A credit card I carry just raised my APR from 12.74 to 26.99!!! NOT because I was over the limit or late on payments.....but because (1) I was using their card and (2) because I have credit with OTHER companies (NO LATE PAYS/NO OVER LIMIT on the other companies either). It does state that they have the right to change their terms...most cards do have that clause, but it seems ethically and morally WRONG for them to LEGALLY penalize their customers because they have credit elsewhere (which is none of their business) and/or because their customers take advantage of their (initial) low interest balance transfer specials (this is what I did). ANY LEGAL EAGLES OUT THERE WITH ADVICE??? I AM STILL FUMING!!!
2007-03-15 06:27:16 · 7 answers · asked by Mona C 1 in Politics & Government ➔ Law & Ethics
I think it stinks, but it's still legal. I agree with the other folks who answered. However, there has been a bill introduced in Congress about last week that would outlaw these predatory usury practices. You might urge your Congressional delegation to support it. I don't know much about the bill, but it is opposed by some of the Republicans. It was introduced by a Democrat, but I don't know why it's opposed by the GOP. The article I read on Hang Right Politics just said people should not buy things they can't afford on credit, but that's not your situation. The only other thing I can think of is to check if your state has usury laws. Unfortunately, my state does not. I'd at least file a written objection with the state Attorney General. That might get them to back off on you personally, but probably wouldn't help anyone else. I'm a lawyer, but I can't give you any helpful advice. Like I said, they could do it in my state.
2007-03-15 06:41:50 · answer #1 · answered by David M 7 · 1⤊ 0⤋
You may reject the new terms in accordance with the agreement.
However, this essentially cancels the card.
Notify the company in writing that you will not accept the higher rate. You must continue to make at least the minimum payments until it is paid off, then the account is closed.
An alternative would be to find a card with a lower rate and transfer the balance.
What you should be doing is cutting up ALL your credit cards and living within your means. Can't afford something? DON'T BUY IT.
2007-03-15 06:37:55 · answer #2 · answered by gw_bushisamoron 4 · 1⤊ 0⤋
This is an unacceptable commercial practice that is unfortunately still legal. There is a bill pending before Congress to make this practice illegal and a stern letter to them copied to your state's consumer affairs division, the better business bureau, the newspaper and your state and federal representative might get them to change the policy, at least as applied to you. You can also volunteer to testify before Congress if the hearings aren't over, the man who did got his debt forgiven and the company agreed to terminate the policy.
2007-03-15 06:45:52 · answer #3 · answered by Tara P 5 · 0⤊ 0⤋
Lisa is correct about them being able to change the terms of the contract without notice. It happened to my husband's credit card too. But you CAN'T cancel it until the balance is paid in full.
2007-03-15 06:34:19 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, it is probably legal. Check with your State Attorney Generals office for your state's law. I agree that it is ethically and morally wrong, but they're not in business to win friends. Best to pay cash, then they can't do this to you.
2007-03-15 06:33:21 · answer #5 · answered by Ben H 5 · 1⤊ 0⤋
Your recourse is to cancel the card and not give that company your business any more. As you said, it is in your contract that they may change the terms at any time.
2007-03-15 06:31:35 · answer #6 · answered by Lisa A 7 · 1⤊ 0⤋
switch companies and get a lower rate
2007-03-15 06:33:15 · answer #7 · answered by Proofoflife 3 · 1⤊ 0⤋