Bankruptcy Law??? My credit card APR just went up 4.75%!!!!

[s8hanse1]

I just got my most recent National City credit card statement in the mail today. My APR just got jacked up 4.75%, from 17.99% (yuk) to 22.74% (@$?*!). I can't believe it! I called them up and they said that they "periodically" check to see if credit scores have changed, and adjust rates accordingly.

Seems kind of strange that this coincided with the Bankruptcy Law change......hmmmmmmm. THANKS PRESIDENT BUSH!!!!

[Deja Q]

1. Credit counseling. They told me my rates would remain the same.

It's like they want people to do this.

And then come credit checks for job interview candidates. :D

[tatertop]

2. I have never heard of that

"periodically" check to see if credit scores have changed, and adjust rates accordingly."
I have never heard of this before.
I know people who file bankruptcy and keep
a credit card at the same rate.

[Horse with no Name]

12. It's true

My mom has had a Penney's card for 20 years.
She returned back to school to get an advanced degree.
When they did a periodic check, they noted that her income had changed significantly (because she was a student) and lowered her credit limit.
She never had a late payment.

[tatertop]

20. It can't always be true

Typically, people who own a small business
show little or no income. I don't know a single one
who has ever had their credit card limit lowered.

[Horse with no Name]

21. I didn't say always

But I know that it happened to my Mom.
She called them and they told her that they periodically randomly ran credit reports on their existing customers and if they saw any changes that could affect repayment of the debt, they adjusted the accounts accordingly to protect their interests.

[tatertop]

43. Credit card companies are evil

for sure

[progressivebydesign]

31. It's called UNIVERSAL RATE.

Google it for the exact term and info, but it's standard practice right now. They can raise your rates based on anything.. a credit score change (and guess what? Credit scores are influenced by things that you have nothing to do with.. like people in your neighborhood who have filed for bankruptcy). It's insidious and it's real. Look it up.

[VolcanoJen]

37. Wait a minute... is Universal Rate a new thing?

This just happened to me, too... got a letter from Discover Card saying that "based upon my credit report, your rate has been raised 3.7%."

I couldn't believe it... and had never received such a letter before.

I'm livid at these credit companies... I have excellent credit, haven't even a single late pay on any of my accounts, mortgage, car, or unsecured.

I just don't get it! :-(

[tatertop]

44. That happens often from what I have seen

what a dishonest way of doing business

[WI_DEM]

3. you can also thank some of the democrats who voted for that

opressive piece of legislation.

[SammyWinstonJack]

18. Sen. Joe Biden wants your vote for President in '08!

Fat chance, he'll get mine! :grr:

[depakid]

36. My Congressman ain't getting mine either in 2006

He's sold out one too many times. Did the dems (and his constituents) wrong on the Medicare scam, too.

[Joe Chi Minh]

4. That's absolutely criminal!

[Dave Reynolds]

5. I heard about a similar instance

with Capital One last year. Apparently this is becoming a trend among lenders.

[Heddi]

6. Capital One is ratshit

I had their shitty CC a few years ago when I was young and building my credit.

I was finding that I'd get my statment on, say, the 15th, and the payment would be due on the 20th. Hardly a decent turn-around time, esp. since alot of times I'd get my statment THREE DAYS before payment was due.

I called Cap One and told them that I was having a hard time making pymnts on time because the statment came so close to the due date. The lady apologized and said they'd recalculate my statement mail date--well, that was fine and I started getting statements 3 wks prior to the due date.

All was well, again, until I noticed that every month I had a $10 late payment fee added to my account. I couldn't understand this because I mailed my payment the day I got my statement and KNEW my payment was getting there on time.

Well, I checked the cancelled checks, and say my payment was due on the 20th--they'd not cash the check until the 21st. Always 1 day late.

EVEN when I did online payments, they would not process the payment until the day after my due date.

I went around and around with that fucking company, and they're all bullshitting that "Well, we didn't get the payment til the 20th, so it was technically late"---well, two months in a row I paid $14 to get next-day air delivery from the USPS---so I'd send the money out on the 10th and got CONFIRMATION that it was there on the 11th, and they STILL didn't apply payment until the day after it was due.

Of course, this was WRECKING My credit, and after I had the 2 mos payments sent by overnight, I called the company and told them that I know for a fact they got my checks on the 11th of the month and yet they waited until AFTER the due date to cash the checks. So they got rid of those 2 months late payments but not the other months.

