ATTENTION: HSN Card Holders
Several of us have confirmed a change in policy with Commenity Bank (the issuer of HSN’s cards) regarding avoiding interest charges on your HSN cards. (There is a thread on the Customer Service Forum.)
You must now “pay your balance down to a $0 balance on your statement due date” or you will be charged interest. This is not the same as paying the balance of your statement by your due date. You now must pay the balance of your statement PLUS any charges that hit your account between your last statement date and your due date.
This is especially concerning re: flex pays since it means that flex pays are, in essence, no longer interest free. Worst case scenario: My due date is the 27th. If a charge hits my account on the 26th and I don’t pay it on the 27th, I will be charged interest. That is totally ridiculous.
I and several others have chosen to cancel our HSN credit card accounts and change the method of payment on our remaining flex pays. Unless HSN decides not to allow flexpay without an HSN Card, the only thing I’ve lost is the extra flex they sometimes offer and the ability to isolate my HSN purchases on a single card. The rewards they offer on the MasterCard are nowhere near as good as the rewards I get on my other cards. Flexpay for me is a convenience. I know it is a necessity for some of you (and the HSN card may also be your only available card), but you need to be fully aware of what will happen if you are using the HSN card with your flexpays.
NOTE: Quote in paragraph 2 is from Brittney at Comenity Bank.
That is sad. My close date is the 19th. I will call on Mon. and ask if interest was charged. If so, no more HSN for me.
Hi Tutti499, desertdweller4 and KELSCUDDLES. It all boils down to “wait and see.” There have been so many spins on just what the terms really mean and that’s why I’m going to monitor my account until I see my next statement.
Friday I called Comenity and asked if I owed any interest since I made my payment on the day the statement closed. The rep I spoke to put me on hold (my guess is she checked with a supervisor) and when she came back she said no. I wrote down her name / date and time of call and we shall see.
It’s all really sad and sneaky greedy!
I honestly don’t understand the policy. Will you be charged interest if you don’t use flex pay and pay your card off each month? If I am charged interest on my next bill, I will definitely cut back spending on HSN.
This would explain why my own calculated payments were so way off.
I’m still confused though. I have to buy on flex pay.
Suppose that during one show, I buy some items on flex pay, 5 flex pays, two item.
I’m charged the day of the sale for flex 1-A and flex 1-B.
My revolving charge date is two weeks later, and receive the bill for two items, two flex.
Then during the ten day period of receipt of HSN card bill, I purchase two more items on flex.
C and D. I am charged for flex 1-C and 1-D. I assumed that these charges would be interest free
and show up on the next statement BUT that isn’t the case?
I must not only send in the charge statement 1-A, 1-B, plus the amounts charge in the period AFTER I received my bill, 1-C and 1-D and pay all 4 (first flex amounts) at statement due date, even though items C and D were not on the statement, or I pay interest charges on C and D if not paid off on bill due date? Is this accurate? Some months I have purchased 10 items on flex pay, with 5 or 6 purchased AFTER I recieved the bill for the first 4 or 5. If that is true, no wonder my calculations have been WRONG.
Anyone feel like reading my post and assessing my interpretation? Thanks in advance.
If I have this right, the ONLY way to keep a clean card is charge items on flex every other month to keep card interest free or just charge in one period and keep card clean until all the flex pays are finished. OR, pay whats due PLUS the flex pays you were charge in the interim from bill received to bill due date?
Thanks for this thread and for any responses!
This appears to be a no grace period policy for purchases on the HSN card managed by Comenity Capital. The initial purchase statement balance and account balance are the same payment amount the first month. Any additional purchases will accrue daily interest fees if not paid in full. This is the change? My statement this year up to April always stated Pay statement $ XX.xx to avoid paying interest. Starting in May the instructions changed to pay full balance to avoid paying interest. So far I have not been charged interest. My understanding is that these new procedures were rolled out in August. Many of us have called Comenity HSN Care and we have been told many different responses. It is not federal law to have a grace period on credit cards, but changes need to be handled to inform customers.
Hi All. Here’s my take on this, but first I want to give a special Thank You to Lizzie818 for starting this post. I was not aware of this credit card agreement update until I recently visited here. I’ve been reading all your posts and all have been very informative. I took the opportunity to call Comenity Bank and spoke with a very helpful representative. I had a current balance of $125 on my Meijer card and I asked him what happens when I pay that $125 amount in full when I get my August statement (which I normally receive by the 17th of each month). He kindly informed me that I would be billed interest on my September statement for carrying the balance past the closing date. It’s referred to as “Trailing Interest” or “Residual Interest.” He also added that many companies are doing this, but the attention seems to be magnified because Comenity is one of the biggest to jump in.
Honestly, I could not get the big picture, so after I finished talking with the rep, I moved my remaining HSN flex pays to a different card, paid off my Comenity Meijer card and will no longer deal with them. This year was the time I decided to use my HSN store card for convenient flex pays on quite a few items, and now the bottom has fallen out of that convenience. Later, I started searching the web for more info and found some interesting articles that helped me better understand what the rep was saying.
Here’s an excerpt from an article that I found online that pretty much says what the customer rep I spoke to said:
“- Say you’ve been paying down a balance for several months and your credit card statement, dated the first of the month, says that your balance is now just $1,000.
– When you read that statement, you’re excited because you know that you have $1,000 in savings that you can use to pay down that balance.
– You send in your $1,000 check to the issuer on the fifth of the month, rejoicing in having finally paid off your credit card and hiding the card in a desk drawer.
– The issuer applies the payment to your account on the 10th of the month.
– Next month, you receive another statement saying that you currently hold a balance of $7.23.
