What is the point of paying ...
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What is the point of paying ...
| Mon, 01-31-2005 - 7:39pm |
a credit card whose interest rate is 29.9%???????????????
UGGGGGH I am so angry I could scream!!!
Chase/Bank One just decided to raise three of my credit cards (i.e. 35,000 worth) to interest rates of 29.9%!!!!!!!!! I have never ever made one late payment to them or anyone else. The explanation: My debt level is too high ..no kidding jerk, how in the hel* is raising the interest rate to 30% going to help that out??????
I am so disgusted. The minimum payments do not even cover the finance charge. I really cannot see any point in continuing to pay them.
Anyone? Can anyone see the logic in why a bank would do this? To me it is just forcing a person to go to CCC or file bankruptcy...

Wow! No, that doesn't make much sense to me either. You would think they would want you to continue making payments at your old interest rate (which they would pocket), rather than raising your rates so high that either 1. You would switch to another card company offering a lower rate OR 2. You would file bankruptcy and they wouldn't get any of their money back.
Is there any chance of transferring your debt onto another (or several) other cards at a lower interest? There still may be some zero % offers floating around, but at this point, anything is better than 29.9%.
Can you complain about this in writing? Send it certified mail so you know they received it?
I wish you luck in fighting this if you choose to. I just can't understand why they would do this for simply having a high debt load, even when you made on-time payments to them.
Pat
Oh Geeze.
All my best,
Danni
Hi. I know how you feel. And I basically had to go through CCCS or I would never pay it off. My DMP plan starts the beginning of March and its a huge weight off my shoulders.
You could try calling and asking them to lower it. Good luck.
Unless they are raising your rate because of late payment, they are changing the terms of your agreement. In the notification letter, there is a place where you can write and decline the changes. The catch is that you can't use the card, because the account is closed. You can, however, continue paying the remainder of the balance under your current agreement. I've recently done this with both citibank and Bank One. I couldn't care less whether the account was closed or not. I just wanted to maintain my 12% interest rate vs. the 29% they wanted to impose. As long as I don't have late payments (I've had none for 7 years), my rate only changes when prime does. Good luck. I always make sure that I read everything in those notification letters.
Momtochris
"Unless they are raising your rate because of late payment, they are changing the terms of your agreement. In the notification letter, there is a place where you can write and decline the changes. The catch is that you can't use the card, because the account is closed."
Not necessarily...the most recent 'thing' with chase/bank one is to send you a change in agreement, where it can raise your rate due to adverse info in a credit report (including having too high a debt load or a late payment somewhere else - even at the gas co)...to top it off, if you cancel the card, it automatically goes to a default rate of say 25%. If the said account is closed AND you are late on a payment, they reserve the right to demand payment on the full balance IMMEDIATELY
This happened on our 2 credit cards with a combined balance of over 30K, no one in their right mind would approve us for a new low interest card, couldn't qualify for a home equity loan since I have been self employeed for under 2 years.
So we filed Ch 7 last month. Up until then we had never had a late payment in our 7 years of marriage, or prior.
Good Luck!
Sola
Edited to add..my chase/bank one cards have had in the agreement about rate changes due to adverse credit report (any negative info = too high balances, not just late payments) for about the last 5 years or so. It was just this year they decided our balances were too high and going to raise our interest rate to 29%, and in a previous 'amendment' about a year ago there was the clause about closing an account would automatically change the rate to 25%. Well, we still were using the acct, and our interest rate was around 9%, no late pays, so we didn't think we would get 'caught'. Well, we were caught, one card was close to the balance, and it went over balance with the rate change, which in made it default, and we have since stopped paying since we are filing ch7. We figure if they are going to screw us, we can screw them back. Over the last 7 years, we have probably paid back most of what we charged, anyway.
Edited 2/1/2005 3:43 pm ET ET by sola_rae
Sola,
That is exactly how I feel. Yes, I admit I got myself into the initial situation. However, I have done everything (i.e. paid on time the amount due) expected of me for YEARS and YEARS. They have already made TONS of money off of me in interest. I have never been so digusted in my life.
Honestly I feel as if they are pushing me to the edge....forcing me to either go to CCCS or bankruptcy. SPeaking of which, I have an appointment tomorrow with a bankruptcy attorney. I just cannot take the stress of this!
I called and tried to negotiate and they refused. And like you, I have no other cards left to turn too at lower rates. I consider the Chase/Bank One conglomerate pure evil!!! LOL, but really true.
I am a lurker..I hope you don't mind me posting. We just dealt with this with the same company. When my husband threatened filing bankruptcy the supervisor agreed to close the account at the same rate. Before they had told us that closing the account would change the rate to the 25%. HOWEVER, when it came to them getting nothing for payment they were very helpful. They cannot change the rate unless we are late on a payment. And yes we have that in writing with the closed account letter they sent out. They can and will do more for you then they want you to believe. Don't let them push you around.
Kathy
I'm not sure what accounts for our different experiences. Each time I've received one of those notices, I've been able to decline the change. I've received the notices from MBNA, Citibank, and now Bank One/Chase. Each time I have declined the change prior to the date on the notice and have maintained significantly lower interest rates. My Citibank account has been closed for close to a year with an interest rate of approximately 12%. Maybe there are differences in our state laws. I live in Maryland. I agree that it would be really hard to pay off a high balance with that sort of interest rate. I owe approximately $40,000.
I'm sorry that you have had such a hard time. Best wishes in whatever you decide to do.