I finally paid off the card and cancelled it, and called the state Attorney General and they were very uninterested in this and suggested I pay my bill on time---I assured them that I was payign my bill on time, and they just were not interested.

The same thing happened to my mom, who had Cap One as well as a few people I went to school with who had Cap One as well. I do not understand how that business is still IN business. They are the shadiest!

[PA Democrat]

15. I have received FOUR, count 'em FOUR

pre-approved credit card applications within one week from Capital One. What is their deal? I don't want their stinking credit card. Why do they waste the paper and postage?

Anyone else been bombarded by solicitations from Capital One?

[jazzjunkysue]

19. From all of them. Daily. Some, send 2 in the same day.

Yet, I refuse to let a balance cross into the next month.

Ef 'em.

[Horse with no Name]

22. My 17 year old daughter has been getting 3-4 a month

I figure it is because she is applying to college.

[progressivebydesign]

32. My 13 year old got two recently. Go figure. n/t

[Dorian Gray]

24. Yeah

I get one EVERY day! (Sometimes two!) In my maiden name and my married name. It's insane! Unless you are desperate for a credit card, do NOT go for Cap One! They are terrible!

I have an American Express and a debit Visa card that also works as a credit card (from Merrill Lynch). They're just fine for me.

[anitar1]

35. I have, and was bombarded every week for a long time.

Finally wrote DECEASED across the front and returned them. Took a couple of weeks , but they stopped sending them.

[ernstbass]

48. Yes, and here is what I do:

Fill the pre paid return envelope full of paper until you can barely seal the envelope. Then they have to pay the extra postage. I hate Capital One!!!

[ayeshahaqqiqa]

8. They know that if someone goes bankrupt,

the credit cards will be paid for, so they've decided to get a larger and larger piece of the pie.

I don't use credit cards any more.

[Dave Reynolds]

13. I have a pre-paid,

just for things that absolutely require a CC. That way I can control how much is taken in an identity theft.

[regnaD kciN]

7. Rates going up, and...

...also minimum monthly payments. Used to be 2% of balance, now everyone is raising them to somewhere between 3% and 4%.

This would be not such a bad thing, if it meant that people would pay off their debts more quickly. However, much of that increase is merely going to pay the new, higher interest rates. And, of course, if someone is stretched so tight that they're barely getting by while managing to pay off the monthly minimum, the new rate is going to be a killer.

You know, it's funny...when the bankruptcy bill passed, lenders claimed that they would be able to lower interest rates, since they had more protection against bad debts lost to bankruptcy. So, the bill passes and rates go up, since lenders know that debtors won't be able to shield themselves via bankruptcy. Why am I not surprised?

:eyes:

[Greyhound]

16. Ding, ding, ding, someone has been paying attention. These 2 legislative

bombshells will make CC corps almost as profitable as the oil corps.

[lovuian]

38. If credit cards keep doing this a rebellion will really start!!!

and thats gonna happen!!! Usury is definitely being done here!!!

[Vinnie From Indy]

9. It's not a trend, it is a strategy

And, for that matter, a well thought out strategy. many of the large credit card companies are raising their rates ON EVERYONE. Nat City just did that to me. They tried to raise my rate from 13.99% to 18.99% with only a small note on my bill. I called and they backed down and moved my rate back. I still have to pay the 19% for one billing cycle.

These companies are going to go hog wild. They know they have Uncle Sam as their collection agent now. They will give every man woman and child in America a card regardless of risk. These companies are making an effort to be America's NEW SLAVEHOLDERS. They will own anyone that defaults.

[HockeyMom]

10. Mine went up to 30%

I am paying off the balance ($2,000) and cutting the card up. I will call them and tell them to STICK IT.

[wryter2000]

11. Not only that

They do regular double-cycling now. They compute your bill every two weeks but only send a bill every four weeks. If there's a balance at the end of the second week, they charge you interest on that even if you don't carry a balance month-to-month.

I pay off the bills every month because I WILL NOT give these blood suckers my money. I routinely find small interest charges, anyway. Double-billing or double-cycling or whatever it's called.

If you carry a balance you wouldn't be able to tell how much was this bogus billing strategy and what was "regular" interest charges.

Someone, somewhere ought to start an honest credit card company. They wouldn't make all the money in the world, just a whole lot of money.

Damned, fucking robber barons.

BTW, if you live near an Albertson's, look for the throw blankets they currently have on sale 3/$10. I'm using those and not turning on my furnace this year. (I live in Oaktown.) Damned, fucking robber barons.

