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Credit Card Double Cycle Billing

A method used by creditors, usually credit card companies, to calculate the amount of interest charged for a given billing period. Doublecycle billing takes into account not only the average daily balance of the current billing cycle, but also the average daily balance of the previous period.

A Sopranos loan shark couldn’t think of this stuff.


Double cycle billing charges credit card holders interest on the unpaid balance as well as the balance that was paid on time.  Consumer complaints about this practice, and other credit card fees, has led to Congress outlawing this practice.

Credit Card Double Cycle Billing OUTLAWED by Credit Card Accountability, Responsibility and Disclosure, or CARD, Act of 2009.

The powers that be got angry, thankfully.

The Bankers Complain…


No surprise, banking industry representatives are upset at these types of laws, complaining in The American Banker that the term “abusive” is too vague:

That means institutions cannot engage in types of behavior that “materially interfere” with a consumer’s understanding of product terms or that take “unreasonable advantage” of a customer’s limited knowledge.

What’s a banker to do?  They complain about the lack of predictability, which leads bankers to not know which activities will be targeted by regulators.  The quotations seems almost sarcastic, as if there has been no history of “unreasonable advantage” over consumers in the consumer lending field.


Benjamin Saul – fighting CFPB regulations. Axsmith Law Blog.

To many, the idea of “abusive” is pretty clear.  It would include foreclosing on properties with forged documents, lying to mortgage holders about the terms of the loan, double cycle billing on credit card debt, filing false financial information to get consumers OK’d for a mortgage, etc.

Antonin Scalia said that good people can have bad ideas, so we are giving you the benefit of the doubt, Benjamin.

If you are having problems with credit card debt, debt relief, debt settlement, or bankruptcy, phone Axsmith Law LLC at (202) 285-5415.



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