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Message
Credit card intrest hike...
Posted on 1/19/09 at 4:07 pm
Posted on 1/19/09 at 4:07 pm
So I just checked my credit card statement online and noticed a drastic increase in the APR that they are charging me. I've never been late on payments so I thought there was an obvious problem on their end. I called customer service and the conversation went something like this:
Customer Service: Hello Mr. ____. How can I help you?
Me: Hello. I just reviewed my monthly statement online and noticed that there was an APR increase of 16.75%. Can you explain why there was such a large increase?
CS: (paraphrased) Yes sir. Due to the financial environment we have decided that to continue doing business we would need to increase the APR. However, if you don't want to continue under the conditions of your cardholder agreement I can return your APR to it's previous level and your account will be closed automatically when the card reaches it's expiration date.
Me: (thinking about how dumb this question is) That sounds like a good idea.
Question: Is this just a tactic for the bank to reduce the amount of creditors and possibly liquify some of it's assets? I doubt they'll keep many customers with that large of a rate increase. Just imagined if I had never decided to call.
Note that I am in no way a finacial wizard (more like a dumbass).
Customer Service: Hello Mr. ____. How can I help you?
Me: Hello. I just reviewed my monthly statement online and noticed that there was an APR increase of 16.75%. Can you explain why there was such a large increase?
CS: (paraphrased) Yes sir. Due to the financial environment we have decided that to continue doing business we would need to increase the APR. However, if you don't want to continue under the conditions of your cardholder agreement I can return your APR to it's previous level and your account will be closed automatically when the card reaches it's expiration date.
Me: (thinking about how dumb this question is) That sounds like a good idea.
Question: Is this just a tactic for the bank to reduce the amount of creditors and possibly liquify some of it's assets? I doubt they'll keep many customers with that large of a rate increase. Just imagined if I had never decided to call.
Note that I am in no way a finacial wizard (more like a dumbass).
5
Posted on 1/19/09 at 4:19 pm to TigersRuleTheEarth
What they've done might be illegal. They can't just unilaterally change the terms on you like that.
Posted on 1/19/09 at 5:49 pm to Cold Cous Cous
They can and they will........best advice don't carry a balance. I refuse to pay a cent of interest to those bastards....nothing but legalized usury.
Posted on 1/19/09 at 5:54 pm to TigersRuleTheEarth
this makes me feel better about paying Amex $100 per year for the privilege to use their cards.
Posted on 1/19/09 at 5:58 pm to TJG210
I may be wrong, but I'm almost certain they can't do it without providing you notice and an opportunity to cancel your card.
I'm not saying this isn't a common practice. But just because they do it doesn't mean it's legal. Credit card companies are more than willing to push the barriers of the Truth in Lending Act and other assorted laws.
I'm not saying this isn't a common practice. But just because they do it doesn't mean it's legal. Credit card companies are more than willing to push the barriers of the Truth in Lending Act and other assorted laws.
Posted on 1/19/09 at 6:05 pm to Cold Cous Cous
I'm not sure what my APR is because I always pay it off in full every month. I should probably check, though.
Posted on 1/19/09 at 9:07 pm to TigerRanter
congress is currently working on a plan to eliminate this practice
Posted on 1/19/09 at 9:10 pm to TigersRuleTheEarth
This is why in three weeks, every credit account I have, save for student loans, my house, and my two cars (they are both at 0%), will be paid down to a zero balance.
Posted on 1/19/09 at 9:22 pm to 756
quote:
congress is currently working on a plan to eliminate this practice
they already passed it, but it doesn't take effect until mid 2010
Posted on 1/19/09 at 9:34 pm to Cold Cous Cous
quote:
I may be wrong, but I'm almost certain they can't do it without providing you notice and an opportunity to cancel your card.
They very well may have. I'm not really bitching about it because they were very polite and suggested that I may cancel my account. God knows I wouldn't be the only person that lost the notice in the mail.
I was just wondering what would make a lender hike rates to such a level with an account in good standing and an excellent history. Maybe they see me as a credit risk, but I have good credit.
To all the guys and gals with $0 balances: I'm working to get where you are. Here's to living as debit free as humanly possible.
Posted on 1/19/09 at 10:14 pm to TigersRuleTheEarth
Hasn't happened to me yet but trust me, you are not the only one that C.C. companies are doing this to. It's the state of the economy we're in. Seems shitty that even though you have never been late with payments they can hike your interest rate up but they can and they will.
This post was edited on 1/19/09 at 10:18 pm
Posted on 1/21/09 at 8:58 am to TigersRuleTheEarth
I'm not an expert but I'm pretty sure they can change the rates on you at anytime no matter your payment history. It will be spelled out in the card holder agreement.
With that said, they will also be required to provide you notice of any rate changes. I'm pretty sure they would've sent you at least a letter with a 30 day notice of the rate change.
With that said, they will also be required to provide you notice of any rate changes. I'm pretty sure they would've sent you at least a letter with a 30 day notice of the rate change.
Posted on 1/21/09 at 10:10 am to TigersRuleTheEarth
quote:
I doubt they'll keep many customers with that large of a rate increase.
Well to be fair credit we are all bigger credit risks than we were 6 months ago. I do think you're right though and I've seen many articles suggesting a shift to debit card spending.
Posted on 1/21/09 at 11:08 am to WM88
quote:
I'm pretty sure they would've sent you at least a letter with a 30 day notice of the rate change.
More likely, they sent you a little 3x5 pamphlet along with your bill that includes (in 8 point type) about 5,000 words of irrelevant nonsense, and subparagraph VI(b)(iii) mentions that your rate is going up.
In cas you can't tell, I generally don't like credit card companies.
Posted on 1/21/09 at 12:09 pm to Cold Cous Cous
The mail just arrived with 2 notices, 1 from Chase with a notice of an increase from 7.99 to 13.99. " The principal factor we considered in amending your account is maintaining profitablity on your account." Never late. The other was from Citibank went from 11.99% to 25.99%. Late 1 day on last bill! stupid stupid.
Posted on 1/21/09 at 12:42 pm to Doc Holliday
quote:Points for honesty, I guess.
" The principal factor we considered in amending your account is maintaining profitablity on your account."
Posted on 1/21/09 at 12:58 pm to Cold Cous Cous
My Citi and Chase cards both had a rate increase. I really think that Joe American rarely checks his rate and just continues to pay minimum or above. This is what the companies are hoping for. I just took a chunk of student loan money (4.75%) and paid all of them off and cancelled. Only have 2 left that are open.
Posted on 1/21/09 at 1:12 pm to MSMHater
quote:Good call. The only concern is that you're trading dischargeable debt for non-dischargeable debt. Try not to declare bankruptcy, mkay?
This is what the companies are hoping for. I just took a chunk of student loan money (4.75%) and paid all of them off and cancelled.
Posted on 1/21/09 at 1:46 pm to Cold Cous Cous
quote:
Try not to declare bankruptcy, mkay?
Wasn't in the plans. If people suddenly stop needing cancer treatment and new livers I could really be in trouble though. Drink up fellas!
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