:rant:

[latebloomer]

41. So THAT'S what they're doing!!

Double-cycling, huh?

Several months ago I ran a balance on my AmEx card, but I paid the whole thing off the following month. The following bill had a finance charge. When I called to complain I got a bunch of unintelligible gobbledygook-- but I raised enough hell so that they deleted the charge. I vowed to never again-- please Goddess- run a balance, at least on that card.

[wryter2000]

42. They all do it

I've been tempted to call and raise hell, but the charges have been so small it isn't worth my time.

[nini]

14. If you can't pay it off.. shop around for another with a lower rate

then close that acct. and move the balance over and tell them why.

good luck on this.

[zalinda]

17. Take a look at this one

http://www.amexonecard.com/main.html If you have to use a card, this one will set up a savings account for you and put 1% of your purchases in it. I don't know about the interest rate or transfering your balance, that's something you'll have to check out. I'm going to be using it for my business purchases.

zalinda

[peacebaby3]

23. MBNA did this on my 2 cards with them as well. Read the material your CC

company sent with the notice of increase. There should be an "opt-out" note. You will have to write a letter (with whatever specifics they ask for) and not use your card anymore. You will probably have a date that they have to receive the letter by as well so check and do it now. I did this on both of my cards through MBNA and then called to check and make sure they received my letters.

I have had both of my cards with them for over 10 years and they gave me the same BS about periodic review, but the funny thing is my credit is better now than it has been for the last 10 years (it's above avg.) so I wonder why the increase is happening along with the bankruptcy bill?!?!?! Hmmmm...could it be that they know they have you now so they want to screw you even more?!?!?

I know MBNA is the devil, but I've had these cards forever and had decent APRs. I never could get to the point of just paying them off or if I did there would be an emergency and I would use them again. Well, they will be payed off now because I have cut them up.

Good luck to you and read all the fine print in your notice of APR increase. I hope this will be in your notice.

[progressivebydesign]

29. Be REALLY careful disputing it! Discover demands full payoff if you do!

The fine print of the Discover Card (which we paid off and closed because of that), stated that you CAN dispute the rate change. However, it also said that when you do the account will be closed and your balance will be due immediately. No lie, You question it and they demand payoff instantly.

Be sure to thank your elected officials for taking cash from all the credit card companies and banks, and screwing the consumers that vote for them, in the process.

[peacebaby3]

45. I read very carefully. I don't have to pay it off all at once. I just

can't use the cards or I will be forced to accept the new APR. The cards are actually still considered open, I just cut them up because I don't want to use them and accept the new APR. If I wanted to close them, I would have to pay off the balances. When I pay them off, I will close the cards so they are no longer showing as open accounts.

Thanks for letting me know about Discover. Thank goodness, I don't have any CC(s) with them. :)

[tx_dem41]

25. If no one has noticed...

the prime interest and lending rates have been going up. The banks borrow at that rate.

[progressivebydesign]

30. No. That's not it. It's something called "UNIVERSAL RATE"

They review your accounts and credit scores and can arbitrarily jack your rates up to as high as 30% on a card that has had zero lates or overlimits, simply because you may have had a late car payment or change in credit score due to simply shoppping for a new car loan.

[tx_dem41]

33. We're talking about two different things. n/t

[rumpel]

26. The only card to keep is the check card with a Visa logo. Unless Congress

changes the law and makes the financial institutions lend money to people and businesses, that actually need it, I will not contribute to the loan sharking industry anymore.
The current system of protecting the institutions, and thereby penalizing the folks who have a hard time (most people need borrow because there is a need) with even higher interest is ridiculous. Either everyone pays the same rate or they should not lend in the first place. The whole credit scoring scheme is inhumane.
They throw money after large corporations that fail - and file bankruptcy. Look at Citibank and others which participated in the Enron scheme - they paid a small fine.
You or me would be serving time.
In the meantime, if you must have a credit card, Consumer Reports suggests try credit unions.

