Hi Trond — Thanks for the question. Late or default fees are only allowed in three specific circumstances. Check out this blog post we recently wrote to see if any of them apply to your situation: http://www.consumerprotectionbc.ca/blog/item/294-are-late-payment-or-default-fees-legal
Are credit card companies legally obliged to keep you informed of the balance of your card? It seems I have been paying interest for 6 years with no statement, it’s an old forgotten card and I only discovered this when trawling through all my bank details. I thought I was an insurance policy. X
Hi Clb, thank you for your comment. Normally, credit card companies are obliged to keep you informed about the status of your debts by sending you monthly statements of your accounts. However, under a certain set of circumstances, they are allowed to stop sending you monthly statements. You may want to contact your credit card company directly to see why you haven’t been receiving statements for the last 6 years.
I have a credit card I have had for years. They have quit sending me a statement. I have called several times to see why. I used to get one every month. They verify my address & say they sent one. I was told they did not have a site set up to pay online. I always called it in before but now when I call to pay, they charge $10.00 to take my payment. I just want a statement so I can mail it in because I’M m not paying to $10.00 for them to take my payment. I ask for copies of the last 2 months statements & I cot them in the mail. I just want my current statement in time to mail it back in time so I won’t have to pay a late fee. What can I do?
Hi Phyllis, thank you for posting your question. In your case, you may want to contact the credit card company again to see if they would be able to send you monthly statements. Also if your credit card is issued by a bank or a credit union, you may want to contact the FICOM (Financial Institutions Commission) and see if they would be able to assist you with this. Their website is here – http://www.fic.gov.bc.ca/
I hope this information is helpful to you.
What can you tell me about this POS system?
http://posminnesota.com
Is it reliable? Can I use it in my business?
The repetitious answer “contact your credit card company” is useless when the card issuer is the Problem.
I know that 4 of the missing stmts directly relate to Fraud activity on my acct from the card issuer.
Who do ya call then?
Hi Rhonda, thanks for your question. If you believe the credit issuer is the problem and have not been able to work it out with them directly, the Financial Consumer Agency of Canada can help resolve disputes for certain issues involving banks/credit card companies. You can learn more here: https://www.canada.ca/en/financial-consumer-agency/services/complaints.html