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The Credit Card madness continues
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hope_springs



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Post The Credit Card madness continues Reply with quote
I just read this post from a customer on Amazon.com:


Has anyone else just received a notice that the interest rate on their Amazon credit card is mandatorily going up to their present rate PLUS Prime as of July 1st?? I have had this card for over five years, bought thousands of dollars worth of Amazon products and never been late or short with a payment. Now I have received a notice that my interest rate is going up from 8.99% to 12.49% as of July first and if I refuse to agree with it, they will cancel my account! Well I made the call and refused to accept the new rate; now my card is cancelled and I lost all the points that I had accumulated in the process. I have always dealt with Amazon.com because they have had amazing deals on quality products; plus home delivery has been wonderful since I live out in the boonies. BUT NOW, it is not only a matter of principal to stop buying from Amazon, it will also be cheaper to drive into town to do my shopping. I doubt that I am the only one this is happening to...so if you haven't already...check your mail carefully, you may find that you have already received this notice and if you don't respond by June 22nd it will be an automatic rate increase!!
Thu May 28, 2009 2:09 am View user's profile Find all posts by hope_springs Send private message
Ms Pris



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that is happening with a lot credit cards!

On one of mine I cashed in my points then cancelled the card!

The others I accepted the rate change because I am in the market for a house! and it will affect my credit score. I have had them since 1992.
Fri May 29, 2009 2:55 am View user's profile Find all posts by Ms Pris Send private message
shadow777



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lol the net is for reading too!, lol lol

The news of this has been around since last year, lol can you say by by to those points? lol lol

But on a serious note, WHy are you upset, because the credit card companys is help you to stay out of debt?
Don't use the card.

You don't have the right to demand a credit rate, when you are not putting anything up as corlatrole to back your credit card loan, and if you pay off your loan before any intrest is due, why should the company give you a free ride?
Sat May 30, 2009 10:11 pm View user's profile Find all posts by shadow777 Send private message Send e-mail
hope_springs



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I don't see your point, Shadow. These folks were paying their credit cards by the agreed terms to avoid having their interest rate raised, yet got it raised for no reason. That doesn't happen with car loans or mortgages, why should it happen with credit cards?
Mon Jun 01, 2009 3:10 pm View user's profile Find all posts by hope_springs Send private message
Bootylicious



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In the tiny print, it should have mentioned that you have the right to appeal the high interest rate. At least mine did (VISA). I appealed by phone & to date my rates have [b]NOT[/b] been raised.
Mon Jun 01, 2009 6:21 pm View user's profile Find all posts by Bootylicious Send private message
aisha



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Shadow, quick note: the credit card changes/rate increases have now begun to occur because of the newly passed and proposed federal legislation diminishing the rights the credit card companies have to vary and/or increase rates arbitrarily.
So this didn't just start to occur last year -- it's a 'this moment' kinda thing

Lemme find an article.
Tue Jun 02, 2009 9:54 pm View user's profile Find all posts by aisha Send private message
aisha



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This is not an article, but it's from gobankingrates.com and accurately describes what's been going on since both the Senate and House passed resolutions expected to affect credit card companies/banks:

[quote="GBR"]Did Your Credit Card Rates Increase YESTERDAY?
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Posted in Credit Card Rates, Credit Card Limits
May 22nd, 2009
Since Congress overwhelmingly voted to pass a credit card legislation bill protecting consumers from unfair interest rate hikes and fees, credit card companies have been working to get their rates increases in before the legislation becomes official. In other words, your credit card interest rates were likely to have gone up yesterday as credit card companies raced to raise rates before the closing bell.

For instance, one of our readers notified us this morning that she received a letter yesterday that Chase was increasing her credit card interest rate from 9% to over 13%. The verbiage in the letter explained the reason for the rate increase was in order to "maintain the profitability" of the account. The notice gave a couple of weeks time to either a) close the account or b) do nothing and accept the rate increase.


Why did credit card companies rush to increase rates?

Under the new legislation:
No more retroactive rate hikes - Credit card companies cannot increase rates on existing balances, but only on new balances.
Longer notification periods - Credit card companies must give 45 days notice, rather than just 15

What should you do if your credit card rates have been raised?
If you've had the card a while and have a history of good payments - You may want to keep it in order to keep the age of your good credit accounts as old as possible. Learn more about maintaining old lines of credit

If you keep low balances - Consider keeping the card. The amount you're paying in interest is pretty low.

If you keep high balances but good payment record - You may want to consider finding a lower credit card rate and transferring your balance.

If you keep high balances but have bad credit or payment history - Focus on paying down your account, improving your credit, and then try to get a new card with a balance transfer. Also, it doesn't help you if they hiked your rate yesterday, but under the new legislation, if your rate is increased and you pay your account on time for 6 months, they have to reduce your rate again to the introductory rate offer.[/quote]


Here's an article from Yahoo http://news.yahoo.com/s/ap/20090519/ap_on_go_co/us_congress_credit_cards

[quote="Yahoo"]WASHINGTON The Senate voted overwhelmingly on Tuesday [May 19) to rein in credit card rate increases and excessive fees, hoping to give voters some breathing room amid a recession that has left hundreds of thousands of Americans jobless or facing foreclosure.

The House was on track to pass the measure as early as Wednesday, paving the way for President Barack Obama to see the bill on his desk by week's end.

"This is a victory for every American consumer who has ever suffered at the hands of a credit card company," said Sen. Christopher Dodd, D-Conn., chairman of the Banking Committee. The bill passed the Senate 90-5.

