Can a credit card company increase your interest rate if you’ve never been late or went over the limit?
Also, if you decided not to accept their new rate and cancelled the card should you be responsible for the Annual Fee, if it were charged 3 days prior to your cancellation? I know that I’ve heard alot about credit card companies doing this but not the larger ones. My Best Buy Reward Mastercard interest rate went from 9.9% to 26.74% (beginning 12/09) and I’m wondering who I can contact to see if it’s legal for them to still charge me an Annual Fee. They gave me the option to accept the terms or call and cancel the card. Of course, I cancelled it, regardless of what it will do to my FICO score. I’m not paying that much for interest on ANY card. This is why I avoid department store cards.
I would like to contact someone who monitors the laws in the State of Florida but do not know where to write to. Any information would be greatly appreciated.
I’ve already contacted them and they refuse to remove the Annual Fee. Also, I received an email stating that they would remove it if I reconsidered closing the card but would have to accept the new interest rate. Swindlers…I tell ya.
WOULDN’T YOU KNOW IT! We just got married and decided to use this card because of it’s interest rate and planned to pay it off within 6 months.
WOULDN’T YOU KNOW IT! We just got married and decided to use this card because of it’s interest rate and planned to pay it off within 6 months.
Sorry about the duplicate update. Yahoo Answers and their error.
TO MY TAKE ON IT ONLY: Yes, but I’ve had the card for over a year. I did talk to them and they WILL waive the Annual Fee if I remain a cardholder and settle for the high interest rate. Still working on another negotiation. Thanks.
Jack
Dana
ask them to pro rate the fee or if just a few days ask them to credit you the full amount. I am guessing they will.
Jerry
Yes, they are doing it left and right for no reason at all. It’s not just you, but you can talk to them about it. My guess is they won’t care because they need the money.
After all, all they have to do is stick their hand out for another loan from Obama, give all their top execs a big raise and make YOU and ME pay for it with higher interest rates!
Beatrice
Yes they can and most banks have been doing that. I received a notice from Discover Card and the GM MasterCard last week notifying me that they are increasing the interest rate and minimum payments.
I have never been late or gone over the limit with either card but it doesn’t bother me since I always pay the balance in full each month.
Clarence
Yes, they can, and they will, and they have been. Most are doing this sort of thing in anticipation of the law that will go into effect in Feb 2010. It’s perfectly legal for them to jack up rates, min payments and do whatever else they want right now. The annual fee, may be on your back still. As the other guy said, maybe they would prorate it for you.
Did you get this card with an introductory 9% rate?