I have been dealing with Chase for years. First it was Onbank. The creditor closed my account years ago. Unfortuanetly I ran into hard times, I was left a single Mom with small children to raise. I have been late once this past year. The interest rate is now 29.9 percent. The total of all my original purchases were approx $5,000.00 I have paid the sharks approx $11,000. Somehow I still owe them $3,334.. How can they charge me late charges at this point anyway? I haven't made a purchase in over 6 years isn't that an oxymoron any paymnet at this point is late. I live in NY and the Chase is in Delaware (Sharkcity). It would seem to me that I have more than paid them off. I don't see how they cann keep changing the interest rate on a closed account. Any information is greatluy apprecaited. Thanks!
2006-10-13 09:32:47 · 12 answers · asked by mm8048 1 in Business & Finance ➔ Credit
Sure. They can set their rates as they like. The account is not truly closed as you still have a balance. It is just closed in terms of not being able to make new changes / purchases.
You are to make monthly payments against your principle and interest. You must have been repeatedly late on those payments to have the interest rate get so ridiculously high.
You can open a new account elsewhere and transfer the balance.
2006-10-13 09:33:44 · answer #1 · answered by Plasmapuppy 7 · 0⤊ 1⤋
Both you and the credit card company are bound by the terms at the time the card was "closed". "Frozen" is a more accurate term. Those terms probably allow them to increase your interest rate if you make late payments. They definitely allows them to charge a late fee any month they do not receive a payment by the due date. If you have been making minimum payments for 6 years and have been late regularly, $11,000 in payments and a $3,334 balance from $5000 original purchases actually sounds low.
2006-10-13 15:31:14 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
as long as you have a balance they can keep upping the interest rate - even on closed accounts. I would recommend calling them and requesting a "getting back on your feet" consideration. Many will go interest free for 6 months giving you a chance to get the amount paid off. There are also credit counselors who are able to negotiate smaller payments with less interest - however some of those are pretty shady - but not all of them. Good luck with the sharks.....
2006-10-13 09:37:31 · answer #3 · answered by akelaamy 5 · 0⤊ 0⤋
You need to check with the disclaimer info when you originally signed for the card. Some card companies say that upon cancellation of account the intrest rate will go up X amt due to the cancellation. Like when you cancel your cellphone account. They want to charge you x amt cause you are terminating the contract well its the same concept only with interest rates.
But I could be wrong. I would contact the company and get an explanation.
2006-10-13 09:37:28 · answer #4 · answered by Kit 4 · 0⤊ 0⤋
Unfortunately,they can. You state that you still owe a balance on that account and credit card rates are adjustable.
Can you qualify for a lower interest credit card with enough headspace to pay off the $3300??
How about a conventional bank loan. That would have a lower interest rate that any 30%
2006-10-13 09:35:17 · answer #5 · answered by credo quia est absurdum 7 · 1⤊ 0⤋
Yes, they can keep charging you interest and they can raise the rate whenever they want. It's not fair, but it's life. You might be able to get some help at this credit card help website.
2006-10-13 09:36:21 · answer #6 · answered by Writer of Truth 4 · 1⤊ 0⤋
Of course they can. You still "have" an account if you still have a balance. Call them and negotiate a rate that can stay until the balance is paid- assuming you make your payments on time and regularly.
2016-05-21 23:33:27 · answer #7 · answered by Jo-ann 4 · 0⤊ 0⤋
Yes, they can raise them even if you missed one payment and they can also raise the rate based on your other cards. I was late on a few before and the other credit cards I had were raised because they saw that I was bad with other credit cards. I was considered a "risk."
2006-10-13 09:35:45 · answer #8 · answered by A 2 · 1⤊ 0⤋
I would contact them...tell them your story and maybe they will reduce the rate. It sucks, been there myself. They got ya and it's truly robbery. Give it a try though, maybe you'll catch them on a good day! Good Luck!
2006-10-13 09:35:42 · answer #9 · answered by Barbara H 3 · 1⤊ 0⤋
Once they close your account they have set set your debt at a set level
They can't change the interest rate after that
2006-10-13 09:35:50 · answer #10 · answered by Anonymous · 0⤊ 2⤋