Missed A Credit Card Payment Due Date? Know How You Will be Charged

Paying the credit card bill on time should be on everyone's priority list. Failing to do so can have implications like penalty charges, high-interest rates or a drop in your credit score.

While many of us may already be familiar with these consequences, we still tend to miss the credit card payment due date because of multiple factors ranging from a month-end cash crunch to any emergency. 

If you, too, have missed the deadline to pay your credit card dues, then, as per the Reserve Bank of India's (RBI) guidelines, the credit card issuer can declare your account as 'past due to credit information companies (CICs).

This will be done if the amount remains unpaid for more than three days from the due date. In addition, the issuer can also levy a penalty charge or late payment fee. 

The RBI directions state that the issuer must calculate the number of 'days past due' and the penalty charges from the payment due date, as mentioned in the credit card statement.

In addition, the penal interest or late payment charges are levied only on the outstanding amount that the credit card holder has failed to pay and not on the total amount.

A credit card issuer can change these charges only after giving the credit card holders a prior notice of at least a month.

Moreover, if you feel that the charges levied by the issuer are not desirable, you can choose to surrender your credit card after paying all dues. In such cases, the issuer cannot levy any extra charge on you for closing the credit card account.

When you apply for account closure, the issuer must process your request within seven working days as per the RBI mandate.

If the issuer fails to complete the closure process within the mentioned period, it is liable to pay you Rs 500 per day as a penalty for the delay until the credit card account is closed.