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Roger, Attorney
Category: Legal
Satisfied Customers: 31561
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I had a zero interest loan with Chase Health Advance and I

Customer Question

I had a zero interest loan with Chase Health Advance and I made my last payment on the loan balance 12 days late so I was charged the accrued deferred interest in the amount of $2,124.83. In reviewing my monthly statements there is language in regular size font that states the following: "If we do not receive your minimum payment by the date listed above, you will have to pay up to a $39 late fee and your APRs will be subject to an increase APR 22.99%." I do not, however, believe that this put me on notice that I would be responsible for all the interest. Moreover, the one-page authorization form that I signed when I took out the loan from my dentist-- I signed under the medical provider section and not the account holder section. I already paid off the balance of the loan and the late fee. Can I fight this? I am a NY resident.
Submitted: 6 years ago.
Category: Legal
Expert:  Roger replied 6 years ago.

Hi - my name is XXXXX XXXXX I'm a litigation attorney here to assist you.


The late fee language is not likely where the interest they're charging you is coming from. All "12 month no interest" loans I've ever seen have a provision in the agreement that says if the entire balance is not paid in full by the end of the interest-free period, all interest that has accrued (been deferred) on the account during the 12 months will be assessed to the account. You need to see whether or not the agreement has such a provision.


If not, you can fight it. If there is such a provision, however, you're going to be responsible for this accrued interest.

Customer: replied 6 years ago.
the one-page invoice that i signed states: "Each Account Holder is authorizing the "Amount Financed indicated below to be charged to the ChaseHealthAdvance Revolving Account and acknowledges that, by giving authorization, they are agreeing to be bound by the terms and conditions of this Invoice and the Revolving Payment Agreement and Disclosure Statement, a copy of each of which, completely filled in, has been provided to each Account Holder by the Provider at or prior to the time of signing this Invoice. I have read the ChaseHealth Advance Revolving Payment Agreement and Disclosure Statement."

the acount holder signature line is right under the above language. as i mentioned in my first post, I signed this invoice, but I signed under medical provider and not under the account holder section. also, I didn't receive any other documents from my dentist. I only received a copy of the one-page invoice.

in addition to the foregoing, i'm trying to figure out if there are any mitigating factors that Chase is required to consider. Paying over $2K for making a payment 12 days late does not seem reasonable or just. Maybe there are NY laws where there are mandatory grace periods that banking institutions must follow??? Thank you.
Expert:  Roger replied 6 years ago.

If you missed the deadline to pay by 1 day, the lender has a contractual right to charge the interest. I agree with you that the lender could give you some grace days or give you a break, but the contract is the contract, and there's no law that is going to require the lender to waive this interest under any circumstance. No court is going to disturb the provisions of the contract.


However, if there is some document you didn't sign that says you agree to pay this accrued/deferred interest, you may have a legal claim to challenge this. If nothing else, it may be a good bargaining chip to settle this debt for an amount less than what they've assessed to you.

Edited by Kirk Adams on 2/1/2011 at 12:41 AM EST