British Columbia Avarice Association
August 15, 2006 11:12 AM Subscribe
My home insurance company (BCAA)
has recently started charging 3% interest for monthly premiums debited from my bank account.
posted by weapons-grade pandemonium to Work & Money (13 answers total)
They never used to do this. The fine print says the interest is charged on the entire premium, so it works out to 5.5% when calculated on the declining balance throughout the policy year. It doesn't amount to much, but I can't stand this greedy nonsense. The premium is paid each month before I "use" the insurance (unlike a phone bill), so I am never indebted to them. How can they get away with this? Is there any legal precedent for disputing it? (I know I can just pay the whole premium up front.)