29.99 % rate on credit cards.?

Question

Quick question for all of you. I know plenty of good people that get slamed with a 29.99% rate for even being 1 month late. It happend to me with chase but i pd it off in 3 months. Should the government step in on this.

Answer 1

no, it makes the world go round

Answer 2

No because it says they can in the contract. Also there are many credit card companies out there so compitition can easily fix this. All you have to do is tranfer your balance or call them and tell them you are going to transfer your ballance and you don't have to ever pay that. 29.99% is a way to take advantage of people who just don't care enough to read or take action.

Answer 3

Yes I believe they should but I work for the bank and sometimes I don't believe we are doing the right thing in a lot of cases. But your credit report does matter and if you have EVER been late on another loan of any kind, your rate will change. Oh but I know your credit score is awesome? right! Oh and you can't call a lot of times when you are in a reprice to get your rate lower, thats a meth believe me I get the calls. We are a bank and we are in it to make MONEY

Answer 4

this is called a DEFAULT RATE. if you are late with your payment, your APR will default from, say 14.99% to the default rate, which is usually much higher.

if you have good payment history, you can usually call the card company and they will reduce the default rate back to the normal apr rate. if you pay on time, your APR won't change, unless you are notified in writing prior to the rate change, in which case you can close your account.

and no, this shouldn't be stopped. so many people apply for credit and are irresponsible.

Answer 5

Citi Bank did that to me, i closed the account and payed off the balance.

Answer 6

lol, how bout wonderful "CAPITAL ONE" banging everyone with 31.50%