Rate change, Should I worry?

[KensFz6]

So, yesterday I got a letter in the mail from Chase credit card company.

In a nut shell, Chase is increasing credit card's interest rate from 9% to 12% Because of the market to ensure profitability. The letter goes on to say, that if I don't like it, I can close the account and pay off the balance immediately.

My intial reaction is "Hey, they can't do that!"
Does anyone else think this sounds like BS or is it just me? Did we not just bail out the banks and lenders so this kind of thing wouldn't happen? Or do you think this is justified?

 

[boo68]

I have read several article indicating that credit card companies are trying to get capital up so they are increasing the interest rates on good customers like you and me, so they can make up for the people that default. The other thought is that they are trying to get alot of people to close their accounts, and pay the balance off to get some cash flow. Is it fair? no, but the rules that just passed that will restrict this sort of behaviour do not go into effect in 2010.. so the banks are taking everything they can before they have the restrictions in place.

http://www.abcnews.go.com/GMA/Story?id=4277250&page=2

 

[Deleted member 2349]

yeah that doesn't seems right unless they want to add a clause like "on future balances". I don't think its right for them to change it for what you already owe. I would call and go as high up as possible...maybe you can bitch enough and have them drop your balance so you can pay it off and you'll take your business elsewhere...or just apply for a balance transfer to another credit card company. Some used to have 0% on transfers for 6-12 months. That sure does suck of them...i'm sure the CEOs need the money for a new car or something anyway...

 

[necrotimus]

So, yesterday I got a letter in the mail from Chase credit card company.

In a nut shell, Chase is increasing credit card's interest rate from 9% to 12% Because of the market to ensure profitability. The letter goes on to say, that if I don't like it, I can close the account and pay off the balance immediately.

My intial reaction is "Hey, they can't do that!"
Does anyone else think this sounds like BS or is it just me? Did we not just bail out the banks and lenders so this kind of thing wouldn't happen? Or do you think this is justified?

It is BS but they currently do have that right. Not only that but they can also decrease your credit limit below what you currently owe forcing you to pay over your limit fees. Instea dof paying in full you 'should' be able to close the account and keep your current terms until it is paid off but not sure if all companies are allowign that option.

 

[KensFz6]

I've been looking around for one to switch to that doesn't charge X% on balance transfers but so far, no luck.

It really does suck that they can just bump a Fixed rate like this even though we haven't missed any payments.

 

[dako81]

If you have a balance on the card, go to your local credit union and check out what they offer for balance transfers, find a deal and cancel the chase card.

My local credit union has credit card balance transfers up to something like $20k for 5.99%.

 

[abacall]

One option is to find a balance transfer card that will have a contract that does not allow them to change the terms for X amount of months. That will allow you to pay off as much as you can. If the term is up, and you still have a balance, do it again.

One thing I have to say here. The problems that are happening with credit are forcing people to fix old habits. We are all so used to borrowing to buy stuff that we forgot how to save for what we want. I have the same problem, I used to borrow for things that I wanted. That piles up quick. We all have to reanalyze out spending habits, just like we reanalyzed our driving habits when gas prices jumped.

 

[gt89stang393]

Bank of America tried this with my wife, jumped it to a 25% rate and she was never late or missed a payment. She called and canceled it on the spot, but they are allowing her to repay what she owes at the rate she had before they jumped it up like that. They also credited her, which is pretty cool, call and complain, tell them you are canceling and find another card or get a personal loan and transfer the balance.

 

[mpb218]

As far as I know it's legal, and they can also change your due date without telling you, thus charging late fees. Pricks. If you can, pay it off (that goes without saying, I know) but screw the bastards!!!