How to get a late payment fee waived

You’re always on time, always organized – this kind of thing never happens to you. But between working and studying and packing for that next weekend getaway, you’ve been hit with an unexpected surprise on your credit card bill: a late payment fee.

 

Late payments are one of the most common mistakes made by Canadian credit card holders. While the consequences of one late payment may not seem so bad, (just a few bucks, right?) if you let one payment slip-up turn into two missed payments and then three, your credit card issuer will take notice and the repercussions could be severe. If you go down that slippery slope, you’ll not only be stuck with a fee (ranging from a few bucks to $25), you’ll also face an interest rate hike and a blow to your credit score.

 

The good news? One missed payment most likely won’t affect your credit score if you take the right steps to remedy the situation. As it turns out, many issuers are willing to forgive your first late payment if you have good credit history. But make no mistake – getting one late payment waived doesn’t give you a free pass to start missing payments left and right.

 

 

Kyle Prevost, co-author of More Money for Beer and Textbooks and host of a podcast of the same name, has heard plenty of stories about late credit card payments. And although he hasn’t been stuck with any himself, Kyle’s learned a thing or two from all those first-hand accounts. When I asked if he could pass along his best advice on the subject, Kyle had four nuggets of credit card wisdom to help out a late fee first-timer.

 

 

Although it can seem daunting, the only way to actually get that fee waived is by picking up the phone and making the call to your issuer. Prevost explains that you – the cardholder – are much more valuable to your issuer as a credit-card-using customer, than as a former customer who they got an extra few dollars off of on a late payment.  

 

“Don't be afraid to use that leverage!” he adds. “Credit card companies will almost always give you a free pass the first time you're late if you ask firmly enough.”

 

Still, you can have the right attitude and make the right phone call, but if you aren’t armed with the right script when it comes time to plead your case, then you’ll have a much harder time getting that pesky fee erased. That’s where Kyle’s second piece of advice comes in handy.

 

 

“Get past the first line of defense as quickly as possible,” says Prevost. “It is a virtual guarantee that the first person you talk to won't be able to reverse the late penalties on your credit card bill.”

 

But, as with most things in life, persistence makes all the difference.

 

“After listening to their initial pitch and their attempt to stall you, carefully explain that you received a credit card offer in the mail from a competing company... and since you do not feel your needs are currently being met as a result of this late fee, you will immediately be cancelling your credit card and switching to the other card in question.”

 

If you’re like me, and aren’t too skilled with this level of assertiveness, this may seem an almost impossible task. But most of the time, it’s simply the only way to get rid of that credit-damaging late payment.

 

“Words like ‘leaving’ and/or ‘cancelling’ are often needed to get you to someone that can actually help you,” adds Prevost.

 

 

When you’re sitting there with the phone to your ear, listening to that corny “hold” music, it can be tempting to abandon ship. Kyle Prevost has an easy fix for this – don’t let yourself get restless.

 

To keep yourself occupied, “make sure that you have a book with you or another activity that you can pleasantly use to pass the time as you inevitably sit on hold ‘due to unusually high call volumes.’ This way, you won't be tempted to quit twenty minutes in,” explains Prevost, “as you think about what you could be doing instead.”  

 

When you actually begin talking to someone, remember – be polite yet firm.

 

“No matter how frustrated you get, don’t hang up, or resort to profanity,” he adds. “If all else fails, just keep repeating yourself: your needs are not being met.”

 

 

His last piece of advice is a good thing to keep in mind throughout the entire late fee forgiveness process.

 

“Remember that getting that late fee repealed is worth it,” explains Prevost. “Oftentimes those late fees can impact your credit rating, and that means increased borrowing costs down the road, in addition to whatever the late penalty was.”  

 

The best thing you can do as a credit card holder is stay on top of your payments, and avoid those damaging late fees altogether. But sometimes, life happens, and a payment date slips by unnoticed. When it does, keep these guidelines in mind as you’re listening to that corny “hold” music, getting ready to fight that fee.