They Doubled my Finance charge because some outside company decided I had bad credit rating. I was never late with this card or any of my other credit cards. My finance charge went from $243.00 to $459.00 in one month! Can they do this? What should I do? I can't afford to pay this bill. I am partners in a small deli that my partner runs and I have my own job. I do not take a income from the store.Can they touch the store? please help! Can I sell my shares to my partner? will that be fraud? Or just not pay it .I'm in a big mess!
2006-06-22 15:30:00 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
Welcome to the latest credit card "gotcha".....it's call UNIVERSAL DEFAULT....screw up on one credit card, one loan, and have a low credit rating....at any time....and they find out....they can increase your interest rate.....get your statement from a couple of months ago and compare the interest rate to the current.....
First, go to annualreport.com....pull your free credit report and pay the $8 or 9 bucks to get your fico score....if its above 620, you can call and argue.....if your history w/ them is good, you might have a shot.....BE POLITE......Tell them you are a great customer because you carry your balance and are never late....whatever...BE POLITE, but insistent.
2006-06-22 16:10:34 · answer #1 · answered by Paula M 5 · 1⤊ 0⤋
Yes they can do that.
However, you have some tools you can use to try to prevent other creditors from taking similar action. You have the right to put a note in your credit file on any action.
You clearly had an incident in your past that is counting against you somehow.
Federal law allows you to find out why speficially they raised your finance charge. They have to tell you what informaiton it was and where they got it.
You then have the right to dispute that information if it is wrong or has extenuating circumstance, which you can do simply by contacting the credit reporting agency that has the derogatory credit information on you.
By all means, you have to pay this bill and if you don't, it will only make your credit matters worse. You need to contact the creditor immediately and make payment arrangements even if it just to pay a portion a month.
And, by all means you must make all your regular payments on all your OTHER credit lines or they will do the same thing.
If the store is an asset and you declare bankruptcy, by all means they can take the assets you have in the deli. You'll owe it to them. You can sell your shares but you must do so before filing. It will not be fraud so long as you do it right away and use the proceeds to pay down some of your debt, then declare if you have to.
2006-06-23 01:54:00 · answer #2 · answered by markmywordz 5 · 0⤊ 0⤋
Best solution is to shop around for a card with lower rates. If you find one, contact the original credit card company and tell them to match the rate or lose your business.
2006-06-23 15:05:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
this is a great question. I wish I had an answer for you.
2006-06-22 22:31:37 · answer #4 · answered by intresting fellow 2 · 0⤊ 0⤋