Ooooh those credit card bastards

[MorningGlow]

DH was carrying quite a large amount on his credit card (long story--let's just say we're working diligently at eradicating it). I got a debt consolidation loan and cleared the card of all but about $900.

Got a note in the mail yesterday: "Change of terms: All purchases will now be at a variable rate starting at 20.24 percent! You may reject these terms in writing. If you reject these terms, your account will be frozen and will no longer allow purchases."

BASTIDS!

Meh. Hated the cc company anyway. Screw 'em. :P

[MissB]

1. So call them and ask that the card be frozen.

Unless they change their terms.

If you have more than one credit card, you'll likely see this happen again. It is what they do.

[Dora]

2. So accept their invitation to reject their terms.

And if you really need a card you can use, I'm sure you'll have ample invitations for new credit cards at low low LOW rates. Especially because you've wiped out so much of your card debt.

They just hate it when we play their game by their rules.

[MorningGlow]

Exactly

Let 'em freeze it--we don't care. Got DH a card on my account, which will get us down from three cards to ONE (albeit split between the two of us), and that's the end of that. Just paid a chunk of the $900 and will pay the rest off in two months (maybe one month if I feel like it). Then SCREW 'EM! :P

[MissB]

6. No, you don't just "let them freeze it". YOU have to call them

and tell them that you reject their terms and tell them to freeze it.

They won't do it on their own. If you don't call them, then you've accepted their terms.

[MorningGlow]

17. Yep, I know

Sorry I responded in a hurry. As I said in my original post, they said we had to put the rejection in writing. And we will! When I said "let 'em" I meant "that's fine--who cares--we're not crying about it!"

[MorningGlow]

4. Oop dupe

[AllegroRondo]

3. Reject them!

just make sure you do it in writing, and send it certified mail, return receipt requested.

[MorningGlow]

5. Yessiree

We're going to enjoy writing that letter, too!

[walldude]

7. Don't have credit cards. Never did, never will.

It was a bitch till they came out with debit cards but you can survive without them..

[MorningGlow]

22. You are my hero

I aspire to be cc free. Someday! :hi:

[scarletwoman]

23. Yes, you CAN survive without them! I'm with you - NO credit cards, NO way!

Just wanted to let you know that you aren't alone.

Speaking as someone who has tried for years to get a "no credit cards" message out on DU, I can tell you that this message generally invokes either no interest, or outright hostility.

sw

[Marie26]

8. Write them a letter

stating that you are rejecting the changes, and are requesting that the account be closed. Send it certified mail & keep the receipt. Then you'll be able to keep the lower rate. I did this when my credit card company tried to jack up the rate - it really does work.

[donco6]

9. FREEZE THAT CARD!

That's just criminal. Good thing you read the fine print there.

[AndyA]

10. In your letter, request a written response from the CC company that

they received your letter, and have closed the account. I've found out later that accounts I asked to be closed actually weren't. And when I contacted the company again to inquire why, they said they never got my letter. So make sure they reply. If they don't, get on the phone and demand a written response be mailed to you. And then hold on to it, it could save you a lot of trouble down the road.

I hate credit card companies.

Good luck!

[Sadie5]

11. Anyone know when hearings will be held

by Congress on these CC rates. They seem to be out for blood.

[Purveyor]

12. Dodd held a hearing last week. Here is excerpt from article on those hearings...

Congress Targets Credit Card Companies For Reform

By Martin H. Bosworth
ConsumerAffairs.Com

January 29, 2007



After years of having its way with American consumers, the multibillion-dollar credit card business may soon face greater oversight and tighter reins.

"I would like to put the credit card industry, issuing banks and card associations on notice," said Sen. Chris Dodd (D-CT), chairman of the Senate Banking Committee.

"If you currently engage in any business practice that you would be ashamed to discuss before this Committee, I would strongly encourage you to cease and desist that practice."

---snip---

Hope On The Horizon

The hearing put credit card issuers on notice that change may be on the way. Dodd introduced legislation in the previous Congress that would ban certain penalty fees and mandate clearer disclosure of credit card terms and is expected to introduce a tougher version of the bill this year.

---snip---

Still, Prof. Warren warned that Congress has a limited window of opportunity in which to act.

With the continuing slump of housing sales causing more defaults and foreclosures, and job growth continually shaky, consumers need help from their debt.

---end of excerpt---

http://www.consumeraffairs.com/news04/2007/01/congress_credit_cards.html

[MorningGlow]

18. Yeah, I do that all the time too

Because I got burned on a credit report that had too many "open" accounts--our mortgage broker said that was bad because even though we had a lot of available credit, which could mean we're trustworthy/a good risk, it's bad because we could be spastic and suddenly use up all that credit in one wild fling or something.

