Lawyers and Settlements Lawyers and Settlements
Home Page >> Hot Issues >> Credit Card Rate Hikes

Credit Card Abuse, Fees and Rate Hikes

If 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: Articles and Interviews

Credit Card Rates: Transfer Fees Increase

Last year, Angie decided to save money by consolidating balances from a few credit card accounts and transferring them to The Bank of America—where she had a platinum VISA card. "They told me I would be charged 9.9 percent for a transfer balance but my statement showed over 40 percent," says Angie. Yet another blatant abuse of credit card rate hikes. [MORE: TRANSFER FEES INCREASE]

Credit Card Rate Hikes: Four Customers Tell Companies to Take a Hike

What follows are four anecdotes of credit card abuse. Daily, people's lives are being destroyed by unfair rate hikes, by unscrupulous credit card companies. Countless consumers are so deep in debt that any day now, they face foreclosure on their homes. Many have sunk into deep depression and can't find their way out. Isn't it time the government stepped in and put a stop to unfair credit card rate hikes? [MORE: TAKE A HIKE]

Credit Card Abuse: "I'm going to Fight till the End"

Connie Pruitt has had her fair share of credit card abuse, particularly increased rate hikes. "I'm willing to pay whatever I bought and their original interest rate," says Pruitt. "But I was lied to. Once I was given the bait and hook, it was a whole other story." [MORE: CREDIT CARD FIGHT]

Credit Card Rate Hikes: Devious Practices Online

credit card rate hike abuse onlineFrank 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?" [MORE: ONLINE BANKING]

Credit card holders: Are You a Deadbeat or Revolver?

credit card rate hikes"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." [MORE: CREDIT RATE HIKES]

Credit Card Company Practices: Legality is Questionable

california labor law wrongful terminationHugh 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. [MORE: CREDIT COMPANIES QUESTIONED]

A Dear John Letter to My Credit Card

credit card abuse rate hikeMy 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. [MORE: DEAR CREDIT CARD]

Credit Card Rate Hikes: No one Wins

The interest rates on all her credit cards jumped from between 1.9 and 2.9 percent to between 29 and 34.9 percent. "I was paying my bills on time, all the time," Andrea says. "But I was late with that one card and everything went up. I went from being able to pay them off slowly, to not even being able to pay the interest on my cards. My minimum payment was at least $900 per card. They said it was because I was a bad debt." [MORE: RISING CREDIT RATES]

Credit Card Abuse: How Universal Default Affects You

You may not be aware of it, but the credit card companies are watching you. Even if you already knew this, they are probably watching more closely than you think. [MORE: CREDIT & UNIVERSAL DEFAULTS]

Information on Credit Card Abuse
credit card fraud, abuse, rate hikes 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.

Lawyers working in the area of credit card abuse are actively pursuing credit card companies whose predatory practices involve (1) Unannounced Rate Increases, (2) Unannounced Credit Reductions, (3) Overlimit Fees triggered solely by annual fees, and (4) Pre-approved and other Special Offers that are not honored. Actions can be brought for incidents that occurred several years ago, particularly when the abuses are ongoing.



Read More About Credit Card Abuse

Credit Card Abuse: The only Abuse that is Legal

As much as consumers are beholden to their credit cards, with an abundance of credit card debt and conditioned towards monthly payments, dependence isn't enough; it appears as though credit card companies won't rest until consumers are completely held hostage by credit card abuse. [MORE: LEGAL CREDIT ABUSE]

Credit Card Rate Hikes Not Always Obvious to Consumers

credit card rate hikesPeople 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. [MORE: CREDIT CARD SUBTLETIES]

Credit Card Abuse: a Debt that Never Ends

credit card debt rising interest rateThe 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. [MORE: CREDIT CARD DEBT]

Credit Cards: The Hidden Costs

credit card abuse hidden costsThey'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. [MORE: HIDDEN CREDIT CARD COSTS]

Foreign Currency Fees: Another form of Credit Card Abuse

california labor laws computer programmersForeign 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. [MORE: FORIEGN CURRENCY FEES]