[karlrschneider]

27. If your credit is good, SHOP AROUND. Check for others and tell those

guys you're going to cancel & transfer your balance. You can do a LOT better! 22% is bullshit...you have to be FIRM...let them know you aren't going to put up with that, and if comes down to it, get a DIFFERENT card. We go through this several times a year, we make THEM bid on our business! You will be amazed what you can do if you challenge these a-holes. Feel free to contact me if you want,
[e-mail]

[progressivebydesign]

28. Universal Credit Rates. Scourge of the consumer's existence.

That is the most EVIL initiative I've ever seen those greedy bastards come up with. I read today that the Industry said they did that to 'discourage delinquencies". yeah, right. Raise your rates for no reason, double your minimum payments, shorten your billing cycles.. THAT really keeps us in line. NOT. IT only contributes to financial troubles. We paid off and closed our Discover card when they pulled that shit on us.. AND we told them WHY! They begged and pleaded for us to reopen the account (seriously they called like four times), they offered 75 bux credit on the account AND a really low rate! Bastards. We also paid off and closed our Dell Account because I got tired of talking to fucking India every time I had a question. AND I told them WHY I closed it. I have closed a variety of accounts and plan to avoid doing business with anyone that jacks up the interest rates that way or ships good jobs to India. Consumers can fight back if our Congress is too greedy and lazy to fight for us, the way they're supposed to! We elected them, NOT the corporations. I mean.. corporations may be considered a person by law, BUT we can vote, and they cannot.

[Hardrada]

34. We paid off most of ours

because of these shennanigans. Have a couple left but one I keep since it is for business expenses and is a convenience. Wife has one also but we may whittle both down to nothing shortly and use them as little as possible. Hard to close accounts permanently especially with MBNA since they keep sending statements, access checks etc but we have pretty much told them to go hike. Yes, I am getting tired of this India crap too. We were getting calls from some debt consolidation outfit (obvious Bangalore callers) AFTER we eliminated most of our debt and I told the caller I wanted to speak with his supervisor to stop the calls. I got an abject scared apology and no more problem.

[AbbyR]

50. I'm about to take a part-time job

so I can get my accounts paid off. I will wait tables or work at McDonald's or whatever it takes, and just put all the extra into the charge cards. This is insane.

And I am going to get my daughter's computer paid off before February so I will pay no interest, and I agree with you. It sounds so politically incorrect, but I would LOVE to say, JUST ONCE, "Could I please speak to someone whose first language is English?" It drives me nuts to try and deal with the heavy accents - I have a hearing loss and have enough trouble with Americans.

End of rant. And by the way, I have a master's degree and work as a writer and editor of a newspaper, so my hours will be limited. But it will be worth it. Sheessshhhh!!!

[pinniped]

39. I noticed Crapital One went up as well.

I never use them anymore, just paying off the balance. They suck and they're the barbarians they show on their commercials.

[susu369]

40. Legalized Loan Sharking

That said, I do believe the credit card companies will face a backlash soon. They will NOT have the last laugh for the simple reason: if you do not have the money to pay the bill, you cannot pay the bill. Then what?

[sam sarrha]

46. how about 29.9% and never missed a payment

[sam sarrha]

47. go and Goggle... "credit card cartel', it is a conspiraacy..busted!!

[rman]

49. Lots of people are going to be screwed by this

More then 100 million Americans have a credit card debt and use credit cards "to make ends meet". The average US family has 8 credit cards and $8000 debt.
Monthly payments used to be 5% of the debt balance. It was lowered to 2% to make it more attractive for consumers to use a credit card.

PBS Frontline: Secret history of the credit card
http://www.pbs.org/wgbh/pages/frontline/shows/credit/

======

"The House of Representatives approves an overhaul of the nation's bankruptcy laws Wednesday, in a vote of 302 to 126. The bill, which passed in the Senate last month, will make it more difficult to get rid of debts by filing for bankruptcy, forcing tens of thousand of people to work out repayment plans instead.
President Bush is expected to sign the bill, which opponents say will hurt the economically vulnerable."

NPR
Congress Overhauls Bankruptcy Laws
by Brian Naylor
April 14, 2005
http://www.npr.org/templates/story/story.php?storyId=4600645

======

"Within the next month, Bank of America, MBNA and Citigroup will raise minimum monthly payments on their cards from 2 percent of the balance to up to 4 percent, not including interest. Other card issuers are expected to make similar changes by the end of the year."

"On the good side of that, they will get out of debt faster, but on the down side, it's gonna be a squeeze," Greg Burgess, of Compass of Carolina, told WYFF News 4's Tim Waller.

Yahoo News
Minimum Credit Card Payments to double in next few months
Mon Jul 18, 5:47 PM ET
http://news.yahoo.com/news?tmpl=story&cid=401&e=2&u=/wyff/20050718/lo_wyff/2831815

ABC News
Credit Card Minimum Payments Set to Rise
July 20, 2005
http://abcnews.go.com/GMA/MellodyHobson/story?id=954593&page=1