PREDATORY bank loan , Credit one bank . . Is there any thing to do about unfair fees?

Question

any help , State of MA

The fees there charging me have put me over the credit limit. Now im so over the limit i cant pay the full amount. And every month they keep adding up. I allways make a monthy payment . But im only getting more in dept with them. Im a single parent of two ,so funds are tuff. i want to have credit ,But this SUCKS

Answer 1

First just because a fee put you over the credit limit does not by default mean it is illegal, so there is probably not much you can do about it. It may seem unfair and I don't know your exact situation. But in all probability you were close to your limit when the fee was assessed for one of numerous reasons. Unfortunately these fees are spelled out in the terms and conditions when you got the card.

The best thing you can do is work with the creditor. Yes this does seem tough, but let them know your current situation. See if they can do anything to get you back under your limit. This may be something like having you pay the amount over the limit amount in 2-3 months. If the "payment" you are making is not what they are requiring it is doing you no help at all, such as if your minimum payment is $150 and you are only paying $75. After not paying the required amount for a couple of months they will turn your account over to collections. Once you have to deal with a collection agency it will become a lot more troublesome.

Also, you say "I want to have credit". However, credit may not be an option for you until you can get this under control. I am sure none of these are things you want to hear, but it is the reality of your situation.

Answer 2

First of all, it's a not a loan, it's a unsecured credit card. They can charge much higher rates than allowed on other types of loans such as home loans.

Funny you mention credit one bank. My score was low earlier this year due to lack of credit usage. I applied for a credit one bank card and I got a $350 limit with $100 charged on it for "start up fees". I immediately called an cancelled the card before activating it.

All their fees were disclosed up front. Problem is the limit is so small and the late charges add up. Just close the account and pay it off. Try orchard bank instead.

Answer 3

Stop charging on the credit cards. Take a close look at how you spend your money. You're going to have to make a strict budget and cut out all the extras -- cell phone, eating out, new clothes, premium cable and internet.

You need to come up with enough money to get that credit card below the limit. Not only will you continue to rack up over limit fees, but they are going to increase your interest rate to the max. And you are going to trash your credit.

It's not the bank's fault. You're the one who ran up that charge card.

Answer 4

Hah, YOU DO NOT NEED CREDIT

Pay it OFF.

http://www.daveramsey.com/

https://www.mytotalmoneymakeover.com/index.cfm?

http://www.crown.org/

It is called Financial Insolvency.

Of course pay your living costs first - consider moving and spending less in these costs.

All will tell you pay small credit off 1st, then next up - called the SNOWBALL EFFECT. Works

Buy all your food for 2 years or more, to save. You can make extra sandwiches and sell at work sometimes, other extra incomes.

Yes, YOU WILL MAKE IT. No movies, restaurants out! MAKE THAT BUDGET!

Answer 5

It's not predatory lending (legally) if they are calling it a fee instead of an interest rate.

Didn't they provide you with the terms of the loan/credit card when you applied? It was probably that little pamphlet that you got with your statement and threw away...it's important to read those things.

Answer 6

You agreed to the terms when you opened the account...it's is foolish to call it "predatory" as you were told what the fees and costs would be.

Answer 7

What type of fees that you think it's unfair? Need more details

Answer 8

Have you called them to complain?

Answer 9

contact your state department of commerce.

Answer 10

need more info