Hi, I was just wondering a credit card company raised my interest rate by 3% without notifying me or explaining why. Is this legal?
2006-08-18 04:12:17 · 11 answers · asked by Greeneyes87 1 in Business & Finance ➔ Personal Finance
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2006-08-19 08:45:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
No. They have the right to raise the rate, but not without notifying you. If you look at your previous statements, I'll bet that they did notify you. If you read the credit card agreement you'll see that the creditor has the right to raise or lower the rate at any time.
If the rate is too high, try http://www.capone.com I have a nice 6.99% card with them.
2006-08-18 04:32:27 · answer #2 · answered by Adios 5 · 1⤊ 0⤋
Dale is correct. No it is not legal. They do have the right to raise the rate, but not without notifying you at least in the United States. They need to give you time to close the account if you don't agree to the new terms.
2006-08-19 13:27:59 · answer #3 · answered by webworm90 4 · 0⤊ 0⤋
It is written into your cardholder agreement. They have the legal right to raise your rate. They do this for profit reasons, perceived risk increases or simply to match increases in the federal funds rate.
If you routinely pay more than the minimum payment, you may wish to call them and request a rate reduction. This does work in many cases. You will enhance your position to gain a rate reduction if you make much higher payments than the requested minimum. This article may help.
2006-08-18 04:34:41 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, the creditc card company can. It is written in the agreement when you first signed up. However there is a limit that they can raise. Is the 3% increase is for per annum or per month?
2006-08-18 04:20:43 · answer #5 · answered by robert l 1 · 0⤊ 0⤋
Yes they can. You should have read the fine print, it clearly states that they can raise the interest rate without notifying you.
How to Manage Your Credit Card
http://www.askaquery.com/Answers/qn1579.html
2006-08-18 07:01:37 · answer #6 · answered by pied piper 1 · 0⤊ 1⤋
Yes. Credit card companies aways reserve the right to change their policies.
2006-08-18 07:31:38 · answer #7 · answered by Red Hair Sweetie 2 · 0⤊ 1⤋
yes...they can change the interest rate anytime
Credit Card Debt Management
http://www.debt-explained.com/category/Credit-Card-Debt-Management.html
2006-08-18 21:53:12 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Yes, and they do so routinely.
What you can do is routinely call them and ask for a decrease. They will honor that if your credit situation has not changed for the worse!
Hope this helps!
2006-08-18 04:25:25 · answer #9 · answered by kcincon 3 · 0⤊ 1⤋
yes they can and do i dont know if its legal. check out on oprah .com the debt diet it gives great info on credit card companies and what you can do
2006-08-18 04:19:12 · answer #10 · answered by cozjeanda 5 · 0⤊ 1⤋