visa card was sold by MBNA to BofA this year. APR was 6% now 27%.No late/missed payment. Can they do that?

Question

The rep said it's because I only have been paying minimum payment due. Even if there is no delinquency, no default, they still raise APR. How can I fight back?

Answer 1

WOW! No late payments and they still raised your interest rate like that? Doesn't seem right, but I'm sure if you read the 'Terms and Conditions' there's something in there that allows them to raise your interest rate for any reason...

Your first option would be to call and ask them to lower your APR. Give them a good reason (ie: long-standing account, good payment history, increased income or credit score, etc.). Talk to a manager if needed...

If this doesn't work, you might want to compare other offers and see if you can find a better deal. You might be able to use this as leverage against your current credit card company to get them to lower your rate. If not, accept the new offer! Here's a great place to start comparing offers:

http://www.asapcreditcard.com

Hope this helps. GOOD LUCK!

Answer 2

Credit card companies can adjust your interest rate basically at will. If you read your terms there will be something that states that. In your case they probably feel that in general people who only pay the minimum are a higher risk.

You can try to threaten to cancel the card if they don't lower your interest rate. However, since they raised your rate they probably feel that you are a risk(wether or not you actually are) so they will probably say "Good Bye". For every one that they loose, they will get another one who gets one of their cards.

It's not a great option but your best way to fight back is to pay it off as quick as you can so you don't have to pay the higher interest rates.

Answer 3

You are not alone here, No they can not do that these large financial institutions do things like this becasue they think people wont question them.

Tell them the contract you signed stated the 6% APR providing it was not an introductory offer you have a legal right to have that contract enforced, Refuse to pay until you have your old APR reinstated.

You could alway treaten legal action these big companies will give in befor you do as it costs them thousands to defend a case they will only proceed if you own them even more.

Stop using the card phone and tell them why and follow it up with a letter

You can alway threaten to report them to the FSA under the miss sales of financial products act as the rep told you 6%
Good luck

Answer 4

Read your terms in your contract, but the credit card companies usually have the right to change interest rates as long as they notify you of the change.

6% is an extraordinarily low rate for a credit card - are you sure that wasn't just a short term promotional offer anyway?

Answer 5

Get another card that has the balance transfer option when you sign up. Then move that high interest rate amount over to the new card. AND for God sake pay more than the minimum each month, even if it's just 10.00.

Answer 6

Yes they can raise your rate. They did it to me too. I have great credit and pay off my credit card every month. When I called they had no real "reason". I told them to shove their card...but they don't care. Enough people have to stop using them for it to make a difference.

Answer 7

BOA is known for these lousy tactics.... And yes - They can do that to you but you can tell them you arent in agreement but it means you can not continue to use the card....

Yes - It's aggrevating but they are doing you a favor by making you leave them -- THEY SUCK!

Answer 8

Threaten to cancel. If they don't change it, do it. Most likely they'll be crawling at your door begging for you back.