However, I have to contact the credit card I just cancelled (a different one that I also paid off the balance with the debt consolidation loan)--I closed it, got a letter saying it was closed...and then got my "new card" for the same damned account! I really hope they crossed in the mail and they're not secretly keeping it open.

I hate credit card companies too.

[Poiuyt]

13. And when you close the CC account, make sure you tell them to report to

the credit bureaus that the account was closed at YOUR request

[MorningGlow]

19. Good tip--thanks! n/t

[demrabble]

14. Consider Yourself Somewhat Lucky

20.24 percent is awful.

But I have a friend who pays 29.75 per cent on his credit card balances.

He was sick and almost died about two years ago. While he was in the hospital, he was not able to pay his credit cards, so his credit cards all stuck him with the "Universal Default Rate" -- 29.75 (in Florida).

Is just sucks.

[SammyWinstonJack]

29. Where's their mask and gun?

That's criminal! I recently paid all my cc off and closed them. Washington Mutual wasn't too happy. :rofl:

[progressivebydesign]

15. CALL them! I did and got it reversed back to the normal rate!

It's the freakin' UNIVERSAL default rate that SHOULD be repealed by the Democratic Congress! If you are even one day late on ANY bill, they can up the interest rates on all of your accounts. It's a major giveaway to the credit card corporations.

Now.. when I got notice of that happening on one of my cards (because I was 2 days late on a payment on another card), I called them and said that I was just going to pay it off and close it, because I was so hurt by what they did.. and I reminded them I have been a good customer for a few years, never late on that card, etc.

They put me through to another person who reviewed the account, and reversed the decision. Try it.. it might work.

Always better for your credit score to keep a card open, even if you'll never use it, than to cancel. They look at long term accounts favorably.

Now, if we can just get the credit card lobbyists out of the Congress' asses for a while, we could get that practice outlawed as usurious.

[MorningGlow]

20. We are definitely not afraid of arguing with cc companies

I have wrangled lower rates before, especially on a card I have been loyal to for more than 15 years. But this one is just beyond the pale. We were so disgusted that we decided to pull our business completely. (They haven't been the best of companies to do business with over the years, so we won't miss them.)

Hear hear on removing the cc lobbyists--they have been having a field day under the Bush administration especially (what corporation hasn't?)--now it's time to give the reins a hard yank.

[Dracos]

16. If this is legal the law needs to be changed

[Jeanette in FL]

21. Who was the CC company?

You are getting great advice in the responses. Yes, tell them to close the account and add a nice little FU too.

[MorningGlow]

25. Chase

Can't stand 'em. Sorry we stuck with them for this long (a few years--an eternity in these days of The Credit Card Shuffle).

[Jeanette in FL]

27. I would have bet that

Years ago, we had some severe finacial hardships. I called all my creditors, utilities and explained the situation. Just about everyone worked with me, except Chase.

So I told them that they just forced me to put them at the bottom of my bill pile.

Every month they would call and ask if I was going to make a payment. I would tell them that I couldn't and that next month wasn't looking good either. Within three months they sued me for collection.

That ended up being good for me because they were adding $90.00 a month in interest. Once it went into the court system, all interest stopped.

Went to court with a mediator, I told my story (KISS), they told theirs. All interest was erased from the time I had first contacted them and the amount was reduced by half because they just wanted to settle the account and get it off their books. It appeared on my credit report something like "late, paid in full, account closed by me".


I was real sorry I ever stuck with them as well. Every week I get a credit offer from them offering me the moon. I send the thing back, with my name and address on the application, with FUCK YOU written across the whole thing. They still send them to me.

[MorningGlow]

28. Wow Jeanette, what a story!

Glad you triumphed! And I don't blame you for repeatedly writing "Fuck you" on their mail! DH is about ready to do the same! (We wish we had $900--we would throw it at them and tell them to close the account immediately--AND tell them to fuck themselves in no uncertain terms. Just more evidence that credit card companies are the devil.)

[MazeRat7]

24. Reject terms, get another card, pay-off frozen card, carry on.....

Your not married to these lenders, play one against the other. Whoever has the best deal wins. So, yeah... the fact that you have "paid" the debt (sans $900) makes you a prime candidate for someone else offering say 18% on purchases. Hell if your really motivated you can find 9-12% rates out there (depending on your credit history).

Oh and dont forget to xfer that $900 to another card at a 1.99-3-99% xfer rate and pay it down from there.

MZr7

[MorningGlow]

26. I just paid about half of the $900

So I think we're good there--one or two more payments should do it. I know MBNA isn't "blue", but I have a 10.99% rate with them, and they've actually been good to me over many years, so we're sticking with them for now. That's the account I just got DH added to.