Released: January 26, 2007

Even small credit card error can cost big bucks

Source: George Gombossy, Hartford Courant

Rounding off to the nearest dollar is encouraged by the IRS, but as David Norton learned, lopping 15 cents off a credit card payment can prove very expensive.

Norton, a New Britain hypnotist, is not known for his precision with family finances. As a longtime friend of the family, I can testify to that.

However, when it came to his low-interest AT&T Universal Card, Norton knew that a late payment would have consequences.

He had made sure to mail in his November payment in plenty of time to protect the 9 percent fixed rate and avoid a late-fee penalty on a card he has held for several years.

But he was stunned when he opened his AT&T statement to discover that the rate had skyrocketed to more than 32 percent, and he had been hammered with a $39 late charge.

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