Credit Cards APR Increases...........

[wildcat2334]

just effing disgusting -

 

I just received a notice from Chase that my APR will go to 29.99% effective 12/1/09 before the new law goes into effect. Brilliant just brilliant, mind you I have great credit and have never missed a payment. So, in response to being a loyal, timely customer, the only recourse is to close the account and pay off the balance- which of course negatively affects your credit score

 

this is just nothing more than a shakedown , effing pissed off -

 

I read Citibank is doing the exact same thing

 

anyone else having their APR increased, if so, which banks?

[Savage Beatings]

Pretty much seeing it accross the board. I'd be interested in finding out which credit cards are NOT doing it.

[billay]

just effing disgusting -

 

I just received a notice from Chase that my APR will go to 29.99% effective 12/1/09 before the new law goes into effect. Brilliant just brilliant, mind you I have great credit and have never missed a payment. So, in response to being a loyal, timely customer, the only recourse is to close the account and pay off the balance- which of course negatively affects your credit score

 

this is just nothing more than a shakedown , effing pissed off -

 

I read Citibank is doing the exact same thing

 

anyone else having their APR increased, if so, which banks?

Got one today from Citi. They want to raise my rate on purchases to the U.S. Prime Rate plus 13.99% with a minimum rate of 19.99%. I shall be cancelling my card tomorrow.

[twiley]

Got one today from Citi. They want to raise my rate on purchases to the U.S. Prime Rate plus 13.99% with a minimum rate of 19.99%. I shall be cancelling my card tomorrow.

All 3 cards I have revolve around Citi and I got the same thing. Cancelled 2 but left one open since it's my business card. Bunch of crap.

[Perchoutofwater]

My dad tried to open a store credit card account at a store to save 20% on some promotion and got turned down. Now my dad is very well of and has zero debt. He's worried someone stole his identity because he can't imagine them turning him down.

[muck]

This is happening to consumers the world over ... right in front of the holidays ... which will have a negative effect on year-end spending (imo).

 

Also, lots of people are seeing their credit lines cut WAY back. Be leery about cancelling cards if you think you may actually need the liquidity at some point; getting credit lines restored to previous levels can be a PITA.

[Jimmy Neutron]

Also, lots of people are seeing their credit lines cut WAY back. Be leery about cancelling cards if you think you may actually need the liquidity at some point; getting credit lines restored to previous levels can be a PITA.

 

I've seen this on one open line of credit we have. I get quarterly letters saying they are lowering my credit limit.

[The Holy Roller]

I've have several accounts closed because I haven't used them in a couple of years. Chase, Citi, and a business account with American Express. F'm. Wait till they want my business again.

 

On the other hand I still get 0% interest checks from Royal Bank of Scotland MasterCard, AT&T, and Bank of America, begging me to transfer balances.

[Avernus]

I had a Washington Mutual card that switched over to Chase...then received a letter saying that my APR might change according to such and such...

 

it was 12.99....it went up to 13.99....I said alright, alright they didn't abuse power....

 

then I found my monthly bill to shoot up another $40.....and when I looked, my rate was 26.9

 

what a bunch of scumbags...

[Sox]

We just received two notices from GE Moneybank for our HH Gregg and Discount Tires card.29.99% on both,effective Jan 10th and 13th respectively.The balances are $400 and $800.

 

Kiss em' both goodbye GE.I'll close em,and pay them off before January and never do business with you again if I can avoid it.

[Ursa Majoris]

There's a number of conservatives posting in this thread and y'all seem to have a problem with these businesses. Don't you all support business? Pretty sure you've all said the Market is King in the past.

 

Disclaimer: I have noted that most of you are closing your accounts, which is exactly right.

[Ramhock]

Same here. 26 years, zero late payments. Citi, 2nd time this year to prime & 24%. Unfortunately, the only means to get rid of the 17K balance, created by economy induced neg D/I, is to sell our home. The only $ we have is the fairly significant equity in our home, which we can not get to any other way. I also have one of those attractive HELOCs, 7 years ago & that starts to ammoritize in 3 years, thought I would be in a better position, like the rest of us Americans. I think the housing market is certain for another downturn when the Fed is unable to keep the rates where they are.

 

Thought long & hard about the scenarios:

 

A) Struggle paycheck to paycheck until I can't afford the cc payment, sometime in the spring. Go into default & ruin my credit.

Sell & rent for a year or 2, with a lump sum of cash. Take my family on a decent vacation, replace the '93 Bonneville w/ a decent, used SUV. Breathe & sleep better.

 

I'm selling plan B to wifie, this weekend.

[whomper]

When does the new law go in to effect ? The one where they can't raise the rates over a certain percentage ?

[i_am_the_swammi]

Let's see....Amereicans as a whole have abused credit cards...bought well beyond their means....have declarde bankruptcy at an alarming rate and caused billlions of dollars of losses to these credit card companies.....and now they pissed because credit card companies are raising interest rates(which is clearly written as their right in the contract each of us signed when we agreed to carry these credit cards) to try to make some of that money back.

 

Sorry, but I don't see how this is any different than any other business who must adjust their rates to offset losses....airlines, autos, hotels, gasoline, insurance companies ....don't all their prices rise when their losses affect their margins? When money gets tight, the first types of loans that people default on are their unsecured debts (those with no collateral). Late or completely negligent credit card payments are usuallyt the first. There are even companies out there now ADVISING consumers to default on their credit card debt so they can act on their behalf and nogotiate a lower balance due.