Credit Card Companies Rely On Your Score

Susan Rivera never read the 'stuffers' that came in the mail with her monthly statements from credit card companies. Just like most people do, she filed them in the trash can. [MORE: CREDIT SCORES]

Unfair Credit Card Practices

Unfair Credit Card Practices

Documentation of consumer action recommendations to U.S. Senate Banking Committee Oversight Hearing on unfair credit card practices. [TRUTH ABOUT CREDIT]



 
Credit Card Abuse Press Releases
credit card rate hikesFEB-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. [MORE: CREDIT CARD ABUSE CONTINUES]

credit card rate hikes 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. [MORE: CREDIT CARD RATE INCREASES]

credit card rate hikes consumer protectionJUL-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. [MORE: COURT INVOLVMENT]

credit company changes abuse rate hikesMAR-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. [MORE: CREDIT COMPANIES CHANGE]


Credit Card Abuse in the News:
JAN-16-08: Some credit card companies penalize customers for paying other bills late through universal default. [MOTLEY FOOL: CREDIT CARD RATE HIKE]

JAN-01-08: Some credit card companies hike interest rates on cardholders who make late payments to 30 percent and higher. They increase the rates even on customers who have good credit records. [FOX: CREDIT CARD RATE HIKE]

DEC-09-07: The Senate Permanent Subcommittee on Investigations is looking into allegations of unfair credit card rate hikes imposed on people who use their credit cards in good faith. In one case, the subcommittee heard about a person who in 12 months had four different interest rates on the same credit card. [TIMES HERALD: CREDIT CARD ABUSE]

OCT-17-07: The Federal Reserve Board is being urged to do more to protect credit card users. Consumer groups are banding together in an effort to put a stop to universal default and retroactive interest rates. [GAZETTE: CREDIT CARD ABUSE]

SEP-16-07: With problems surfacing in the mortgage market, consumers are turning to credit cards more and more. Issuers are being more dilgent than ever, watching for late payments in order to raise credit card interest rates or lower limits. [CHICAGO TRIBUNE: CREDIT CARD ABUSE]

SEP-15-07: Consumer Reports has issued a ranking of credit card companies that gave the nation's five largest Visa and MasterCard issuers only so-so ratings. Companies that scored poorly had unfair late payment fees and practiced universal default. [JOURNAL: CREDIT CARD ABUSE]

AUG-29-07: Credit card companies use a number of methods that cost consumers more money, even if customers are not aware of these practices. Some of the more abusive credit card practices include universal default, double-cycle billing, a payment fees. [NEWS: CREDIT CARD ABUSE]

AUG-15-07: Critics argue that it is unethical for credit card companies to raise interest rates on unpaid debt because they are late on an unrelated bill. Some critics compare the practice to loan sharking. [ARGUS LEADER: CREDIT CARD RATE HIKE]

AUG-12-07: John Edwards proposes a Borrower's Security Act that would end the practice of universal default, apply interest-rate increases to future balances only and restore a 10-day grace period before imposing late fees and penalty rates. [WARREN REPORTS: CREDIT CARD ABUSE]

AUG-01-07: Approximately one-third of credit card holders pay interest rates of 20% or more. Cardholders with household incomes between $25,000 and $50,000 are most likely to pay the highest interest rates. [MARKETWATCH: CREDIT CARD ABUSE]

JUL-30-07: One credit card customer was charged $29 because he paid his bill 31 minutes late. The charge put his account over-limit, so he paid an addition $29 over-the-limit fee. [USA TODAY: CREDIT CARD ABUSE]

JUL-26-07: Some credit card companies have taken to lowering a customer's credit limit if they feel the customer is a risk. However, the companies do not always provide customers with a warning that the limit is being decreased and then charge overlimit fees when the customer makes a purchase. [SMART MONEY: CREDIT CARD ABUSE]


Credit Card Abuse Legal Help

If 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

Search

Search 10,000 recent
cases and settlements
 
FAQ | TOS | Privacy | Disclaimer | About OLM | Contact OLM | Press | Advertise | Link to OLM | Site Map

© 2001-2008 Online Legal Marketing Ltd. All rights reserved.
Online Legal Marketing Ltd.