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Forfeit Interest Free Period Purchase Interest or Forfeit Interest Free Period And Pay Interest On Each Purchase From The Purchase Date means, as explained in Chapter 3, some Credit Card Issuers under Four-Party Schemes - (a) deny the usual Interest Free Period on Purchases from the date of Purchase for up to three consecutive months if a Credit Cardholder that holds the Credit Card Issuers' Credit Card failed to pay its entire Closing Balance for the previous month by the Payment Due Date; and (b) charge interest at the interest rate applicable to Purchases from the date of each Purchase for the month of those Purchases and for up to the following two months on all Purchases.
For most of the 55+ years existence of Credit Cards, the Credit Cardholder paid Interest on that part of the Total Amount Owing that was not repaid by the Payment Due Date. If the Total Amount Owing was $500 and the Credit Cardholder repaid $400 by the Payment Due Date, the Credit Cardholder was charged Interest on the $100 until the remaining $100 was repaid. And then the Interest Free Period was re-instated. Almost all Credit Card Issuers have moved from the former interest charging model of charging interest on any shortfall until repaid, to charging Interest on all Purchases if the Total Amount Owing is not repaid by the Payment Due Date, even if the payment was 'a dollar short or a day late'. Some Credit Cards also cancel the Interest Free Period for up to two subsequent months, if the Total Amount Owing is not paid by the Payment Due Date, which means that if a Credit Cardholder failed to pay the Total Amount Owing in the third month, he/she could forfeit their Interest Free Period for five months; many Financially Uneducated And Vulnerable Credit Cardholders have so forfeited - see Example 1.
Credit Cardholders with poor Financial Literacy Capacity are much more prone to Forfeit Interest Free Period And Pay Interest On Each Purchase From The Purchase Date which can spiral into accelerating Outstanding Indebtedness and Extreme Financial And Emotional Distress; this Spider is invariably not noted in advertisements, nor included in the Key Facts Sheet, rather concealed in the Terms & Conditions document up to 90 pages in tiny 9 font in dark grey text - see Example 1. See: * Clause 18.1 "Interest charges on purchases and our fees" of St. George Bank's "Conditions of Use - Credit Guide as explained in Example 1 - Unconscionable Conduct - St George Visa Card * Material Interest And Fees which quantifies the amount of interest and fees paid over a three year period to qualify as an Eligible Plaintiff.
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