finance charge vs. interest paid

#7 01-20-2007, 07:32 PM

I think that in the period in question, (1990's?) the Supreme Court said
they cannot limit interest. Hence the 30+% 'default' rates now seen.

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:eht$EGMPHHA.4424[at]TK2MSFTNGP06.phx.gbl...
- quote -

> Further aside, I would have thought it was the other way around. States
> routinely limit interest (usury laws they are called). So I would have
> expected banks to try and end run that and call lots of ways to get money
> service charges rather than interest. I would have expected the states
> were more likely to sue to prevent this.

#6 01-20-2007, 05:31 PM

Further aside, I would have thought it was the other way around. States
routinely limit interest (usury laws they are called). So I would have
expected banks to try and end run that and call lots of ways to get money
service charges rather than interest. I would have expected the states were
more likely to sue to prevent this.

"Chris Cowles" <spam_magnet[at]remove-me-bellsouth.net> wrote in message
news:%236RecVLPHHA.4172[at]TK2MSFTNGP03.phx.gbl...
- quote -

> As a side note, some federal court years ago declared that service charges
> on credit cards were interest (which they are). The point was that states
> were prevented by law from imposing interest limits, but were not
> prevented from limiting 'fees'. Banks sued to get the 'fees' declared
> 'interest', and won.

#5 01-20-2007, 05:23 PM

I think what several of us were missing was that the choices we were
discussing were Interest Paid as in something like Investment Income:
Interest as in an Income and Finance Charge as in something like Interest
Expense:Credit Card or Miscellaneous:Service Charges/Fees as in an Expense.

"Chris Cowles" <spam_magnet[at]remove-me-bellsouth.net> wrote in message
news:%236RecVLPHHA.4172[at]TK2MSFTNGP03.phx.gbl...
- quote -

> As a side note, some federal court years ago declared that service charges
> on credit cards were interest (which they are). The point was that states
> were prevented by law from imposing interest limits, but were not
> prevented from limiting 'fees'. Banks sued to get the 'fees' declared
> 'interest', and won.
> "Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
> message news:%234S0u0%23OHHA.960[at]TK2MSFTNGP04.phx.gbl...
> > Semantics and what they think makes the customer feel better about it.
> > Some disclosure law approved words or other may also be at play. Either
> > way, you are paying to rent their money.

#4 01-20-2007, 04:06 PM

As a side note, some federal court years ago declared that service charges
on credit cards were interest (which they are). The point was that states
were prevented by law from imposing interest limits, but were not prevented
from limiting 'fees'. Banks sued to get the 'fees' declared 'interest', and
won.

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:%234S0u0%23OHHA.960[at]TK2MSFTNGP04.phx.gbl...
- quote -

> Semantics and what they think makes the customer feel better about it.
> Some disclosure law approved words or other may also be at play. Either
> way, you are paying to rent their money.

#3 01-20-2007, 04:49 AM

"Mark" <abcd[at]abcd.com> wrote in message
news:O7tUraCPHHA.2312[at]TK2MSFTNGP04.phx.gbl...
- quote -

> That's mainly geared toward other types of accounts
> For example a savings account or a checking account that pays interest,
> but also has some finance charges/fees.
> -Mark

ok, that makes more sense ...

#2 01-19-2007, 11:05 PM

That's mainly geared toward other types of accounts
For example a savings account or a checking account that pays interest, but
also has some finance charges/fees.

-Mark

"Theorbo" <reply[at]to-group.nfo> wrote in message
news:91259436-7B67-41C3-8C8F-88A4F7DFA332[at]microsoft.com...
- quote -

> "Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
> message news:#4S0u0#OHHA.960[at]TK2MSFTNGP04.phx.gbl...
> > Semantics and what they think makes the customer feel better about it.
> > Some disclosure law approved words or other may also be at play. Either
> > way, you are paying to rent their money.
> Thanks, it just seems odd to me that Microsoft would take the space and
> time to show BOTH when balancing an account - I can't imagine the scenario
> when someone would balance their credit card account and enter both
> INTEREST PAID and FINANCE CHARGES.

#1 01-19-2007, 09:32 PM

"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:#4S0u0#OHHA.960[at]TK2MSFTNGP04.phx.gbl...
- quote -

> Semantics and what they think makes the customer feel better about it.
> Some disclosure law approved words or other may also be at play. Either
> way, you are paying to rent their money.

Thanks, it just seems odd to me that Microsoft would take the space and time
to show BOTH when balancing an account - I can't imagine the scenario when
someone would balance their credit card account and enter both INTEREST PAID
and FINANCE CHARGES.

01-19-2007, 04:13 PM

Semantics and what they think makes the customer feel better about it. Some
disclosure law approved words or other may also be at play. Either way, you
are paying to rent their money.

"Theorbo" <reply[at]to-group.nfo> wrote in message
news:F09FD756-39BC-422E-9E4D-63913F9FE7E1[at]microsoft.com...
- quote -

> when balancing a credit card account I am presented with the option to
> enter finance charges &/or interest paid. I've always entered the charge
> to carry a balance as "interest paid" but on my credit card statement it's
> listed as "Finance charges" ...
> is this just semantics or is there some tax or other significance to the
> two options?

#-1 01-19-2007, 02:23 AM

when balancing a credit card account I am presented with the option to enter
finance charges &/or interest paid. I've always entered the charge to carry
a balance as "interest paid" but on my credit card statement it's listed as
"Finance charges" ...
is this just semantics or is there some tax or other significance to the two
options?

as always, thanks.

Similar Threads
Thread	Forum	Replies	Last Post
Additional Loan pmt messes up total interest paid Loretta: Hopefully I have enough detail without flooding you with trivia. Money 2006 standard edition Advanced register I set up a car loan a while...	Microsoft Money	1	06-03-2006 12:57 PM
Credit card finance charge Henry: I don't know what I could categories for my credit card finance charges	Microsoft Money	2	02-16-2006 02:31 AM
Home Equity Loan - Interest computed on a 365/365 simple interest basis Kathleen Anderson [MVP - FrontPage]: I recently took out a Home Equity Loan with Bank of America and set it up in Money 2004. The first payment was taken by auto-debit a couple of days...	Microsoft Money	11	10-21-2005 03:45 PM
Reports only using Interest paid for its calculations? DRUAngell: I've been using Money since Money03...I'm using Money 05 now. I've got a very simple financial life and I've never really tried to use any of...	Microsoft Money	5	11-21-2004 04:08 PM

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode