I’m a Banking Expert: Here Are 3 Ways To Effectively Negotiate Late Fees
Written by
Cara Danielle Brown
Edited by
Cory Dudak
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So, you missed a credit card payment and got saddled with a late fee. Most people have been in this position at one time or another, be it accidentally or otherwise. From here, it becomes a matter of whether to pony up the extra money, or figure out a savvy way to negotiate down or — better yet –completely eliminate that late fee.
GOBankingRates spoke with Ashley Morgan, debt and bankruptcy lawyer and owner at Ashley F. Morgan Law, PC, to find out how to get rid of those pesky late charges.
If You Have a Good Track Record, Just Ask
“The most typical way a credit card company may waive a late fee is if it is your first one on the account or the first one in a few years,” stated Morgan. “A courtesy removal for the first late fee is typical, especially if you are a long-time customer.”
In other words, it quite literally pays to have a reliable history of on-time payments. If that missed payment is an anomaly, simply pick up the phone, apologize and offer to make the minimum payment on the spot. More than likely, the late fee will be removed.
Morgan cautioned, however, that if you’ve been with the credit card company for less than six months and don’t yet possess a good track record, this courtesy removal will be harder to come by.
Appeal to Emotion
If your record of on-time payments is not as stellar, removing a late fee gets more complicated. That’s when it’s best to remember you are speaking to another human being on the other end of the phone — so try appealing to emotion.
“If a specific life event like a job loss, death in the family, car accident, etc. caused the missed payment, you may be able to get sympathy,” stated Morgan. “Explain the situation and be willing to provide some proof.”
Don’t forget, presentation is everything: since the company is under no obligation to remove the late fee, Morgan advised staying calm and courteous to help your chances; presenting as demanding and entitled may hurt you.
Be Proactive
This one involves a bit of foresight. If you know ahead of time that your paycheck hasn’t cleared yet and you are going to be missing a card payment, “calling the credit card company to move your payment date, skip the payment or lower the minimum payment can be easier than asking for forgiveness after the fact,” stated Morgan.
Staying diligent and on top of the problem prior to it occurring gives the appearance of wanting to work with the credit card company. This, in turn, makes them much more willing to try and work with you.
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