Credit Card Interest Rate Hikes

 FYI....credit card companies are now looking for any reason to up your
rates...defaults are up and they need to cover their losses.

I recently had a 7% rate jacked up to 21%....because they felt like it.

Needless to say, this well known national credit card company and I
have parted ways.

TMT

 

They don't have losses.  They can predict with great accuracy what default
rates will be, and factor that in when setting rates for everyone else, to
keep their profits on target.  Their various additional charges, fees and
sudden rate hikes like yours, in addition to the consumer bankruptcy
"reform" they ramrodded through Congress, further guarantee their continued
profitability.  Ever wonder why banks and credit card companies give "free"
accounts to college kids and other poor people?  Its because they make far
more in overdraft and other fees than they do from interest.

Jeff

 I would agree.

I have several credit cards with very low rates...only one so far has
jacked the rates up. If the others also do, that will be the end of our
business relationship.

TMT

 

Then perhaps you can explain why Chase moved my payment due date up
without any input from me, and for no apparent reason other than
"policy change."  Since I tend to pay on a schedule, and set up
payments in advance, this one caught me off-guard.  Barclay in the UK
is known for using the same tactic.  It might not be breaking the law,
but only because the lobbying efforts have allowed these companies to
change their rules midstream.  Mastercard and Visa are not cracking
down on these banks and their shenanigans, so they also bear
responsibility.

I fully believe you that there are a huge number of deadbeats out
there, but when those of us who play by the rules get snared in a
trick, we don't look kindly on the industry.

 

I can't explain anything to you in absolutes, because I don't know who you
are and do not have your account information to compare to your story. But I
will see if I can give you some general answers.

and for no apparent reason other than

Are you willing to state that you have read every notice your credit card
sent you in the mail? Do you read your statements thoroughly for any
notices? Because legally they are required to inform you of policy changes
in advance. But if you throw out those notices and don't bother to look for
notices then changes will come up on you unexpectedly. Mind you, I don't
know the exact situation but all changes require notice.

  Barclay in the UK

The problem is that most people treat getting a credit card like getting
money and its really not. So many times I see people dig themselves into
giant holes out of ignorance and then profess that the credit card company
is out to get them.

It does sound like a trick but you might try requesting copies of the notice
you were sent and the dates of the notice.