 

While some people are in a position of high debt because of necessity, most are in it because they wanted to live beyond their means. They didn't bother reading the contract they signed, and just continued to add debt. They are not paying it back. There credit card companies are now doing the only thing they can to maintain their margins....raising rates.

 

if you don't like it, pay off your balances.....and if you can't.....well...who's fault is it really?

[WashingtonD]

I recently called one of my card companies and complained about my high APR

 

CITI reduced my APR by 8% after a brief conversation with the first customer service representative...she was very helpful and recognized that I had been a long time customer and was sympathetic to the high APR.

 

Pretty good customer service there, I said this to a few co-workers and they did the same, out of a total of 6 people calling Citi, 4 got their APRs reduced.

 

So give them a call and ask, doesn't hurt

 

WD

[cre8tiff]

We closed all of ours because of this chit. Makes me wonder if the card companies can see that if all they have left are deadbeats or slow payers, their future may be limited.

 

Unless, of course, we bail them out AGAIN.

[wiegie]

who's fault is it really?

Three points:

 

1) It is mostly the fault of the people who stopped repaying their debts and the banks who were stupid enough to extend debt to these people to begin with. I would guess that most people posting here were indeed able to service their debts at the interest rates they were previously paying. The banks are basically changing the normal rules of the game (where they don't jack up interest rates on normal people without a good personal reason) to a rule where they exploit the fine print of the contract.

 

2) We live in a society where people have generally trusted that their counter-parties won't exploit the terms in the fine print. The banks' actions here are going to increase the transactions costs involved in making trades in the future by driving home the point that in today's society, corporations will screw you if they have the chance to do so. This will have an adverse effect on all firms, not just the ones who actually exploit the fine print.

 

3) People are especially outraged that firms who were bailed out with their tax money are now turning around and screwing them.

[TimC]

Unless, of course, we bail them out AGAIN.

 

You betcha they will be bailed out again. The precedent has been set. It'll only be easier next time...and it was pretty damn easy the last time. Just create a false panic that the banks are failing when they weren't. Hell, what do we really need with a dozen monster banks in this country anyways?

 

Yeah, Citi jacked mine up to 23.99% but I don't carry a balance. I'm shocked they haven't lowered my credit limit yet. I guess that's coming next. The only thing I worry about is some major unexpected expense that my savings can't handle. Especially some medical BS that you never know if your crooked insurance company will deny so you have to go to your crooked credit card company. All companies are cheats nowadays, it seems.

[whomper]

just effing disgusting -

 

I just received a notice from Chase that my APR will go to 29.99% effective 12/1/09 before the new law goes into effect. Brilliant just brilliant, mind you I have great credit and have never missed a payment. So, in response to being a loyal, timely customer, the only recourse is to close the account and pay off the balance- which of course negatively affects your credit score

this is just nothing more than a shakedown , effing pissed off -

 

I read Citibank is doing the exact same thing

 

anyone else having their APR increased, if so, which banks?

 

 

Is this true ?

[Sox]

Three points:

 

1) It is mostly the fault of the people who stopped repaying their debts and the banks who were stupid enough to extend debt to these people to begin with. I would guess that most people posting here were indeed able to service their debts at the interest rates they were previously paying. The banks are basically changing the normal rules of the game (where they don't jack up interest rates on normal people without a good personal reason) to a rule where they exploit the fine print of the contract.

 

2) We live in a society where people have generally trusted that their counter-parties won't exploit the terms in the fine print. The banks' actions here are going to increase the transactions costs involved in making trades in the future by driving home the point that in today's society, corporations will screw you if they have the chance to do so. This will have an adverse effect on all firms, not just the ones who actually exploit the fine print.

 

3) People are especially outraged that firms who were bailed out with their tax money are now turning around and screwing them.

 

 

 

Good points all.ESPECIALLY #3.

 

Edit to add:

 

Rates go up for customers that have good credit

 

As a result of banks trying to dramatically hike interest rates before new regulations go into effect, some lawmakers are proposing that would accelerate the introduction of reforms to December 1st of this year.

Edited November 19, 2009 by Sox

[wildcat2334]

Is this true ?

 

 

the way I understand it, yes. It effects your score by raising your utilization percentage.

 

It would give you less total unsecured credit at your disposal, raising your % if you are carrying any balances.

 

Like Muck said too, it seems to be harder to get back to previous CL if you close out an existing cc and open a new one.

 

It is all BS - I have 2 Chase cards, both used about the same amount- one is being increased while the other one is unaffected and the APR is still low, the girl was stuttering when I asked her why this is.

Edited November 19, 2009 by wildcat2334

[matt770]

We've been focusing hard on paying off our cards. For a while we were taking trips and buying pretty much whatever we wanted and I justified it because we were able to make the payments. We even put a good chunk of our wedding on cards. After a while you see how much it can ruin your whole financial picture including your ability to save. It's a big reason why we are going to be stuck in this house for longer than we wanted. By cutting back on a lot of frivolous expenses and going out less, I've been able to pay it down pretty dramatically this year and expect to be out of credit card debt in two years.

 

I watch the rates closely and use 0% balance transfer offers frequently. I pay as much as I can toward any card that has an interest rate and pay the minimum toward the 0% cards. If they try to raise my rate, I call immediately and tell them I'm going to cancel and if they still raise the rate I transfer the balance. It has rarely been a problem in the past, but now I'll definitely be checking all of my cards to make sure they aren't trying to pull this crap with me.

[dmarc117]

banks are still in trouble. they need every penny they can get.

[billay]

Let us not forget that the credit card companies had a large role in writing the new bankruptcy bill.

[TimC]

Imagine what other interest rates would be if they weren't being artificially lowered?