– That $7.23 is residual interest. In this example, it is the amount of interest that was charged to your account between the first of the month and the 10th.
Even if you pay your credit card bills online you can be caught off guard by residual interest, Sherry says. Cardholders who access their account online to make sure their full payment has been received by the due date would see a zero balance, because the trailing interest isn’t added until the close of the subsequent billing cycle.”
So my understanding is that if my closing date is August 16 (which mine was) and I did not pay the current balance in full on that closing date, then on August 17 I just carried that balance over one day which starts the interest cycle and interest will continue to be added on with each day that passes. I monitored my HSN card everyday since that phone call and once that statement posted closed on the 16th, I paid it off. This whole thing is unbelievable and with all the different explanations for what it’s all about, I will continue to monitor these 2 cards until it’s all over (I hope) with my September statement.
Today, I received the email notifications that my statements were ready for HSN and Meijer and there are no interest charges on them. This is already 2 days after the closing date.
If you are interested in reading the full article that I took the excerpt from, search for “The ABCs of credit card residual interest.” This article is at creditcard (dot) com and was last updated June 17, 2016. Also, at the end of this article is a “See Related” paragraph with a link to 2 additional articles that might be of interest, though they are a bit older in date. (1) Common tricks and traps in the credit card fine print, and (2) Why interest charges remain after a card is ‘paid off’. Another article on a different site is: “Why Your Credit Card Isn’t Really Paid Off: How Residual Interest Works.” This article is dated April 27, 2016.
Thank you, Kyle!
Comenity Capital Bank did make some changes to their Grace Period Policy on your HSN Credit Card. If you have questions or concerns regarding your billing statement or account balance please contact their Care Center at 1-888-724-6649. They will be happy to assist you.
moved to end of thread by Ladyamara.
Thank you, Kyle.
I checked my HSN Card and there was no notice in either large or small print on any of my statements going back to the last 12 months that there would be interest charged on flex pay. I assume if there are changes then it is the bank’s responsibility to notify customers. There is also a disclaimer by HSN in the flex pay section that they cannot control interest payments if the bank so desires to change that policy. This is not the correct statement the way it reads. You all should check this area. Also, since I did not complete the reading of the bank’s disclaimer at this time, cannot vouch for this new policy. Will do so when construction work ends for the day.
OODIEBOM, I had an HSN MasterCard, I found the notice on my 6/1 statement (in fairly large print) buried back on page 3 or 4 of my statement. It doesn’t say anything about flex pay. This is not a flex pay issue. This is an issue affecting any charge made to the card.
OMG!! I’d have never known if my TV hadn’t just self destructed!
I was awakened by what sounded like a small plane landing in my bedroom!
No, just my gorgeous TV!
I’m not certain what happened but it’s all busted up, it’s freaking me out, now I’m seeing how
once again, rip off city where cards are concerned! Jeepers!!!
Maybe the change has to do with the merging of QVC and HSN?
I think I’ll just stick with AMAZON.
This isn’t right.
BonBon, It’s only the HSN credit cards that are a problem. If you use a different credit card, with different repayment terms, you won’t have any issue.
FYI Someone did post someplace back in this thread that Amazon does the same thing with their Visa card (not their store card).
I just spoke with an hsn suppervisore about this zhe told me that one””” commenity cant cbarge us intrest on HSNS FLEX PAYS be for hsn sumite them to commenity and two”” it’s il’legal for commenity to do because they have no authority over HSN’S flex pay’s. The flex pay dont delong to commenity bank HSN owns the flex pays so another words, the flex pays dont come from commenity, they come from HSN. If commenity does try it”” they will go to jail. somone in the bank will go to jail. The hsn suplervisore said it’s not going to happen. I hope this helps you put this to eas.
shunshine, no one is saying that Commenity is charging interest on flexpays that have not been submitted to them. What is actually happening is that you now have to pay your full balance down to $0 on your due date or you will be charged interest. That means that if you buy something on flexpay (or any other way for that matter) and you don’t pay for that first flexpay or other purchase by the next normal due date on your account, you will be charged interest on it.
Little FYI- Merchants choose what companies they want to accept credit cards from. They pay a processing fee to the credit card company & then get any perks the credit card company may offer.
It’s just like your dr or surgeon who may accept some insurances & refuse other insurances because they find that one insurance company will not pay them much for their services so when it’s time to renew their contract the drs can decide to no longer participate with the same insurance companies. Same with merchants, they can shop around to see who gives them the best deal with processing fees & rewards. This is not a 1sided deal here. I’m waiting like the rest of you to see what kind of answers HSN krissy gets for us. 😊
Three quick thoughts:
Maybe legally, on paper, the HSN card is nothing more than any other store credit card. But it’s such an integral part of all HSN marketing, and visually an UNAVOIDABLE symbol of the company, that it’s functioning in a different way. That makes this mess all the more difficult for customers to handle and ultimately may affect liability. (I’m not a lawyer.)
Next I want to express how wonderful everyone on this thread is. We may not agree on every detail, but the effort and sincerity coming from this group should ASTOUND HSN management. We shouldn’t have to be doing this. This defines customer loyalty, not dollars spent per annum.
Finally (forgive me here) since this all started a phrase is stuck in my head: THE SILENCE OF THE SCAMS
Where is krissy the moderator? She said she would report back. It shouldn’t take that long to get answers.
HSN is responsible for predatory credit practices on their customers if they do not First inform us, and Second change their credit card company. I have lost my patience. I trusted HSN and they allowed us to be deceived by their chosen credit card company. Comenity Bank has so many bad business pratices, but this goes too far! So many customers are really going to get hurt.
Posted in Talk Among Yourselves
08.20.17 3:57 PM