Just read about this sneaky thing the cc companies use. Anyone know how to check if you have it on your cards? I have one card charging me 35% and I am a good customer, but was late 2 times during an illness and family emergency.
2007-03-14 06:34:35 · 4 answers · asked by CJ 1 in Business & Finance ➔ Credit
This is a result of new credit card laws that were recently passed in early 2006.
The default clause gives CC companies the ability to default your rate to an amount they choose based on you payment history. Even worse, they:
A: Don't have to notify you beforehand (unless your signing up for a new card...then it's in the disclaimer) otherwise it's within 30 days of change (by mail).
and B: "Default" your rate based on not just you payment history with them but your payment history with ANY creditor.
Oh - uh and by the way....with the new laws, they can raise it for no reason at all.
2007-03-14 06:42:05 · answer #1 · answered by ? 5 · 0⤊ 0⤋
Read this great article: http://finance.yahoo.com/expert/article/millionaire/26303
The info you want is not on a card issuer's website. It is in the fine print of the offer they sent you. since you no longer have this, (who saves it?) call the CC company and ask them to send you a copy of all the terms and conditions for your card. Switch to a card with NO universal default clause. Avoid the huge credit card companies that offer cards to everyone. Good luck
2007-03-14 06:48:31 · answer #2 · answered by dicey047 2 · 0⤊ 0⤋
THIRTY FIVE PERCENT?????
Where do you live? In my state, that's illegal.
Forget about whether you have a universal default clause - SWITCH CARD COMPANIES. You are getting the shaft.
2007-03-14 06:39:53 · answer #3 · answered by Ralfcoder 7 · 0⤊ 0⤋
they probably have a website. most credit card companies do. good luck, i was thinking the same thing.
2007-03-14 06:37:49 · answer #4 · answered by koifishlady 4 · 0⤊ 0⤋