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Home Page >> Hot Issues >> Credit Card Rate Hikes
Credit Card Abuse, Fees and Rate HikesIf you have suffered credit card rate hike from one month to the next as a result of a late payment or overlimit; if in the past you received a pre-approved offer for an account "Up To $3,000" (or some other amount), but were provided a card with a much smaller credit limit and an annual fee; if you have suffered credit card annual fees that trigger overlimit fees; if your Providian credit card account was transferred to Chase along with a substantial rate increase, then you may wish to talk to a lawyer.
Credit Card Abuse Legal HelpIf you have been a victim of any unfair practices by your credit card company, including substantial rate increases, unfair penalties or broken promises, and would like to take a stand by participating in an action against them, please click the link below to submit your credit card complaint to a concerned lawyer who will review your claim at no charge. There is also a special need for certain matters for California residents who can act as class representatives.Please click here for a free evaluation of your case Law Offices of Barry Kramer - Barry Kramer Posted on Jul-14-04 Updated on Apr-27-08 |
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Frank doesn't remember getting any notification of credit card rate hikes in the mail. "I might have got something but it must have looked like junk mail," she says. "Besides, why would I bother to read my mail from the bank when I do all my banking online?" [
"When I recently received a statement from Chase Bank that my rate had increased to 17 percent from 9.9 percent, I was angry, to say the least," says Bozin. "I phoned and asked their reasoning—I had always paid off my balance each month and never had a late payment." But Chase refused to change this new rate; they told Bozin that it was because he had reached high limits on other credit cards." [
Hugh Gerrard had a credit card with Chase Bank and never made a payment late in 10 years—his credit rating was impeccable. But he made one mistake that cost Chase a loyal customer. "Because I overlooked an old balance of $20, my interest rate was raised to 29.9 percent from 5.99 percent," says Gerrard. [
My Dear Credit Card, You had to know that someday, somewhere, we would come to some fork in the road. That we would wake up one day and find that the magic was over, the honeymoon long since expired. I'm sorry it has come to this, but I have to say it. You are no longer the friend you once were. And this credit card abuse has got to stop. [
Credit card abuse is rampant. Credit card companies are increasingly offering teaser rates and then dramatically increasing the rates without notice on the basis of a single late payment, or an overlimit, or some other pretense. These unfair practices are driving interest rates out of sight.
People like to think they know all the 'ins and outs' of the contracts they sign, but credit card contracts are often written in language that confuses consumers. Many of the clauses in the contracts give credit card companies the ability to suddenly raise credit cards rates with little or no notice to the customer. Lawsuits against some credit card issuers are forcing them to deal more fairly with their consumers. [
The average credit card debt in America stands at about $10,000 per household. That's the average. Some are a lot higher than that - especially when you take into account the many households that have many, many credit cards already, and are inundated with invitations to acquire many more. [
They're convenient to use and easy to get. They also have the power to land you in financial ruin and your spending habits aren't entirely to blame. The problem is that card issuers have been ramping up fees and charges - in many cases without even telling you. [
Foreign currency fees are just another way that credit card companies abuse their customers in order to make a profit. John Carter recently discovered that both his Visa and MasterCard were charging foreign currency fees. Now, he's concerned that these fees will have a serious impact on his business. [
FEB-21-08: It's hardly surprising that credit card defaults have risen 30 percent, given the challenges consumers face simply navigating the minefield of fees, penalties and other questionable practices amounting to credit card abuse. [
FEB-15-08: Despite the excellent payment histories of credit card customers, credit card companies are still raising their rates and customers are very angry. Credit card rates have been increasing by as much as 50% for some customers. In January, Bank of America customers received notification that their interest rates would be raising from 13% to 24.99% and these customers are confused as to what they could've done to incur such high rates. The truth is that many did nothing to incur these rates, but that credit card companies are raising rates all over the country. [
JUL-26-07: According to the Consumer Protection Board, most consumers have at least seven credit cards. Unfortunately, the companies that issue the cards use many unfair tactics such as changing terms and interest rates without properly notifying customers and charging hidden fees that consumers do not always fully understand. [
MAR-07-07: One credit card company has announced it is making major changes to the way it does business, specifically with regards to sudden rate hikes. Earlier this month, Citigroup Inc. announced that it would end universal default on all Citi-branded consumer credit cards. [© 2001-2008 Online Legal Marketing Ltd. All rights reserved.