If enacted into law as expected, the bill woul give the credit card industry nine months to change the way it does business: Lenders would have to post their credit card agreements on the Internet and let customers pay their bills online or by phone without an added fee. They'd also have to give consumers a chance to spare themselves from over-the-limit fees and provide 45 days notice and an explanation before interest rates are increased.

Some of these changes are already on track to take effect in July 2010, under new rules being imposed by the Federal Reserve. But the Senate bill would put these changes into law and go further in restricting the types of bank fees and who can get a card.

For example, the Senate bill requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.

Bankers warned the measure would restrict credit at a time when Americans need it most. They defended their existing interest rates and fees on grounds that their business lending money to consumers with no collateral and little more than a promise to pay it back is very risky.

"What has been a short-term revolving unsecured loan will now become a medium-term unsecured loan, which is significantly more risky," said Edward Yingling, president and CEO of the American Bankers Association.

"It is a fundamental rule of lending that an increase in risk means that less credit will be available and that the credit that is available will often have a higher interest rate," Yingling added.

Voting against the Senate measure were GOP Sens. Lamar Alexander of Tennessee, Robert Bennett of Utah, Jon Kyl of Arizona and John Thune of South Dakota, as well as Democratic Sen. Tim Johnson of South Dakota.

But other senators didn't want to face voters in the 2010 election without proof that they are listening to constituents crushed by foreclosure rates and joblessness. Recent reports show that the number of foreclosures jumped 32 percent in April compared with the same month last year, while the jobless rate that month rose to 8.9 percent.

The legislation would not cap interest rates as some lawmakers had hoped. It also wouldn't prevent lenders from finding new ways to drain customers' bank accounts or keep consumers from spending money they don't have.

But it would give spenders more flexibility and outlaw many of the surprise costs associated with credit cards at a time when money is tight in most households. For example, under the bill, a cardholder would have to opt to be allowed to go over a credit limit. If customers don't agree and the bank authorizes a charge that would push them over their limit, the lender couldn't levy an over-limit fee.

Another boon for consumers is limiting a practice known as "universal default," when a lender sharply increases a cardholder's interest rate on an existing balance because the customer is late paying that bill or other, unrelated bills. Under the new legislation, a customer would have to be more than 60 days behind on a payment before seeing a rate increase on an existing balance.

Even then, the credit card company would be required to restore the previous, lower rate after six months if the cardholder pays the minimum balance on time.

House Democratic leaders said they planned to move quickly. Last month, the House approved, by 357-70, a similar credit card bill by Rep. Carolyn Maloney, D-N.Y.

Complicating the issue somewhat was a measure added to the Senate bill that would allow people to carry loaded guns in national parks and wildlife refuges. That provision, sponsored by Sen. Tom Coburn, R-Okla., passed, 67-29.

House Democratic Leader Steny Hoyer of Maryland told reporters on Tuesday that the House might vote separately on the gun proposal so as not to bog down the credit card overhaul.

If the two bills are passed separately as expected, they would be rejoined before being sent to the president as a single bill, said Hoyer.[/quote]
Tue Jun 02, 2009 9:59 pm View user's profile Find all posts by aisha Send private message
shadow777



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[quote="aisha"]Shadow, quick note: the credit card changes/rate increases have now begun to occur because of the newly passed and proposed federal legislation diminishing the rights the credit card companies have to vary and/or increase rates arbitrarily.
So this didn't just start to occur last year -- it's a 'this moment' kinda thing

Lemme find an article.[/quote]


My rate was raised back in 2007. My credit was as pure as water from the North Pole. this was based on laws passed before 2008/9.

If you think back to the dead beat laws passed. EMp>>laws that made it harder to us bankruptcy?


Congress Targets Credit Card Companies For Reform

By Martin H. Bosworth
ConsumerAffairs.com

January 29, 2007
http://www.consumeraffairs.com/news04/2007/01/congress_credit_cards.html#ixzz0HW7dKm24&D
Fri Jun 05, 2009 3:00 am View user's profile Find all posts by shadow777 Send private message Send e-mail
shadow777



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[quote="hope_springs"]I don't see your point, Shadow. These folks were paying their credit cards by the agreed terms to avoid having their interest rate raised, yet got it raised for no reason. That doesn't happen with car loans or mortgages, why should it happen with credit cards?[/quote]

When credit card companies have so much power, they can do as they please.

Fees are imposed to pay for extras on cards.
Products prices are higher because folks stop using credit cards, instead use debit cards.

Quote>>>THis does not happen to car loans!
oh! yes it does>>>>>>changing the rules

"Subject To Financing": why the dealer called you 2 weeks later to re-sign your auto loan
New car financing at the dealer can be a headache. The "Subject to Financing" clause appears on paperwork of all new car loans. It means the deal is not done, yet you think you are signing a contract. Then 2 weeks later the car dealer calls saying "your new car loan fell through." They knew what you qualified for when you bought the car, a common auto loan scam, usually pulled on people with bad credit. You should not buy a new car first then worry about new car financing. When you buy a house, you MUST have approval first, so have your car loan in order before car shopping. Use online auto loan sites such as Up2Drive and myAutoLoan.com. The lower online auto loan rates avoid these scams. Sometimes dealers call and say they found you a lower APR. Oh, Really? Have them fax you over all the new figures and APR in writing, and make sure they did not increase the number of months. Otherwise do not re-sign any contracts. We are big proponents of online new car loans. Don't get stuck with bad credit auto loan if it's not necessary. This would have been avoided if you used online auto financing.
Fri Jun 05, 2009 3:07 am View user's profile Find all posts by shadow777 Send private message Send e-mail
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